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If you earn $10MM and you get taxed 80%, you've still netted millions.
by themacguffinman 9y ago
If you earn $10MM and you get taxed 80%, you've still netted millions.
- nightski 9y agoRight but your costs are not reduced by a similar amount. When I purchase things or take out a loan for a personal expense I have to pay that off with post-tax dollars. So I have to earn more money to buy the same things. In this regard a large tax greatly reduces purchasing power and makes it less worth the trouble.
- themacguffinman 9y agoThat's why taxes are typically progressive instead of flat. Progressive taxes only significantly impact your purchasing power for luxuries while minimally curtailing your budget for essentials and regular goods.