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Forums - General - Why we need a flat tax.

Squilliam said:

So who should pay more for the upkeep of the police force? Someone who has more to steal?

Let ask you this.

If I make $300,000 a year, and you take everything I own, am I better off or worse off then the guy who makes $20,000 a year losing everything he owns?

I would say making sure those who can't quickly replace the things they need is far more important then those who have the means to recover quickly.



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ManusJustus said:
TheRealMafoo said:
ManusJustus said:
TheRealMafoo said:
ManusJustus said:

I agree with many of your statements.  Which I shy I dont understand why you would want to put a flat tax on everyone.  Surely a poor person who spends most of his money on basic essentials shouldnt pay the same rate as a rich person who spends much of their money on frivolous items.

Why?

So should everything work this way? Should I show my W2 to Burger King, so they can adjust accordingly how much to charge me for food?

No, if you are having trouble paying for food you should stick to Burger King and not visit high-end french restaurant.

I can eat for a week on what Burger King cost, so based on basic needs, it's like a high-end french restaurant.

It would be interesting to see what it cost to live a minimum life, without being a burden on anyone. I bet it's very little.

I would consider Burger King a luxury as well. 

If you wanted to find out how little someone could eat on, you should include things that constitue a healthy diet in your equation.  I could only eat 25 cent Ramen which would add up to $5 a week (not factoring water, electricity, etc.), but I would be horribly malnurished.

A large portion of the healthiest foods are very inexpensive, lentils and beans are amazingly inexpensive and are very healthy (by most measures).

One of the most important skills a person can learn in their life is how to cook because on a very small budget ($10 for a family of 4 for dinner) a person can deliver a very healthy meal that is very tasty if they know what they're doing. Far too many people are unwilling to budge and demand inexpensive foods that are tasty and are easy to make; and this is why people have problems making healthy food on a budget.



RealMafoo, Kasz, and HappySquirrel,

Ramen noodles arent that much, and one meal a day is way short of a 2,000 calorie diet and nutrional intake one needs.  Living in America, I dont want to base the extent of 'basic needs' of what impoverished people in Nigeria try to get buy on.

I didnt know Milk and potatoes were so good for you, even so I wonder if a cheaper combination coupled with vitamins would be even cheaper.

I agree.  I think if people understood how much money they could save by cooking instead of picking up McDonalds or KFC, a lot of people would have more money and more healthy in the process.



ManusJustus said:

Kasz and RealMafoo,

Ramen noodles arent that much, and one meal a day is way short of a 2,000 calorie diet and nutrional intake one needs.  Living in America, I dont want to base the extent of 'basic needs' of what impoverished people in Nigeria try to get buy on.

I didnt know Milk and potatoes were so good for you, even so I wonder if a cheaper combination coupled with vitamins would be even cheaper.

This is the point I was making. There is an intrinsic value all Americans receive, and all americans need to work to keep it. Not just some. This is why I am for a flat tax.

This is an amazing place to live, and if everyone took ownership in it (meaning provided for it's management), far more people would take interest in how there efforts were spent, and this country would be that much better.

Right now, if a law maker passes a law, he has to think "ok, who is this going to piss off because they have to pay for it?" Wouldn't it be great, if the answer was "everyone".



TheRealMafoo said:
Squilliam said:

So who should pay more for the upkeep of the police force? Someone who has more to steal?

Let ask you this.

If I make $300,000 a year, and you take everything I own, am I better off or worse off then the guy who makes $20,000 a year losing everything he owns?

I would say making sure those who can't quickly replace the things they need is far more important then those who have the means to recover quickly.

Well you would value your safety more highly than someone who earns 20k thats for sure. A police force is more valuable to someone whos moved well beyond the basic food, warmth, shelter needs and therefore shouldn't people pay by how much they value something? Even though a police force is a public good and the marginal cost to protect one extra household is minimal, a wealthier household is more likely to want additional protection so why shouldn't they pay extra for the level of protection they desire?

A poorer household has neither the ability or willingness to pay for the same level of protection that a wealthy household does.

Not only that, but the only reason why that wealthy household exists is because they benefit disproportionately from government services. Without basic government services its very unlikely that society would have progressed as far as it has today because the individual acting towards his own best interests does not act towards societies best interests all the time. Would the human, capital and energy concentration of a city like New York exist without 'a' government?

 

 

 



Tease.

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ManusJustus said:
HappySqurriel said:
ManusJustus said:
HappySqurriel said:

Do you have problems with understanding someones argument and responding to it appropriately? What is so hard to understand about this:

"when taxes are low enough that companies thrive and unemployment is low the low wage earners have far more power to demand more equatible incomes because the companies cannot operate without their work."

If you insist on always increasing taxes on the top 5% of income earners to what extent do 95% of people have on keeping control on government spending?

the economy is better when the tax burden of everyone is minimalized to only cover the services that the government can provide more efficiently than the private sector.

Why can't people look at Seattle'slight rail transit system...

Wage earners dont demand more income, their income is decided by the free market.  It doesnt matter if you tax a company $100,000 or $1, if the free market values a software engineer at $60,000 a year that is how much he is going to make.

The government has to provide Seattle's light rail system because it the free market would never provide such a service.  There are public goods and private goods, and it so happens that the government is more efficient at providing public goods and the market is more efficient at providing private goods.  This is a simple economic fact, and if you think otherwise I ask you how efficient do you think the army would be if they depended on the free market to provide them with finances, or if you'd like paying a toll booth at every street corner?

