Skylar
Diamond Member
- Jul 5, 2014
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Look, we impose fines to discourage some behavior. If you speed 60MPH in a 40MPH zone you get a fine. Go 80MPH and you might lose your license. And it discourages speeding.
So if you impose a fine, now called a tax, on earning money what happens? You discourage high earners. High earning people get that way because they generate lots of activity that others feed off of. Imagine how much advertising a successful real estate agent buys every year.
So why do we want to discourage that? We should make taxes regressive, with lower income people paying the highest rates to encourage them to work more.
And yet we have more high earners now than we did before the income tax. We have a more stable economy, with more years in expansion and fewer years in contraction than before the implementation of income tax. Not by a little either. But about double the expansion and half the contraction.
If your claims were valid, how would this be possible?