Quote:
Originally Posted by Neal Stevens
Alas, why can't we make it simple and just have all individuals pay a flat rate on their income, say 15%. No exceptions, no loopholes, no deductions.
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Hey, where would all the accountants work?
Well I believe, that we are fundamentally living in an age of high social mobility. It is easier than ever for one to simply pack up, and move.
The nation state has always been a monopoly. There is only one in a given location. You must pay up the taxes, and you must accept their "services" (i'm sure there are criminals out there who would "refuse" the "policing" service). Thus nations have always been able to get away with a lot. You can't even establish competition! (hey, if you want to start your own government, the government calls you a rebellion and sends in the army) Thus, I would say, that nation states have once enjoyed a monopolistic position that even AT&T and Microsoft cannot touch.
However, this is rapidly changing. My family has bounced around the world a lot, living in quite a few different places. I know lots of people like that out there, one of my dad's friends moved to Canada because the smog in Shanghai is killing him.I also know Canadians who go abroad to work, since there are better opportunities out there.
Thus in this day and age, the 90% taxation is IMPOSSIBLE. Remember the surprise when one of the Facebook co-founders gave up on his American citizenship? he is willing to give it up, because in his opinion, the "services" the US government pays him is not worth the "price" (taxes).
If your country "charges too much" for the "services", you can leave.
There are millions of people who risk their life to enter the US illegally every year. They are voting with their legs, and wallets.
If you don't like a country, you can leave (although yes, it is still difficult, but it is a viable option now).
Raise the tax, and what is to stop people from leaving? Remember, America is competing with around 200 other countries out there.