| Kasz216 said: 8) Don't you think a progressive tax gives the government a big incentive to make the rich richer and the middle class poorer since the more rich the rich are the more taxes the government gets? Instead of a 20% all around... the government gets 23% if the rich get richer, and 17% if the middle class is buffed up?
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Not the way progressive taxes usually work in Europe (at least in Scandinavia which is where I've been working at).
The high-income tax only applies to the portion of income above the high-income threshold. The tax percentages actually get lower and lower as you go up in the brackets (in Sweden the high-income tax is just 5% applied on income above this threshold).
If my thinking is correct, this implies the exact opposite of what you said. Making the rich richer by X only makes the state richer by 0.05*X, a small amount compared to an increase in middle-income salaries (0.3*X or something like that).
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