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It's regressive because pretty much every tax other than income tax is regressive. the 61% that didn't pay income taxes spend all the money they make, so they p

It's regressive because pretty much every tax other than income tax is regressive. the 61% that didn't pay income taxes spend all the money they make, so they pay a much higher percentage of their income on sales tax, property tax (through rent), social security, gas taxes, tolls and stuff like that.

adgjlsfhk1 5y ago
Also having capitol gains taxed at a lower rate than income is regressive. Rich people aren't rich because they work. They're rich because they have money to invest. Our tax system should benefit people who work for a living over people that just pay other people to turn their money into more money.
- bingohbangoh 5y ago
  You're taxed when you earn the money already. Taxing again at the point you deploy it is double taxation. Many countries don't tax capital gains at all because of this fact. Moreover, you want people to deploy their capital in the economy. Hiking taxes on capital gains would massively disincentivize people. Unlike other taxes, capital deployment is a risk based economic activity: if you raise taxes, people will be less inclined to invest it on risky ventures as opposed to keeping it in very safe assets (e.g. bank accounts or real estate).
Aunche 5y ago
They're only regressive if you're not considering what people are getting out of their taxes. Gas taxes pay for highways. Social security taxes pay for your retirement. The US has one of the most progressive tax systems in the world. The only benefit we seem to get out of it is that the poor and middle class end up spending more money on consumer goods. In the US, property taxes are so low such that they are uncorrelated with rent. The properties with the lowest tax rates thanks to Prop 13 also have some of the highest rents.
- bingohbangoh 5y ago
  Property taxes are almost nonexistent in other countries normally thought of as having very high taxes (e.g. Sweden). [1] You may be thinking in California terms where property taxes are very low because of Prop 13. I can most assure you that this is not the case in New Jersey or New York. [1]: see point #3 -- https://www.vox.com/2016/4/8/11380356/swedish-taxes-love https://www.vox.com/2016/4/8/11380356/swedish-taxes-love

adgjlsfhk1 5y ago

Also having capitol gains taxed at a lower rate than income is regressive. Rich people aren't rich because they work. They're rich because they have money to invest. Our tax system should benefit people who work for a living over people that just pay other people to turn their money into more money.

bingohbangoh 5y ago
You're taxed when you earn the money already. Taxing again at the point you deploy it is double taxation. Many countries don't tax capital gains at all because of this fact. Moreover, you want people to deploy their capital in the economy. Hiking taxes on capital gains would massively disincentivize people. Unlike other taxes, capital deployment is a risk based economic activity: if you raise taxes, people will be less inclined to invest it on risky ventures as opposed to keeping it in very safe assets (e.g. bank accounts or real estate).

Aunche 5y ago

They're only regressive if you're not considering what people are getting out of their taxes. Gas taxes pay for highways. Social security taxes pay for your retirement. The US has one of the most progressive tax systems in the world. The only benefit we seem to get out of it is that the poor and middle class end up spending more money on consumer goods. In the US, property taxes are so low such that they are uncorrelated with rent. The properties with the lowest tax rates thanks to Prop 13 also have some of the highest rents.

bingohbangoh 5y ago
Property taxes are almost nonexistent in other countries normally thought of as having very high taxes (e.g. Sweden). [1] You may be thinking in California terms where property taxes are very low because of Prop 13. I can most assure you that this is not the case in New Jersey or New York. [1]: see point #3 -- https://www.vox.com/2016/4/8/11380356/swedish-taxes-love https://www.vox.com/2016/4/8/11380356/swedish-taxes-love