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I think that’s a different definition of fair than I was using. I think that logically what you are saying (perhaps sarcastically) is correct - the fairest of a
by larrywright 8y ago
I think that’s a different definition of fair than I was using. I think that logically what you are saying (perhaps sarcastically) is correct - the fairest of all taxes would be a flat amount. I don’t think that’s necessarily the goal here. So perhaps I should restate my comment as “A fairer tax is a flat tax”.
Ultimately, I think that the tax structure that AOC is proposing is punitive. If you’re successful, we will punish you for that success. I am not anywhere near a tax bracket that would be impacted by her proposal. I don’t really expect to be in my lifetime. But I don’t think it’s fair to punish someone for achieving success in life. Everyone should pay their fair share, but a flat percent-based tax already does that.
One other idea that I like (although haven’t studied enough to determine its feasibility), is to do away with the income tax altogether (or make it very low) and tax consumption. Exempt the necessities of life, like food, but everything else has a national sales tax applied to it. This has the nice benefit of rewarding people for saving rather than spending.
- deleted 8y ago[deleted]
- tptacek 8y agoA private equity partner who makes $10,000,000 a year and pays 30% on it pays $3,000,000 to the government. A custodian who makes $50,000 a year and pays 30% on it pays $15,000, just 0.05% of what the investor does --- the investor pays 200x more than the custodian, simply for being more successful. By your logic, how could a flat 30% tax (really, a percentage tax set at any level) possibly not be "punitive"?
- larrywright 8y agoPerhaps it’s just my perspective, but I don’t think a flat % is punitive. Maybe it is, but it’s surely less punitive than a progressive tax plan.
- lovich 8y agoCould you please clarify how it is less punitive? We have given reasons why we think a flat tax is not fair given the marginal value of a dollar compared to low income vs high income. I would like to hear your reasoning