08-16-2004, 03:37 PM #1
Taxes and Redistribution of Funds
Can someone explain this to me, because i dont know if im getting the whole story and from what i am hearing it seems unfair. I have been told that the richest 2% of people in the country pay for 90% of the taxes. Also that the democratic party wants them to pay more. and for their money to go to people in the lower 10% of the country. Is any of this true i am not being sarcastic i honestly dont know if it is a rumor or not
08-16-2004, 09:51 PM #2
Well, you will hear different numbers in different jurisdictions, years, and fiscal years. Western nations all employ a progressive tax scheme (don't let the name progressive sway you to believe it's a good thing) which means as your income rises the rate you pay on marginal income rises as well. This is why you hear people say things like 'they gvt is not treating all dollars equally' which is true. An example might look like this:
Bracket 1: $0-$20,000 - 10% of income
Bracket 2: 20,001-$50,000 - 15% of income
Bracket 3: $50,001-$100,000 - 25% of income
Bracket 4: $100,001 and above - 30%
Person A: $35,000 income pays $2000 + $2250 from brackets 1 and 2 respectively for a total of $4250.
Person B: $135,000 income pays $2000 + $4500 + 12,500 + $10,500 from brackets 1, 2, 3, and 4 respectively for a total of $29,500.
The numbers are arbitrary but as you can see the burden is dramatically skewed and the share of total tax paid by higher income persons is disproportionate to the difference in benefits each taxpayer recieves.
Originally Posted by nickrizz
08-16-2004, 11:51 PM #3
Thats no different from punishing someone for being successful.
I would advocate a flat tax for all regardless of income...........
08-17-2004, 06:10 AM #4
Yea after reading that i believe in a flat tax also
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