Your idea that making people pay more or less taxes will change how they view government spending is a huge and incorrect assumption.  If someone pays $4,000 in taxes and you increase that to $5,000, a light bulb isnt going to flash in their head and change their view on government spending.

I think you have a massive lack of understanding how the free market works ...

If you have a certain number of companies, who each require a certain number of employees who have a certain skill set, then depending on the quantity of people with that skillset relative to the number demanded determines a person's wage...

If companies have more money on hand they tend to use this money to grow their business, which means they need more employees with a variety of skills to perform the research and development, production, distribution and marketing of their good; as well as a larger number of supporting staff to look after the running of their business. As the economy becomes better and better the number of jobs available becomes greater than the available workforce and companies are required to pay higher wages for the same job to attract potential employees.

Locally, I have seen this happen when companies had to put up (large) signs on the side of the road to inform people that they could earn $22 per hour to stock shelves after hours at stores. I have seen companies agressively promote low level employees from "The Mail Room" or "The Loading Docs" to take on higher paying office jobs without any (appropriate) experience because they needed someone to fill that position.

 

No private industry would build Seattle's light rail transit system because the ridership is awful because it is designed to fill a need that no-one has. Now, when you spend (at least) 10 times what a private company could produce something, and there is no interest in it because it offers such little value, why would you assume that it was delivered efficiently?


Thats exactly what I said by "the free market decides wages by labor supply and demand" without going into detail.

Companies grow based on how profitable it is to grow.  If a rich businessman's company has maximized profits, giving him a tax break will not give him an incentive to hire more employees.

There is a demand for mass transit.  Unfortunately for America, the free market (automobile industry) destroyed America's light rail system to make cars more profitable.  Ford actually set up a puppet company to buy light rail companies and replace them with inefficient bus systems, pusing people to choose cars as their means of transport, and the head of America's Transportation Cabinet was a former Ford CEO so he had no problem with this.  The problem is that with high gasoline prices and congested roadways, there is an increasing demand for light rail and the cost of rebuilding light rail after it is already gone is huge.

Light rail may sound costly now, but its worth the price when you consider increasing energy costs and road congestion that will greatly increase demand for light rail in the future.  Its kind of like the story of Noah's Ark, everybody thought it was silly until it started raining.

If a company reinvests their money into growing their business to make more money, how would having more money directly or indirectly from lower tax rates not translate into a larger investment into growing their business? Even if the rich business man is greedy and "keeps" the money to himself, when he buys goods, services or investments his money switches hands and will represent increased income to a different company who would use that income to increase the size of their business.

 

I don't think you understand what I am talking about in regards to seattle's mass transit system ... it is a very short train line with no parking that only takes passengers between downtown and the airport. The only people who would be interested in a service like this are business travelers who would favour a cab or rental car because it is far easier for them. Beyond that at $16 Million per mile you're dealing with an expensive transit system that may eventually pay for itself, at $160+ Million per mile you're dealing with waste on a level that only governments achieve.

 



Squilliam said:

A poorer household has neither the ability or willingness to pay for the same level of protection that a wealthy household does.

Here is the US, they get the same safety. I live in a town of about 10,000. We have poor, middle class, and rich. We have one police force that protects everyone the same.

We have almost zero crime. A woman walking through the worst part of this little town, is as safe as a woman walking anywhere.

And besides, the police force is a state thing. Federal dollars pay for the military, and we all get the same safety from other countries equally.

As for the parts of your post I deleted... Some of that was out there, and if you want to talk about it, make a new post and we can talk about it. I don't want to change topics in this thread, so many pages into it.



HappySqurriel said:

I don't think you understand what I am talking about in regards to seattle's mass transit system ... it is a very short train line with no parking that only takes passengers between downtown and the airport. The only people who would be interested in a service like this are business travelers who would favour a cab or rental car because it is far easier for them. Beyond that at $16 Million per mile you're dealing with an expensive transit system that may eventually pay for itself, at $160+ Million per mile you're dealing with waste on a level that only governments achieve.

 

Yea, and if they would just stop with all the road construction on the 405, it would not be that big of a deal to get out the airport. if your going downtown, the 5 will take you there in no time.

Not sure why they think they need a rail system.



ManusJustus said:

RealMafoo, Kasz, and HappySquirrel,

Ramen noodles arent that much, and one meal a day is way short of a 2,000 calorie diet and nutrional intake one needs.  Living in America, I dont want to base the extent of 'basic needs' of what impoverished people in Nigeria try to get buy on.

I didnt know Milk and potatoes were so good for you, even so I wonder if a cheaper combination coupled with vitamins would be even cheaper.

I agree.  I think if people understood how much money they could save by cooking instead of picking up McDonalds or KFC, a lot of people would have more money and more healthy in the process.

You'd be surprised.  It's how the Irish "defeated" the british after they lost their war for independence.

It lacks only like one or two nessisary vitamins which are found in other cheap foods such as lentils.

It's also helpful that they're delicious and you can do tons of different things with them to make them different.

Interestingly too... if you cook potatoes and then let them cool they are healthier for you if your trying to lose weight.  Not sure how that effects things nutrition wise though.



Do you mean better cooked, or better cooled off? The latter would be really strange...



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