Why Income Tax?
Haven't posted for ages(possibly because the only person who ever comments on this blog is Neo, and it's faster to reach him by commenting on his blog, even when it has nothing to do with the topic at hand.)... but here's something I just read on the Onion
"We tried an income-based tax for nearly a century and look what it brought us: greater economic stability and government accountability. Clearly, we must explore other options."
posted by TheLoneAmigo @ 8:42 pm
4 comments
4 Comments:
Hmm... I'll check that out...
As for income taxes, I would suggest another tax system.
Now, dropping for a moment the issue of whether the system should be progressive or not, let's look at another possibility: a flat-rate sales tax.
Such a tax would minimize tax evasion, make paying taxes simpler by saving time, make the IRS nearly obsolete, and yet it could draw the same amount of money. What's not to love? Everyone wants to spend less time on taxes, and please name one person who loves the IRS.
Now, if the tax were flat-rate, it would greatly stimulate the economy. Many European nations (specifically, Eastern European) have in recent years switched to a flat-rate tax. In that time, their economies have grown faster than the economies of similar nations with progressive tax systems.
One reason a flat-rate tax works so well is that it allows people to move up in the world. Hard work brings rewards, under such a system. With progressive taxes, let's say that work brings in $100. Someone wishes to make more money, so they work harder. This harder work brings in $150, and this person is happy.
Unfortunately, this person finds out that he lives under a progressive tax system, and the extra $50 that he made bumped him into a higher tax bracket. Now he's working harder and longer hours, but the higher taxes in his bracket mean he only takes home a little bit more than he was earning before. In essence, a progressive tax devalues work.
This is why we have so many families where both parents work, usually having full time jobs. However, these families often are no better off than families where just one person works, because there is little hope of improving one's economic position. The harder you work, the less profitable your work becomes for you.
That's why I would support a flat-rate sales tax. Just one tax would simplify things greatly, and would minimize tax evasion, and a flat-rate tax would re-institute the American dream, the reason people originally immigrated to America. The land of opportunity should, after all, bring opportunity.
Cheers!
Neo
Um, not true. At least about income taxes.
Especially in America, taxes aren't so progressive that somebody who gets kicked up to another income bracket (of which their are, like, four: 0-5000, 5000-20000, 20000-50000, 50000-10000, 10000+ or something like that) looses their additional income. Let's look at your scenario. Obviously there's two tax brackets: 0-100 and 100+. Say the 0-100 bracket has a 10 percent tax, and 100+ bracket has a 20 percent tax(which is not the amount of progression, it's defintely not as much as 2). If I am earning $100 dollars, I'm taking home $90 and paying $10 dollars tax. If I'm earning $150, I'm taking home $120 and paying $30... an increase of $30 in take home pay, not really that bad relatively(a 1/3 gain as opposed to a 1/2 gain for no-tax). And seeing as tax ISN'T that progressive (the likelihood of a raise putting you into a higher income bracket is rather small, except maybe at the very lowest levels of the scale.), it's not actually that bad.
I would suggest that we abolish tax altogether and live in an extremely idealistic world on the verge of financial ruin because we implore self indulgence and lavish living.
Btw, i also read your journal, but i'm too lazy to get into some righteous self serving debate that derives soley from opinions so... it's best i don't comment.
If only everyone saw the same shaded of black and white ya know?
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