kain_kusanagi said:
binary solo said: I think anyone earning over $1 million Euros per year can afford to pay 75% tax ON EARNINGS OVER $1 million Euros without it affecting their lifestyle in any real way. However, I do believe that no matter how many dollars you earn a majority of every earned dollar should go into your pocket. i.e. I think governments should discipline themselves such that their budget can be met with a top income tax rate substantially below 50%. If you have to tax anyone above 50% then you're doing something wrong. |
What?
You think it's ok to take 75% of someone's earnings? You then go on to say 50% is still reasonable. I suppose you think the state knows how to spend people's money better then they do?
At 75% 1,000,000 would become 250,000
That's a big difference.
If you earned that money I think you would want to spend it on what you want instead of losing 75% of it to taxes. Even 50% is far too much.
I mean, wouldn't a tax system and spending system that requires 10% of everyone with no loopholes be fair and work a lot better? It's just as unfair to make the rich pay more as it is to give the lazy free money.
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Are you being deliberately dense or do you really not know how a progressive taxation system works?
When you hit 1 million euros in France your income doesn't suddently drop to 250K. Only those Euros earned above 1 million are taxed at 75%.
If you have a 4 tier taxation system say 10% (up to 20K), 20% (20,001K to 70K), 40% (70,001K to 999,999K) and 75% (1 million+) then the first 999,999K you earn is taxed at 40% and below. If you earn 1.1 million then only 100K of what you've earned is taxed at 75%.
You will also note I said the top tax rate should be substantially below 50%. So perhaps you should read things a bit more closely, unles you were deliberately misinterpretting what I wrote there as well.
No, I don't think a flat tax is fairer. Not least because a flatter income tax inevitably leads to a higher consumption tax as a source of govt revenue. And consumption taxes are very regressive. Though if capital gains taxes are set at the same rate as consumption taxes then that makes the over all tax system less regressive.
I happen to be earning well into the top income tax bracket, and while I don't feel rich by any stretch of the imagination I'm happy to pay my taxes because I know what my taxes are paying for. Is the govt inefficient in many of the things it does? yes. Do we have too many politicians and are they paid too much? probably. But these things are only a relatively small proportion of overall govt spending and the overwhelming majority of what the govt spends money on is highly beneficial to the country: roads, hospitals, schools, law enforcement, crime prevention, courts, defence, national security, research and development grants, preserving and protecting the environment, border control, emergency services, libraries, various social services, embassies and foreign relations, trade agreements, economic development.
I don't like the implications of your "give the lazy free money" comment, but I'll give you the benefit of the doubt that you don't believe all people in need of govt financial assistance are lazy freeloaders. Indeed I will do you the charity of crediting you with enough intelligence to know that the vast majority of people who need govt financial assistance are NOT lazy free loaders. I hope my charity is not misplaced.