2 ms·
Yes, you’d be taxing the poor at the expense of the rich even more than today’s tax system, since spending doesn’t scale anywhere near linearly with income. Th
by eschaton 8y ago
Yes, you’d be taxing the poor at the expense of the rich even more than today’s tax system, since spending doesn’t scale anywhere near linearly with income.
This is also why a “flat tax” is bad compared to increasing marginal tax rates. Remember that most systems don’t tax all income at the same rate; they tax anything above $a ie $(a-0) at x%, anything above $b and only that $(b-a) at (x+2)%, and so on.
Anti-tax fundamentalists use terms like “tax brackets” to trick people who don’t understand this system into thinking it’s possible for eg one’s net income to go down as they earn more money. (“Make this much, and you’ll be in the y% bracket!”) Don’t buy into this, it’s not true.