The argument over tax rates always focuses on the economics or fairness. Lower tax rates are said to bolster economic growth especially on higher earners. Fairness dictates that high earners ought to pay their fair share even if it means the percentage is above and beyond what everyone else pays to level the playing field.
There is a fundamental rule of law that is being ignored here. The economic arguments will go on forever but tax laws are unlike any other in that they are applied unevenly. If a poor person came up with a invention and became a millionaire of course that person would pay more dollars in tax even if his rate were the same but why pay more then that? The invention could have made life easier for millions or people but because the person became wealthy the share of his income is taxed greater. Its not as though the wealthy need more government then anyone else, why pay more for it?
When one person pays a higher rate then another he or she is being levied an economic fine, a production and innovation speeding ticket. Each law that is passed, everyone would agree, should treat everyone the same way. Its called equal protection under the law. One person pays 28% of their income to taxes while another pays 35%, why? Even if the rate were 28% for all the higher earner will pay more dollars in taxes but what is the legal rationale to pay the extra 7%.
Most people are not rich and it would be nice if all of us were. But being rich means being in a class of society that is in a minority. Since they don't have the votes it means that the rest of us could just out vote them and take their money. It's difficult to look at this as a civil rights issue because after all these people are rich, they have everything. Does that mean that we have to jettison our principles of equality under law. If you go too fast on the highway and get caught you pay a fine. If you make too much money you don't have to wait for a trooper to stop you just file your tax returns, your fine is built into the law. No one has the right to anyone else's money or property and no one should have to be penalized for being productive. Why do we accept that just because some people have more then others that we must ignore basic principles of how laws are applied to citizens?
Comments
It's real easy though: since the laws are indeed unevenly interpreted, the lower income people are screwed over more than the ones who can get away [and they do] with things poor people can't.
Since the entire culture is founded on the debasement of manual labour while expensive suit efforts are worth more [hey look, this piece of paper says it's worth 100 million, huzzah!], lower income people -always- get the short end of the stick. The system is designed that way.
The whole global economy is geared to the needs of the wealthy, the less well-off can barely scratch a crumb from the table.
The rich, you know the 'more productive people' grab more money. Since they have more money, they should pay more taxes.
I'll make a specific exception for those who really are more productive and started their own business which they run very well. Their success is not an accident, they should indeed be able to keep their money.
But a hedge fund manager, you know: someone who sells something he doesn't have to someone who doesn't want it for money neither of them have at a price they just grabbed out of the air, people like that are not worth the billion dollars they give themselves.
But hey, I'm not going to step into the way of necessary tax reform. Let's do it, let's tax everybody the same. However, we have to keep the real burden of taxes in mind. We can't tax people who make very little money too much, or they simply won't have any real money [well, whatever passes for it these days] left to pay the bills. So, we have to mark down the tax burden because it's going to be -real- easy to out tax the very lowest incomes.
Let's bring the whole tax burden down to 1%. Come on, everybody can spend 1% of their income on taxes.
Challenge: run a country on the taxes that are raised that way. Extra bonus if the rich people don't come complaining that none of the machinery of society works anymore.
OK let's even things up.
Make rich folks pay the same tax rates as poor folks.
Make rich folks use the same court appointed lawyers as poor folks.
Equal protection.
I like it!
"since the laws are indeed unevenly interpreted, the lower income people are screwed over more than the ones who can get away [and they do] with things poor people can't."
Such as what? If all laws are applied in equal manner no one should get away with anything regardless of income
"Since the entire culture is founded on the debasement of manual labour..."
No its not, that's ridiculous.
"while expensive suit efforts are worth more [hey look, this piece of paper says it's worth 100 million, huzzah!], lower income people -always- get the short end of the stick. The system is designed that way..."
Just a restatement of nonsense.
"The whole global economy is geared to the needs of the wealthy, the less well-off can barely scratch a crumb from the table..."
How is it "geared"? and if the less well off can barely scratch a crumb then that is what it means to be poor. The trick is to create opportunity in society so that they are not poor. The US has done that better then anyone else.
"The rich, you know the 'more productive people' grab more money. Since they have more money, they should pay more taxes."
Rich people, as you call them, create money they don't make it or grab it from others.
"I'll make a specific exception for those who really are more productive and started their own business which they run very well. Their success is not an accident, they should indeed be able to keep their money."
How generous. You talk like a king. You'll let someone keep their money if you determine he's worthy of it? How about "I'll let a black man drink from my fountain..." see, there is a elite perspective on this, my point is equality under the law.
"But a hedge fund manager, you know: someone who sells something he doesn't have to someone who doesn't want it for money neither of them have at a price they just grabbed out of the air, people like that are not worth the billion dollars they give themselves."
We don't have the right to anyone else's money and we shouldn't means test anyone who makes any portion of it.
"But hey, I'm not going to step into the way of necessary tax reform. Let's do it, let's tax everybody the same."
Now your talking, I'm with you.
"However, we have to keep the real burden of taxes in mind. We can't tax people who make very little money too much, or they simply won't have any real money [well, whatever passes for it these days] left to pay the bills."
I'll admit that you have a point and that it is a tricky thing to blanket a say, 17% tax on everyone and thereby suddenly raise taxes on lower earners. Economically you can just keep the exclusion, but on the equal protection front this is difficult.
"Let's bring the whole tax burden down to 1%. Come on, everybody can spend 1% of their income on taxes."
What would this do to the economy? For one it would give wealthy people and big business reason to expand and hire people and it will create a larger amount of people paying taxes. Maybe there is a compromise here, you probably are being sarcastic here but maybe there is a rate everyone can pay that will be fair to the poor and yet create greater opportunity for them.
i agree! i've written about it on my plusaf dot com website, under "Lessons" and "Flat Tax."
and you should allow links and urls, too...
:)))))
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