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Low income individuals spend a far greater share of their income on goods that would be subject to VAT than high-income individuals. Eliminating income tax woul
by MrRadar 3y ago
Low income individuals spend a far greater share of their income on goods that would be subject to VAT than high-income individuals. Eliminating income tax would shift the burden of paying for government even more to the people who can least afford it.
Ideally, taxation should be a mechanism that redistributes wealth within society to be more equitable which ultimately benefits everyone, even the wealthy, by increasing overall economic growth. Income tax is a very good mechanism to achieve that goal (though definitely not perfect) and I agree with Thomas Piketty that we should add a small wealth tax on the very wealthiest individuals.