A More Progressive Tax System Makes People Happier, 54-Nation Study Finds

Source

The way some people talk, you'd think that a flat tax system -- in which everyone pays at the same rate regardless of income -- would make citizens feel better than more progressive taxation, where wealthier people are taxed at higher rates. Indeed, the U.S. has been diminishing progressivity of its tax structure for decades.

It's a good read, I recommend reading the entire article in full.

I'm not surprised at all with the finding, and I'm all for the progressive tax system. Because it'll avoid taxing the poor and middle class (the consumers) twice. The flat tax and regressive tax system tends to increase the gap between the rich and the rest because the rich have more ability and tend to shift their burden and cost to the lower class (the real trickle down effect). That kind of system is dangerous because it'll constantly pressuring the lower class thus creating an imbalance that could lead to destabilization.

First, all types of income(productivity) taxes are bad because they punish "work". This discourages some from working as much as they would under other circumstances. It discourages some from working at all. It encourages not working. Taxing spending(consumption) makes a lot more sense. This is the action you want to discourage.

The topic of tax rates cannot be discussed without discussing WHY you are taxing people. What do you NEED your government to do for you? Invade Syria or Iran, pay for your mobile phone, mortgage, and McDonalds or liquor?

At some point people first need to educate themselves on monetary policy and economics before jumping on the 'tax someone else' band wagon. Taxing the people that work more and earn more obviously makes you feel better but its not a valid economic policy as has been shown time and time again.

First we need to agree on what it is we want the government to do and what 'progressives' want it to do its always seems to be different than what it does - like kill people overseas at a rate of $1,000,000,000/day. If we could save that money then I wouldn't mind spending it on bridges but lets also agree that the government is wretched at one size fits all education and at creating jobs (which require more taxes and have limited scope). Only so many bridges and roads can be built.

All of these quick-fix feel-good programs are what ended up getting a lot of communists, Jews, and blacks murdered.

reply to post by Jazzyguy


In the US we have a fully Progressive tax system now. Half the workers in the US pay no income tax at all right now. The top 5% pay nearly all the income tax in fact.

Oddly enough the Progressives are now the richest per capita in the US. Many of our Billionaires are in fact personal freinds with people like Obama. Odd bedfellows don't you think?

A Graduated Flat Tax however sets a rate by income that is a real one. It eliminates loopholes given to the rich freinds of politicians entirely and each group pays a fixed rate depending on their income category. It eliminates the IRS and the need for enforcement if it is tied to purchases. A simple ID could provide the rate to tax the purchaser at, at the time of purchase. It's always been a simple to fix problem. Food could even be exempted from any taxation. Not hard at all to implement.

Taxes on business are a wash in this. All taxes are passed along to consumers in the price of the goods and services they sell no matter the tax system. If it were not true the businesses would go broke and no longer exist as tax rates go up.

We need a graduated Flat Tax, no loopholes and remove any means for politicians to use the tax code to favor supporters wrongly. The solution to the US tax woes is so simple a child could design it. Just like a child could come up with a way of having elections without any fundraising or money involved to eliminate that source of corruption.

The Progressive system the Progressives want is rigged to reward the politicians, not the people.

The poll was conducted in 2007. What would the poll say in 2011?

reply to post by ararisq


To be honest I enjoy a good infrastructure. I like driving on paved roads and walking on sidewalks rather than in the mud. I like street lights and traffic signs. I like using Interstates and am glad they are there. I like schools and having an educated population. I like having Fire Fighters, Police and emergency services. I like having jails to house dangerous criminals.

The alternative is pretty grim to ponder.

I realized I should have been clearer so I'm editing to add, I agree with you that it is important what the taxes are spent on also.

reply to post by Blaine91555


You are totally correct in this Blaine. It also reduces the chances concerning corruption. Just look at GE, Timothy Gietner, etc….

reply to post by sonofliberty1776


Some could argue that taxing consumption is bad. I live in America, and that is what we do best. If we stopped consuming, other countries would suffer. I'm starting to think that our economy isn't about production anymore. We export consumers to the world. Our "gift" to you, the world.

You do know the difference between the rich and poor in America is worse than Iran, right?
We are ranked 40 something. So yes, I'm all for a progressive tax.
You get rich in America by exploiting the system and other people. It's not about hard work. The only way a flat tax would work is if we completely restructured the entire system so that those who work hard actually get paid what they deserve. You don't know how hard the working class works if you say the rich work harder and deserve more.
Watch the movie "Metropolis" to see exactly what I'm saying. It's a classic from 1920 something.

"The mediator between the head and the hands must be the heart"

To say the rich work harder is extremely ignorant.

reply to post by sonofliberty1776


strawman arguement. People would still work. and if someone doesnt want to, someone will step until to fill their shoes gladly. Im for this, and a drastic cut in federal spending at the same time.

Fifty-four Nations of Happy people? What Earth was this?

Oh, well thankfully one poster noted that this was a Poll from 2007 and now I beg to question who did they poll? A year before the big collapse of the Dollar of 2008 and everyone was Happy, Happy, Happy!

I can see their smiling faces now!