3 ms·
This. In my opinion, fairness requires having skin in the game. Lots of people have a say in how money is spent via votes but are not feeling the burden of cont
by malandrew 6y ago
This. In my opinion, fairness requires having skin in the game. Lots of people have a say in how money is spent via votes but are not feeling the burden of contributing to that pot. Contributing proportionally would give them skin in the game and they would all of a sudden discover the importance of demanding fiscal responsibility from those that are governing.
The progressive taxation approach doesn't even leave those at the bottom better off. The market still uses price discovery to figure out prices. All the progressive taxation approach does is eliminate a cost and lower the price of labor to be equal to what labor is demanding. If labor had to also pay their fair share of taxes, they'd demand the amount they need plus the amount they need to pay in taxes.
An alternative that achieves fairness is to have no income tax and instead only have payroll taxes. This way no individual is bilked because they were successful.
I still prefer a flat sales tax because you shouldn't tax what you want to see more of in society, the labor to make society work, but only having a payroll tax would at least solve the fairness issue.
The only problem with the payroll tax approach is that the skin in the game expectation has one drawback. Those that are in most demand in the jobs marketplace is at the least risk of advocating for a higher payroll tax across the board. Raising the payroll taxes could make some roles no longer profitable and companies could cut those roles to achieve a better ROI.
- Nursie 6y ago> In my opinion, fairness requires having skin in the game. Everyone has skin in the game, it's called 'life'. > Contributing proportionally would give them skin in the game They do contribute proportionally, they have very little so that contribution is low. In general this is done because if you take the same proportion from the worst off as you do from the richest, the poor starve. > they would all of a sudden discover the importance of demanding fiscal responsibility from those that are governing. While they starve because of the new tax regime. I imagine the first thing they'll demand is that their taxes get lowered so that they can live, so back to square one. If there aren't just food riots first. Also it looks like you're mooting introducing some sort of unbreakable, unchangeable law so that people would demand other changes. I'm not sure that's how democracy works... > you shouldn't tax what you want to see more of in society You don't want commerce? You realise that to support your scheme, sales tax would have to go up to the region of 100%?