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Payroll taxes and sales taxes are regressive. Taxes on income earned from possessing wealth are vastly lower than taxes on income from doing work.
by standardUser 5y ago
Payroll taxes and sales taxes are regressive. Taxes on income earned from possessing wealth are vastly lower than taxes on income from doing work.
- zionic 5y agoA just tax would be a consumption tax. Rich people consume more, so it makes sense and is fair to pay more to a society you consume more from. If you make a lot of money and live frugally why should you pay more?
- thehappypm 5y agoNo, that's not really fair. Someone poor might spend all their income on consumption to stay alive. Someone rich is going to save a lot of their income. Effective tax rates would be higher the poorer you are.
- standardUser 5y ago"A just tax would be a consumption tax." I don't want a just tax I want a tax system that is effective. When vast amounts of wealth continually become concentrated in the hands of a tiny amount of people, the only effective tax regime is one that extracts wealth from the people who have all the wealth.
- bingohbangoh 5y agoIncome taxes account for a much higher proportion of tax revenues for the government -- like a lot lot more. Think twice as much.
- standardUser 5y agoObviously that depends on which level of government we are talking about. Local governments are usually not funded by income taxes, same with a lot of state governments. They are almost entirely funded by more regressive taxes.