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Your proposed fix would make the 1% completely happy. The poorest people spend 100% of their income and thus 100% of their income would be subject to that tax.
by tasty_freeze 3y ago
Your proposed fix would make the 1% completely happy. The poorest people spend 100% of their income and thus 100% of their income would be subject to that tax. Rich people invest and spend only a small portion of their income, and so only a small portion of their income would be subject to a tax.
- hellojesus 3y agoThe taxes should reflect the luxury of the purchase. That was the entire goal of US federal taxes prior to the country-ruining 16th Ammendment.
- hajile 3y agoWhen rich people invest, that means they are buying something. That thing gets taxed because they bought it. When they want to sell it to get a profit, someone has to buy it and pay taxes (factoring that tax into the equation also lowers selling price which is effectively a tax too). Poor people spend MOST of their income on their primary residence, food, utilities, and a couple other staples. You could simply eliminate taxes associated withe residences under X amount, taxes on staple foods, residential utility bills under a certain amount, etc. At that point, poor people would be paying few taxes while rich people would be forced to pay for all the things that make it worth being rich.