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My personal problem with regressive policies is not that it effects peoples quality of life, rather that it affects the lives of their children. People that did
by cluda01 15y ago
My personal problem with regressive policies is not that it effects peoples quality of life, rather that it affects the lives of their children. People that did not have a choice about which family they are born into.
Consider my own personal story. I come from an upper-middle class family. During high school I wasn't particularly motivated to excel academically and as a consequence didn't get particularly good grades in courses that I should have if I had invested the appropriate time and effort into studying. My parents response to this situation was to hire a tutor and force me to sit down with said tutor and study several hours a week. As a consequence I ended up getting better grades than I should have simply because my parents had the disposable income to spend on tutors. People from disadvantaged backgrounds do not get this same benefit. As a consequence I go on to university and end up getting a higher position on the totem pole because of my parents wealth. The kid who comes from a disadvantaged background and is in the same academic position as me does not get that kind of second chance.
>The next closest "fair" thing to me is a retail sales tax, provided that everyone is provided a stipend to cover the tax paid on basic living expenses.
Consumption taxes are regressive because they penalize the spenders. Bill Gates doesn't spend nearly as much money as he earns and as such pays a lower effective tax rate than someone who makes $30,000 a year and spends it all to support their family.
- rmrm 15y ago>Consumption taxes are regressive because they penalize the spenders. Bill Gates doesn't spend nearly as much money as he earns and as such pays a lower effective tax rate than someone who makes $30,000 a year and spends it all to support their family. You are ignoring the part he put in about the stipend to cover tax on basic living expenses. With that included, the $30K spender will pay a much lower effective tax rate than Bill Gates. Making a flat consumption tax progressive in practice is a very simple solved problem --- there might be other arguments against a flat consumption tax but it being regressive is not really one of them. A rebate or prebate that covers the tax up to a certain dollar amount per person solves it nicely.
- orangecat 15y agoYou're never going to get rid of the advantages of being born into the right family. Money is a relatively minor component; your major advantage was that your parents actually cared. If the Ministry of Equality had outlawed private tutors, your parents would have tutored you themselves, still giving you an "unfair" advantage over kids with less responsible parents.