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"The less income someone has, the more taxes cut into basic living expenses (because a greater portion of that person's income is spent on basic needs)." Cover
by roel_v 14y ago
"The less income someone has, the more taxes cut into basic living expenses (because a greater portion of that person's income is spent on basic needs)."
Covered by Milton Friedman's proposal of a flat tax with a minimum standard of living deductible, e.g. 10k USD. Furthermore, those making less than that 10k would get the 'refund' as some sort of social security. Developed in his book "Capitalism and Freedom".
"I'm not very good at describing this idea yet,"
What your describing is, as far as I can tell, the concept of "marginal utility".
- gadders 14y agoOh god. Don't give them a refund, just make the first X,000 tax free. That's better than circulating the money through the hands of a bunch of bureaucrats.
- MordinSolus 14y agoI think the act of actually paying a tax is quite important, despite the bureaucratic overhead. For the same reason, I think payroll taxes and the like should be directly paid by checks (not just deducted from pay and handled by the employer). This way, a person would actually have that money and then have to commit the physical act of giving their money to the government instead of just seeing it as money not in their paycheck.