4-of-a-Kind
Join Date: Jan 2007
Location: Old School
Posts: 2,535
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Quote:
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Originally Posted by Monty3038
Hmm... I didn't have a chance to watch the video you referenced (at work) but as towards taxes that are progressive, I am just not convinced. If I work and earn a certain amount of money, no matter what that amount of money is, I get the same services from the government. Why should a larger percentage of my income go to the government when I am receiving the same services as someone else? In actuality, as I earn more money I use less services from the government, so let me rephrase that... If I work hard and earn more money, using progressively less government services, why should I pay more for them as my income increases?
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Monty,
Say you earn $100. If the government taxes you 10% on that, you take home only $90. You cannot buy a lot of things with $100, let alone $90.
Now say you earn $100,000. The government taxes you 45%. You still have $55,000, and with that amount of money you can still pay for all sorts of nice things.
Obviously, a person who earns very little will miss a small percentage of that already puny salary much more than someone who earns a heck of a lot. I don't know the terms, but financial capacity is close to what I'm trying to point out. The low earner has inherently low financial capacity, while the big earner has high financial capacity. Also obviously, you will have a lot more people with lower financial capacity than higher.
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