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Observation 1: Nice idea, but what remains to be filled in is why people who earn 1M per year will want to give $145,000 to the gov. every year, instead of cont
by ivan_ah 11y ago
Observation 1: Nice idea, but what remains to be filled in is why people who earn 1M per year will want to give $145,000 to the gov. every year, instead of continuing to use N levels of ownership indirection and contribute-money-to-the-budget-like-right-now-this-year half of this amount? Or maybe even less if Investment gains or holding company? Not sure how income from rent counts.
So in terms of "let's cleanup the API" its a great idea, but how do you make the real estate owners and corporates pay all of a sudden? [1]
Observation 2: the minimum income before you start to get taxed, is a very interesting number. A half-step towards having a guaranteed minimum income for everyone, is to set this "target number" as the income where taxation starts. Thought experiment. If the tax-exempt portion of your income were increased to $15k, or $20k, how would that affect people's choice of occupation? The Hipsters will definitely be in---they're like "$20k tax-free, I'm like a lunberjack/lumberjess living out in the wilderness who pays no taxes; that's my beer and bike money and I don't need more." (Such an increase in the "personal amount" will make a big hole in the budget, but ask your self this, why are we taxing people who make $14k per year?)
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[1] http://www.blue-route.org/blog/wp-content/uploads/2014/09/3-individual-and-corporate-income-taxes-as-share-of-total-federal-revenue-1934-to-2015-national-priorities-project.png http://www.blue-route.org/blog/wp-content/uploads/2014/09/3-...