Taxing Incomes
The United States taxes incomes but not all income is treated equally. I'm not sure this is the best way to go in practice but in theory it makes sense. Some incomes in size and source should be treated differently by the tax man. One size does not fit all and actually one size does not fit most. The idea of a flat tax where a person pays a percentage of his income isn't always as progressive as it might seem. Folks with a lot of income may pay more in taxes but the other question of how much is left after taxes and if all the bills are paid still needs to be answered.
Some folks think the power to tax is the power to destroy. If you taxed a person's income beyond 50% of the last dollar earned there is less incentive to increase earnings because they might think they are "working" for someone else. Marginally that is correct and if a body needs to work harder to earn the last dollar than first dollar, problems will soon come.
A part of the problem is determining how much government you want, or we want. This is not a particularly easy thing to do. It isn't exactly easy to figure out how much that will cost either. Even the rules we establish can have unintended costs. Another issue is whether a tax system promotes public goods or subsidizes the accumulation of private wealth and that is a thorny issue.
One of the biggest reasons or a progressive tax system is matching taxes with the ability to pay. More income should mean a greater ability to pay taxes and the poor would pay less taxes. This should lower the gap in incomes and wealth between the rich and the poor. This is part of a good tax system. All income should be taxed equally. This is another part of a good tax system.
Income taxes should be easy to understand and easy to collect.
The taxing of income is only part of a good tax system. As things go there will be a need for flexibility and agreement that adjustments in the various kinds of taxes to insure that governmental services are paid for and the collective sacrifice is minimized and work is rewarded appropriately.
If the rich feel they are over taxed because they pay more taxes, I'm ok with that. They will have more money after taxes as well and they can feel good because they support the system. The less wealthy and the poor should always be better off if they work and save their money.
The current system isn't working very well. The proposed changes also seem to be lacking. The gaps in wealth and income has of been adequately addressed and to add to an already large deficit isn't a good way forward.
Some folks think the power to tax is the power to destroy. If you taxed a person's income beyond 50% of the last dollar earned there is less incentive to increase earnings because they might think they are "working" for someone else. Marginally that is correct and if a body needs to work harder to earn the last dollar than first dollar, problems will soon come.
A part of the problem is determining how much government you want, or we want. This is not a particularly easy thing to do. It isn't exactly easy to figure out how much that will cost either. Even the rules we establish can have unintended costs. Another issue is whether a tax system promotes public goods or subsidizes the accumulation of private wealth and that is a thorny issue.
One of the biggest reasons or a progressive tax system is matching taxes with the ability to pay. More income should mean a greater ability to pay taxes and the poor would pay less taxes. This should lower the gap in incomes and wealth between the rich and the poor. This is part of a good tax system. All income should be taxed equally. This is another part of a good tax system.
Income taxes should be easy to understand and easy to collect.
The taxing of income is only part of a good tax system. As things go there will be a need for flexibility and agreement that adjustments in the various kinds of taxes to insure that governmental services are paid for and the collective sacrifice is minimized and work is rewarded appropriately.
If the rich feel they are over taxed because they pay more taxes, I'm ok with that. They will have more money after taxes as well and they can feel good because they support the system. The less wealthy and the poor should always be better off if they work and save their money.
The current system isn't working very well. The proposed changes also seem to be lacking. The gaps in wealth and income has of been adequately addressed and to add to an already large deficit isn't a good way forward.
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