
Originally Posted by
jfalco
All good points.
Where I stand is that distribution of wealth is so unfair that a tax system based solely on income is not fair.
The wealthy in a large part have built their wealth by exploitation of the poor. I don't really think your tax rate should be based on your total wealth, and I did not say that. What I was trying to say is that the common complaint of the wealthy that a graduated tax is unfair is BS.
Why? Does a wealthy person somehow use more of a Federally funded highway than a person of middle or lower income? Basing taxes on consumption would be 'fair', for instance excise taxes, which a person has the ability to opt out of. Dont like cigarettes, dont smoke. Gas too expensive, dont want to pollute the environment? Ride your bike. etc,etc.
Income referrs to profit&gains. When you work for them and perform a task, be it physicall or mentally intensive labor, you are performing an EXCHANGE. You give work, in exchange for payment. For the IRS, Federal government, or anyone else, to try and delineate which part of that EXCHANGE is profits&gains is absolutely insane. How do you decide which part of your hour was an exchange, and which part is profit? Its impossible to do and one reason that a tax on a persons income is completely illogical and illegitimate.
I think the top end of income should be taxed at a higher percentage that it currently is. Recently Warren Buffett pointed out that he pays about 16% of his income in taxes where as his secretary pays close to 30% of hers. Does that sound fair to you?
Warren Buffet has a pretty clear political axe to grind. Whether he wants to 'enter' politics or not is irrelevant, his statements make it quite clear that he has an ideology he wants to advance regarding the tax code.
I understand that social security is meant to be a savings account of sorts, but in reality it is a tax. If you are 30 or younger you are required to pay into social security, but it is beginning to seem like you will not get a dime back out.
At least we agree that social security doesn't work. I say let the wealthy who have built their wealth on the backs of the poor pay for the poor to retire. This seems fair to me.
Or the wealthy who have created jobs for millions of people? And the wealthy who have helped grow the GDP and thus the quality of life in this country for millions of people?The wealthy who have helped this country to have the largest middle class of any country in the world? They should be penalized for their success. What kind of message does that send to future hard workers and innovators? One message, that even after paying your taxes you will be taxed even more for the hard work and success you have achieved. Our current system of incentives, and the ability to earn as much as you want, and KEEP it, is what drives innovation, efficiency, and advancement. You want to throw an even bigger wrench into the principles of free market laissez-faire economics which WORKS!