mozenrat wrote:bwenyenye wrote:Guys,
I have never understood the concept of 'equity' in taxation. Why should one pay more in tax simply because they earn more yet they utilise the exact same government services as the guy who makes less ? Normally the other guy uses more of government utlities e.g public hospitals and schools. Just a thought!
@bwenyenye.. I'm still looking for someone to explain this one to me.. Why? Why? Why?
I think its ok to have a threshold below which one doesn't pay income tax, simply to reflect the ideal minimum living standard (much in the same way as minimum wages are set) but why should one pay 50% while another pays 40% on their wages??
Obaks may have inspired many people to become conscientious tax payers (although he doesn't pay any himself) but really I think Republicans have it right, the Govt should have little or nothing to do with my life.
There are two reasons:
FIRST: People who earn higher are not greatly affected by deductions from their incomes. If you take 30% from a guy earning 1m, he is left with 700k... what you can do with 1m per month you can do with 700k in two months!
But if you take 30% from a guy who get 10k, he is left with 7k and after paying rent, the balance might not be enough to buy food for the remainder of the month.
Thus this school of thought says, why not tax high incomes at a higher rate than smaller ones to compensate the poor guys?
SECOND: This is tied to the first. It begins with appreciating that it is only fair not to tax lower incomes for same reason as above. But as soon as you say than people earning less than, say 10k shall not be taxed, the people just above the threshold will complain that they are being overtaxed. So you introduce them to taxation gradually, starting with 10%, the 15% and so on.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.