The Self-Destruction of the 1 Percent

mookiemookie · 10-16-12, 06:52 AM

Flat taxes seem like a fair idea on the surface. What could be more fair than everyone paying the same percentage? But it presents problems when you dig deeper into it.

1. One of the biggest knocks on capitalism is that it takes money to make money. You could make the best coffee in the world, but you're never going to cut into Starbucks' market share. Too often the person with the better idea or product can't compete with the person with money - the one with money can essentially write the rules and regulations to favor themselves and present barriers to entry to any upstart, no matter how superior the upstart's product or service may be. A progressive taxation system addresses this inequality.

2. You don't need a flat tax to simplify the tax code. Too often these two ideas are conflated. Eliminating deductions and loopholes can be done while keeping a progressive taxation system in place.

3. Sometimes the old arguments are best - a rich person receives less marginal utility for each additional dollar earned than a poor person does....you may take away the rich person's ability to buy a 4th house by taxing them at that rate, but you may be taking away the poor person's ability to stay in their only house by taxing them at the same rate.

4. Our laws, infrstructure and financial system benefit those with money more than those without. If you've got $1 million in the bank, you need the government to protect that $1 million through law and military force a lot more than the guy with $100 in the bank. Why shouldn't the person with more to lose pay more?

10-16-12, 06:52 AM	#20
mookiemookie Navy Seal Join Date: Nov 2005 Location: Houston, TX Posts: 9,404 Downloads: 105 Uploads: 1	Flat taxes seem like a fair idea on the surface. What could be more fair than everyone paying the same percentage? But it presents problems when you dig deeper into it. 1. One of the biggest knocks on capitalism is that it takes money to make money. You could make the best coffee in the world, but you're never going to cut into Starbucks' market share. Too often the person with the better idea or product can't compete with the person with money - the one with money can essentially write the rules and regulations to favor themselves and present barriers to entry to any upstart, no matter how superior the upstart's product or service may be. A progressive taxation system addresses this inequality. 2. You don't need a flat tax to simplify the tax code. Too often these two ideas are conflated. Eliminating deductions and loopholes can be done while keeping a progressive taxation system in place. 3. Sometimes the old arguments are best - a rich person receives less marginal utility for each additional dollar earned than a poor person does....you may take away the rich person's ability to buy a 4th house by taxing them at that rate, but you may be taking away the poor person's ability to stay in their only house by taxing them at the same rate. 4. Our laws, infrstructure and financial system benefit those with money more than those without. If you've got $1 million in the bank, you need the government to protect that $1 million through law and military force a lot more than the guy with $100 in the bank. Why shouldn't the person with more to lose pay more? __________________ They don’t think it be like it is, but it do. Want more U-boat Kaleun portraits for your SH3 Commander Profiles? Download the SH3 Commander Portrait Pack here.