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by kukkamario 489 days ago
That is not how it works. You assume that the rich people can get as much net profit if income tax is higher due to progressiveness, which is not true. Also if there is a way to get more (gross) profit, they will use it regardless of the tax.

Profit of a company is small percentage of the moving money. Like 50c of $6 chipotle meal is profit and not all of that goes to the owner. Taxing owner at 50% rate instead of 25% would only increase cost a few cents. Same with landlords, there are fixed costs and loan costs that reduce profit. 100% of paid rent is not direct profit...

Actual issue of the progressive tax is truely rich people using tax evasion tactics to avoid it by structuring their income so that it belongs to some other tax category that doesn't have progressive tax.