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Originally posted by NoHierarchy
Flat tax sounds all nice and fair... but you fail to see the larger picture of PRICE versus INCOME.
A rich person has exponentially more ability than a poor person to purchase goods, start businesses, influence politics, afford food/shelter/medical care/etc.
The PRICE of everything is the SAME for everyone, whether rich or poor. Government fines and fees are the SAME for everyone, mostly regardless of income. This is completely unfair. The flat tax makes NO SENSE in a world where the rich really do get richer, the poor get poorer, and increased wealth exponentially decreases struggle within the economy and with taxes.
Keep in mind... the poor need EVERY LAST PENNY THAT THEY EARN, so MORE taxes would be a terrible idea for the poor. However, the RICH (depending on the bracket defined) could increase their taxes to great levels and STILL live like kings. The way a flat tax would affect a poor person would be far worse than how it would affect a rich person. If you take 30% of somebody's $20,000 per year, that's going to hurt them FAR MORE than taking 30% of someone's $1 million per year.
Originally posted by NoHierarchy
If you take 30% of somebody's $20,000 per year, that's going to hurt them FAR MORE than taking 30% of someone's $1 million per year.
.....A rich person has exponentially more ability than a poor person to purchase goods, start businesses, influence politics, afford food/shelter/medical care/etc.
The PRICE of everything is the SAME for everyone, whether rich or poor. Government fines and fees are the SAME for everyone, mostly regardless of income. This is completely unfair. The flat tax makes NO SENSE in a world where the rich really do get richer, the poor get poorer, and increased wealth exponentially decreases struggle within the economy and with taxes......
...Second, high marginal tax rates encourage tax-shelter investments and other forms of tax avoidance. This is inefficient. If, for example, a one-dollar item is tax deductible and the individual has a marginal tax of 40 percent, he will buy the item if it is worth more than sixty cents to him because the true cost to him is only sixty cents. Yet the one-dollar price reflects the value of resources given up to produce the item. High marginal tax rates, therefore, cause an item with a cost of one dollar to be used by someone who values it less than one dollar. Taxpayers facing high marginal tax rates will spend on pleasurable, tax-deductible items such as plush offices, professional conferences held in favorite vacation spots, and various fringe benefits (e.g., a company luxury automobile, business entertainment, and a company retirement plan). Real output is less than its potential because resources are wasted producing goods that are valued less than their cost of production.... www.econlib.org...
Carroll Quigley, Tragedy and Hope, Macmillan, New York, p. 326
When people of this class are stricken by guilt feelings while plotting world wars and economic depressions which will bring misery, suffering and death to millions of the world’s inhabitants, they sometimes have qualms. These qualms are jeered at by their peers as "a failure of nerve". After a bout with their psychiatrists, they return to their work with renewed gusto, with no further digressions of pity for "the little people" who are to be their victims.
www.apfn.org...