Why progressive Taxation is a mere myth

[justoffal]

In the example used, in real life Harry would have told Tom and Dick to screw off with their proposals and put up a fence/security system around his own house.

Most likely

 

[Harpy Eagle]

I realize that posting rules require personal input....but in deference to the link I don't want to ' get in the way" so to speak. This article pretty much demonstrates the folly of the concept.

The Inequity of the Progressive Income Tax

Class Wars: A Parable

www.hoover.org

While you link gets a tad wordy and long winded it is very thought provoking.

A few things struck me while I was reading it.

1. I am not sure "fairness" is really something to be taken into account. Things being "fair" is (forgive the pun) a fairy tale we tell our kids, but know does not really exist in the real world.

2. A forth factor in determining income is luck. Had Bill Gates been born 10 years later he could have been a success, but he would have missed the window for getting in the ground floor for PCs.

3. Out of all the tax types listed, I favor the "proportionate or “flat” tax". I have long been a proponent of getting rid of all tax expenditures. Very much a "if you make this much, you pay this much". No credits or deductions or what have you. We should honestly be able to file taxes on a post card....or not file at all since the Govt already knows how much we made.

4. I am not as sold on the consumption tax, but do agree it would be better than the jacked up system we have now

 

[Votto]

My point exactly. The system does not work. I believe you would get much more from the wealthy if you had a simple consumption based tax. They consume more by habit and opportunity. In fact I believe it's the only way you will ever get them to contribute proportionately.

You assume they want the system to work

The goal of the DNC is extreme poverty and wealth.

That will be their utopia, as it is in all Marxist regimes.

Currently, they are destroying the Middle Class with inflation and soon to expire Trump tax cuts.

 

[OKTexas]

Tom
Dick
Harry

Yes......We get the claim,
NOW summarize please.

What is your point?

It's really simple, the govt treats property of the exact same value differently, just because of where it falls in an arbitrary stack. No dollar is worth more than the next, so why are they taxed differently? How is that an equal application of the law? I'm sure you would prefer the following.

The 10 pillars of communism, as detailed by Karl Marx, include12:

• Total abolition of private property
• Heavy progressive income tax on everyone
• Elimination of rights of inheritance
• Property rights confiscation
• State-centralized banking system
• Government ownership of transportation and communication vehicles
• Abolition of property in land and application of all rents of land to public purpose
• Confiscation of the property of all emigrants and rebels
• Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly

.

 

[jwoodie]

The Inequity of the Progressive Income Tax

Class Wars: A Parable

www.hoover.org

One of the biggest inequities in the current tax system is that high income earners don't have to pay Social Security taxes on their income over the SS "cap." This is partially offset by graduated income tax rates, but this results in a disjointed tax system that the wealthy are able to manipulate to their benefit.

What if people with incomes below the cap were excused from the double taxation of Social Security and Income tax? All income above that level would then be taxed at a flat rate of, say, 33%. How would that work out? I think a lot of middle class people would benefit from this more equitable system.

 

[Oddball]

I realize that posting rules require personal input....but in deference to the link I don't want to ' get in the way" so to speak. This article pretty much demonstrates the folly of the concept.

The Inequity of the Progressive Income Tax

Class Wars: A Parable

www.hoover.org

Income taxation is a scam and hustle third only to prostitution and fiat "money".

 

[Oddball]

One of the biggest inequities in the current tax system is that high income earners don't have to pay Social Security taxes on their income over the SS "cap." This is partially offset by graduated income tax rates, but this results in a disjointed tax system that the wealthy are able to manipulate to their benefit.

What if people with incomes below the cap were excused from the double taxation of Social Security and Income tax? All income above that level would then be taxed at a flat rate of, say, 33%. How would that work out? I think a lot of middle class people would benefit from this more equitable system.

Income taxation was never designed to be equitable.....That's the entire hustle.

 

[Toddsterpatriot]

One of the biggest inequities in the current tax system is that high income earners don't have to pay Social Security taxes on their income over the SS "cap." This is partially offset by graduated income tax rates, but this results in a disjointed tax system that the wealthy are able to manipulate to their benefit.

What if people with incomes below the cap were excused from the double taxation of Social Security and Income tax? All income above that level would then be taxed at a flat rate of, say, 33%. How would that work out? I think a lot of middle class people would benefit from this more equitable system.

One of the biggest inequities in the current tax system is that high income earners don't have to pay Social Security taxes on their income over the SS "cap."

They only receive benefits "up to the cap". So how is that an inequity?


If they paid twice as much, they'd be entitled to about twice as much.

 

[jwoodie]

One of the biggest inequities in the current tax system is that high income earners don't have to pay Social Security taxes on their income over the SS "cap."

They only receive benefits "up to the cap". So how is that an inequity?

Try making it voluntary above the cap and see how many would join.

If they paid twice as much, they'd be entitled to about twice as much.

High earners' benefits per tax dollar are only about 1/2 that of low earners' benefits. In other words, you have to pay four times the SS tax to receive twice the benefits.

 

[jwoodie]

Income taxation was never designed to be equitable.....That's the entire hustle.

You're missing my point. Individuals who earn $400k pay a lower combined (SS and Income) tax rate than those who earn $200k.

 

[Toddsterpatriot]

Try making it voluntary above the cap and see how many would join.

High earners' benefits per tax dollar are only about 1/2 that of low earners' benefits. In other words, you have to pay four times the SS tax to receive twice the benefits.

Try making it voluntary above the cap and see how many would join.

If they do, how does this "fix" the system?

High earners' benefits per tax dollar are only about 1/2 that of low earners' benefits.

I know it's less; I'd be shocked if it was 50% less. Link?

 

[Toddsterpatriot]

You're missing my point. Individuals who earn $400k pay a lower combined (SS and Income) tax rate than those who earn $200k.

The point is, why count SS tax when measuring "fairness"?

 

[Oddball]

You're missing my point. Individuals who earn $400k pay a lower combined (SS and Income) tax rate than those who earn $200k.

No, I get the point entirely....Income taxation never ever ends up being equitable.

It's a con game from the start.

 

[Toddsterpatriot]

You're missing my point. Individuals who earn $400k pay a lower combined (SS and Income) tax rate than those who earn $200k.

Look at the numbers for a single filer.
You're wrong.