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As a nation, we've decided that we like things like infrastructure should be paid in part by the federal government. We've also decided we want to have a milita

As a nation, we've decided that we like things like infrastructure should be paid in part by the federal government. We've also decided we want to have a military that spans the globe, able to support regular operations as well as two wars with presences in over 50 countries costing over 600 billion dollars, not even counting the extra war supplemental or military retirement benefits. The fundamental fact is that the poor do not make enough money to pay for all this. Further, it is the wealthy that most benefit from the government's services -- without the roads, without the extensive police network, commerce would be much more difficult. Thus, it makes sense that the wealthy, who are most able to afford taxes, would pay for most of it. (When you tax someone to the point where they cannot afford food or shelter, you will see revolution and civil war. Few make money in that situation. Thus, progressive taxes are the most likely in a wealthy society. (Feudalism works on regressive taxation as an alternative.) Income is one of the easiest methods of progressive taxation.

jackfoxy 16y ago
The income tax system is only superficially progressive. Two examples: 1) Everyone's earned income below about $105K has an additional 12.1% tax called Social Security. Half of that is disguised as the employer contribution, but it still has an impact on the economic activity available to poorer people in terms of wages offered, and even the number of jobs offered. Social Security benefits are paid from the general fund, and Social Security taxes are paid into the general fund. This is a regressive tax. The only distinction is the benefits you eventually draw are somewhat determined by your contributions. 2)The truly rich (I'm not talking about couples in expensive metropolitan areas earning $250K) have the luxury of great discretion in regards to when, how, and even IF they take income. ...and we haven't even talked about the underground economy, which by definition does not pay income tax. ...and let us not forget all the tax cheats, the greatest of whom got a Presidential pardon. http://en.wikipedia.org/wiki/Marc_Rich http://en.wikipedia.org/wiki/Marc_Rich

jackfoxy 16y ago

The income tax system is only superficially progressive. Two examples: 1) Everyone's earned income below about $105K has an additional 12.1% tax called Social Security. Half of that is disguised as the employer contribution, but it still has an impact on the economic activity available to poorer people in terms of wages offered, and even the number of jobs offered. Social Security benefits are paid from the general fund, and Social Security taxes are paid into the general fund. This is a regressive tax. The only distinction is the benefits you eventually draw are somewhat determined by your contributions. 2)The truly rich (I'm not talking about couples in expensive metropolitan areas earning $250K) have the luxury of great discretion in regards to when, how, and even IF they take income. ...and we haven't even talked about the underground economy, which by definition does not pay income tax. ...and let us not forget all the tax cheats, the greatest of whom got a Presidential pardon. http://en.wikipedia.org/wiki/Marc_Rich http://en.wikipedia.org/wiki/Marc_Rich