DIYbanter - View Single Post - OT Taxes My Proposed Taxes Fairness Bill of 2012

HeyBub[_3_]

wrote:
On Apr 17, 9:30 pm, "HeyBub" wrote:
wrote:

For one thing it would ensure that everyone paid their "fair
share." Everyone would pay the same rate, but the rich spend more
money so they would end up paying more taxes.

The problem is that the rich would pay a lot less than
they do under the current system or with a flat income tax.
The rich do spend more, but I think very few are
spending enough to come anywhere close to making
up the income tax that would be lost.

Why is that a "problem?"

The rich use fewer government services than the poor. The rich don't
send their kids to government schools, use the county hospital,
collect rent suppliments or food stamps. Oh, the rich should pay
SOMETHING. After all, they are driven on public roads and use
federal airspace. But the poor use far more tax-supported services,
both absolutely and per capita, so fairness dictates they pay more.

It's a problem because it shifts more of the tax burden on
those with little or modest incomes. The poor and middle
class would get socked. I have no problem with
a tax system that is graduated to some degree, nor do I
think most people do. Also, those rich people benefitted
from the infrastructure. Shouldn't the rich pay a lot more for
the military to in part, protect their wealth, than the guy
making $10,000?

I agree, as I stated above, the rich should pay SOMETHING.

The consequence of low or no tax on those of modest means allows them to buy
stuff they want but don't really need, which, in turn, profits those who own
the companies that make Twinkies, iPhones, 52" TV sets, and other stuff.
These increased sales drive up the profit of the manufacturers (or
importers) and they get taxed on their stock dividends.

The modest-income people have to pay more for the product or service to
accommodate the tax their betters pay, so I guess it averages out.

Still, it is disturbing, at some level, that 50% of Americans pay no income
taxes at all.