If you were to somehow be able to change the tax system of a country on your own, what system would you want and why? I recently saw this question posed on Reddit (a social bookmarking site for those not familiar with it) and was wondering how everyone here would respond.
Well I wouldn't create a system where rich have to pay ridiculously high amounts.
I get so little every month and to have to pay taxes for that is stupid.
I also support carbon taxes over some of the more traditional methods.
If you were to somehow be able to change the tax system of a country on your own, what system would you want and why? I recently saw this question posed on Reddit (a social bookmarking site for those not familiar with it) and was wondering how everyone here would respond.
I prefer a flat rate. Everyone pays the same percentage of their income with no deductions, credits, box tops, coupons, or exceptions. That way there is no room for political favors or social engineering by the govt. It's a low cost, low paperwork, low hassle approach.
Why not? They're the ones that can afford it. Plus if you levy high tax-rates for the super-rich, at least, it would be a massive economic benefit and boost revenue, while making cuts for the poor possible.
Absolutely. I'm all for tax exemptions for the poor. That's not the sentiment you just expressed, though.
The environment should be one of the priorities, definitely, yeah.
Whether you think the "rich" can afford it is not your decision to make.
How did the rich get their wealth? For the vast majority, they earned it through hard work and sacrifice. Their wealth is their reward for the sacrifices they made earlier in life.
I'll use myself as an example. I am "rich", but to get to this position I risked everything I had to start a business and make it a success. For years, there was no eating at restaurants, no vacations, generic store brand food, used cars, and clipping coupons from the newspaper. I gave up my paycheck many times so I could pay employees. In the third year of business, my total income was less than $7,000, which was far below the poverty level for a family of 5. Every waking moment was spent working to make the company a success.
Now it is a success, which means I get to reap the rewards of my efforts and sacrifices. Its also a success for the community and the govt. I created jobs, pay unemployment and payroll taxes, and the employees pay income taxes. Its a "win" for everyone.
One of the reasons I went to the trouble was to reap the financial rewards. Thats the flaw of an extremely progressive tax system or a socialist or communist system - it takes the reward away. Take the financial reward away, and I would not have bothered starting a new company and creating those jobs.
And you overestimate the wealth in the "rich" classes. Look at the IRS tax data. If the govt took every penny of income from everyone whose total income exceeded $200,000, it would just balance last years federal budget.
And that's different from a socialist system how? In a socialist system, you could have still done all that. What you couldn't[/I ]do is rip off your employees, cut corners, scam others and otherwise milk society for all it's worth. Off topic but I just wanted to clear that up.
Dave already said how its different from a socialist system and it's extremely progressive tax system, which does remove the incentive to work. I know the US currently has a progressive system, but most socialists would go for making it even more extreme and the fact that it even exists in the US shows that we aren't as capitalist as some may think we are.
As for ripping off employees, scamming, etc.- that could happen in any system. I would rather have it happen in a system where the crooks can get prosecuted for doing it instead of having those who are doing the scamming also be the prosecutors![]()
As has mine. You can't say fraud is limited to capitalism though- it happens in any system.myp, do we really want to start this debate again? My position has been argued to death.
As has mine. You can't say fraud is limited to capitalism though- it happens in any system.
You said that in a socialist system and I quote:I've never made that claim. All I said was that his story, as a small business owner, could fit in a socialist economy. This despite his claim that socialism would have prevented his success.
You said that in a socialist system and I quote:
"What you couldn't[/I ]do is rip off your employees, cut corners, scam others and otherwise milk society for all it's worth. Off topic but I just wanted to clear that up."
As for having the same opportunity, with a higher progressive tax, that would not be the case. It doesn't matter what socialist theory says because in practice people are driven by incentives and if there is very little incentive to earn more, most people won't.
And that's different from a socialist system how? In a socialist system, you could have still done all that. What you couldn't[/I ]do is rip off your employees, cut corners, scam others and otherwise milk society for all it's worth. Off topic but I just wanted to clear that up.
I prefer a flat rate. Everyone pays the same percentage of their income with no deductions, credits, box tops, coupons, or exceptions. That way there is no room for political favors or social engineering by the govt. It's a low cost, low paperwork, low hassle approach.