| > What does 'fair' mean, though? Just remove 'fair' from the sentence. > a) The marginal utility of money is greatly increased when you don't have much of it. A 15% tax on $20k a year will lead to eviction, hunger and health problems, creating social ills that we'll need government programs to deal with. Or they'll just not pay the tax, so again with the prisons. And again, the overall tax needs to be increased to deal with a stupid choice in the tax code. This is inefficient and arguably unfair. I disagree. If you know exactly how much money you have to pay each month, you can budget for it. A well planned budget can make $20K a livable income. I grew up in a family of 4 at that level. We tithed 10% of our income on top of the taxes we paid. We never were on Government welfare. And I never went hungry or didn't have a home. It wasn't easy, lots of people helped us, but I never realy realized we were "poor" until I went to college. Sure it's just my family, but I'm pretty sure a lot of other families I knew as a kid were in similar situations. > b) Furthermore, if we don't want to punish the poor for being poor, we have to reduce the ratio, meaning we greatly reduce investment in infrastructure, education, etc, mainly as a result of undertaxing the wealthy to avoid punishing the poor. This also seems hella backwards. The goal is to help make it so that the poor are no longer poor. Government overspending, discriminatory taxation, loophole filled regulation, etc, helps mess things up so that it's really hard for the poor to stop being poor. Fixing the tax code would be one step in solving the overall problem. |