OT: Rating the President

[Phoenix-D]

Here's my concept, then..or rather my "hey, this would be a good idea" section.

1. No tax brackets. If the tax rate goes up as income goes up, make it do so -gradually-. Leads to 2..

2. No matter what, you make more money you -bring home- more money. A tax system that doesn't do this is almost the definition of unfair.

3. Simple is good. Unfortunately you get problems here. Simple means people try to weasel their way out of things. Laws are written in very specific anal ways for a reason unfortunately.

Phoenix-D

[Fyron]

Originally posted by Fian:
OK, so what is a fair tax system?

Something where people pay a fair share, not where the rich pay huge amounts of their income in taxes. You know, something more like a flat tax system. As it is, rich people pay a drastically higher percentage of income in taxes than poor people, but get much less in the way of benefits than they do. That is not fair in any way.

[ February 09, 2003, 07:11: Message edited by: Imperator Fyron ]

[Slick]

You folks might be alluding to a consumption tax.

Income tax taxes income, obviously, which in a way discourages more work because it puts you in a higher tax bracket making your harder work not worth as much. But you can spend as much as you want under this system (yes, most states have excise taxes too but this is theory). So basically the income tax system encourages more spending and discourages more work. Now why would you want a system that does that?

In a consumption tax system, you pay no income tax but you pay taxes on what you spend i.e. all taxes are excise taxes. In this system you are discouraged from spending and encouraged to work because your income is not taxed. People & businesses that consume a lot pay a lot. Most consumption tax proposals do not tax food & medical expenses. Let's see... less spending, more work & more saving... Isn't that a system that would make the economy strong?

Slick.

[ February 09, 2003, 08:09: Message edited by: Slick ]

[Fyron]

Only "normal" progressive income taxes discourage getting pay raises. Flat taxes and reasonable progressive income taxes (as in, the richest pay maybe 2x as much as the poorest that do not qualify for tax exemption for being below a poverty line) do not discourage that.

Let's see... less spending, more work & more saving... Isn't that a system that would make the economy strong?

That is a recipe for disaster. Spending is what makes the economy run. If people horde money, workers lose jobs. Store employees lose jobs. Everyone suffers.

[ February 09, 2003, 08:12: Message edited by: Imperator Fyron ]

[Slick]

Originally posted by Imperator Fyron:
Only "normal" progressive income taxes discourage getting pay raises. Flat taxes and reasonable progressive income taxes (as in, the richest pay maybe 2x as much as the poorest that do not qualify for tax exemption for being below a poverty line) do not discourage that.

quote:

---

Let's see... less spending, more work & more saving... Isn't that a system that would make the economy strong?

That is a recipe for disaster. Spending is what makes the economy run. If people horde money, workers lose jobs. Store employees lose jobs. Everyone suffers.

---

You should read some basic economics sometime.

[Fyron]

Why, because I know what a progressive tax system is and that hording money causes economic problems?

[Askan Nightbringer]

Originally posted by Imperator Fyron:
Only "normal" progressive income taxes discourage getting pay raises. Flat taxes and reasonable progressive income taxes (as in, the richest pay maybe 2x as much as the poorest that do not qualify for tax exemption for being below a poverty line) do not discourage that.

A payrise is still a payrise. I'm in the top Australian tax bracket which means I pay a hefty 47% tax on my income over $60k AUD and I've never felt "discouraged" about getting pay rises. I've only ever seen people get upset about pay rises when theirs was less than a co-worker who they believe does inferior work. Satisfication with income is always based on comparitive measures, never absolute.

Askan