Published on January 28, 2004 By jeblackstar In Politics
I've noted with growing concern the unfortunate tendency by some to gloss over or misunderstand the tax system and it's imposition, so in my own humble way I offer this:

There's this whole complex economic theory which essentially states that the "minimum wage" and by this I mean the lowest possible wage allowed will always be insufficient to support a family. So, in a total free market economy no one cares about that and allows people to starve because after all, as Scrooge himself says it depletes the surplus population. Of course, then as Marx wrote, and on this one point Marx was mostly right, the workers would rise up and demand better conditions. You can see this in the violence of the labor movement at the beginning of the 20th century. Hence the development of welfare systems, and the ludicracy of a flat tax. Flat taxes charge the same percentage of a persons income in tax, sounds great right? Well imagine if you will that it costs10,000 dollars a year to support a family of four, a man makes 15,000 dollars a year and therefore has 5000 dollars left over. Now a corporate VP making 250,000 dollars a year, working off the base minimum necessary to support a family, has 240,000 dollars left over. So, As a percentage of disposable income, the person making 15,000 dollars a year pays more in a flat tax than the corporate VP. I understand that VPs tend to spend more and the like, and that's their perogative, but in our little fiction it's only necessary to spend 10,000 dollars a year to support themselves. Hence a progressive tax structure, it's an attempt by the Powers that Be to even out the percentage of disposable income that is payed to the government. While it may seem fair therefore to cut the rich's taxes more than the poor, after all they pay more, as a percentage of their disposable income they are actually paying less. If anyone wants to see the math on this I'd be happy to provide it, but in the interest of not boring anyone I'll leave it off for now.

Cheers

Comments
on Jan 28, 2004

I am against a flat tax. People who make more can afford to pay more (even as a percent) in taxes.

What I don't like, however, are unscrupulous politicians who try to make it out that the rich don't pay much in taxes when in fact 54% of the taxes are paid by 5% of the people and half the adult population pays  effectively no federal taxes.

on Jan 29, 2004
Ah Hah! I knew I could count on you Brad to make a post here. The obvious rebutall to your arguement is that those 5% of the people make far more than 54% of the income in the US. And, of course unless you are one of those people who makes several million dollars a year, it's not a situation you yourself are in. If you are, I only point to My Favorite Republican, Arnold Schwartzenager, who, and I'm paraphrasing here, but not by much, enjoys paying lots of taxes because it means he's doing well.

Also, If you are counting that half the adult population, a number that is approximately 50-75 million people as paying almost no taxes as compared to those who pay 54% of their income, than you are correct, however, if you ask a majority of those people if they pay no taxes, I'm afraid they'd say they pay to much. And those people who in fact pay no taxes are living at or below the poverty line, or slightly above, a situation I'm sure you'll agree is a place where those people need their money far more than the government, need it to buy little things like, y'know food, shelter, power, clean water, etc. And not of course the truely major things, like the top 5%, such as fancy cars, private jets and multimillion dollar homes...

Cheers