Saturday, July 11, 2009
Tax the Rich
I look on income taxes as the "rent" for living is such a great country. I don't eagerly pay them, but I am perfectly willing to pay my fair share, which recently was in the second tier of top rates and will migrate up due to my fortuitous marriage (economically speaking of course, there is no money value you can place on true, deep and abiding love).
Of course the rich will pay more taxes on their income because the percentage taxed on higher incomes is of course higher. But that there is a tier system, with higher income earners paying not just more, but more at a higher rate, is a moral sink hole. There is no logical justification other than there is more there for the government to confiscate. Certainly the idea that the rich take more governmental services is demonstrably wrong. The rich rarely cash an unemployment or welfare check. They are less involved than the poor in the various governmental services and systems, such as the criminal justice system. They are net tax givers; yet the Democratic elite want them to give involuntarily even more. Moral bankruptcy is a kind way to describe that so called thinking.
A flat rate, which motherfraking Russia has, Russia!, is the fair way to go of course (since a consumption tax seems unachievable) because everyone pays rent at the same percentage of his or her income. If we were to cut the corporate taxes to half or more and go to a 15% flat rate with few deductions, we would soon lead the world out of the doldrums of our current recession. Everyone is willing to work harder if he or she gets to keep the overwhelming bulk of the fruits of their labor.
As it is now, the top 1% pays about 40% of federal income tax; the top 5% pays about 60% and the top 10% pay about 70%. Yet our demagogic leaders say that's not good enough; that's not paying their fair share. The lowest half of the income earners pay a whopping 3% of federal income taxes. Yeah, that seems fair.
The down side of confiscating the rich citizens' income is that they will quit, go 'Galt', shelter their income or leave the country with the corresponding bad economic effect that will have on the area they once inhabited.
Tax the rich even more. An idea whose time has passed logically and morally, yet which seems all the more popular now. More's the pity
Labels: progressive taxation
To ensure that people exempt from income tax paid something to the feds, you could impose a very low federal consumption tax (e.g., 1%) on nonmedical and nonstaple food purchases.
Keep that in mind.