JakeStarkey
Diamond Member
- Aug 10, 2009
- 168,037
- 16,520
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- Banned
- #41
Not at all, SD. HJ is correct. Please restudy the issue.The suggestion is to establish a Regressive not progressive tax rate. Making more money is incitement enough.
The problem with a progressive income tax that increases is this. When a person makes more revenue they are not paying the same rate on old revenue. They are paying the new higher rate on revenue they were previously paying a lower rate. Let's say the increments are 10, 30, 70. Once a person crosses from 10 to 30 they now pay 30% on revenue they were only paying 10% on. So if you are only one dollar into the higher tax bracket you end upmoaying that rate on every other dollar before it which ends up being a huge tax increase.
Uh, that's not how it works.