TheRealMafoo on 22 July 2009
AN example of what I mean, is this.
Two examples.
Rich pay 50% tax.
Everyone else pays 30% tax.
GDP = 100.
Rich pay 40% tax.
Everyone else pays 30% tax.
GDP = 150.
If the rich pay 19.5% of GDP, the government makes more money in the second case, even though the non rich pay the same tax rate.
Why, if this is true (and it is by the way), would you ever want the first example?
