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I've always thought that the central problem with a progressive tax code - though laudable - is that it takes the view that people don't deal with money in abso
by hackeraccount 9y ago
I've always thought that the central problem with a progressive tax code - though laudable - is that it takes the view that people don't deal with money in absolute terms.
For example: If I go hunting under my couch cushions I might find $1.50 in change. By that logic of a progressive tax code if I do the same activity on Bill Gate's couch I should find 3 or 4 million dollars.
Obviously that's insane. I would argue that it's insane because on some level everyone looks at a million dollars and thinks "That's a lot of money".
On top of that anyone encountering the sticky end of a progressive tax code is always confronted with the calculation of the cost of avoidance vs. the cost of the tax. And there's always a price you can pay to avoid a tax. It's generally based on the price of lawyers and the price of politicians.
Which isn't to say a progressive tax code isn't a good thing. Frankly I'm all for it. But to be equally frank how we raise the money for Government in this country is over thought. An unfair tax code that raises a reasonable amount of money is loads better then a fair one that raises an unreasonable amount of money.