Quote:
Originally Posted by Taurus
Won't work, there is no incentive to be successful. Why should 1% of the population pay 28% of the country's tax burden, just because they can afford it? Doesn't seem fair to me.
|
In the places were flat taxes were introduced, like Russia, The tax revenue went up simply because it was cheaper to pay the tax than try to avoid it.
At the same time the lower class people now had to pay and their demand for social services went down because they knew that using them would cost them money.
And yes there is an incentive to be successful. You now have the same tax rate no matter what you earn. Hitting that Bubble in graduated tax rates where your income is rising but your tax rate are growing faster yet your deduction are not growing causes many to lose incentive AND capital to invest.
And there is no FAIR. Only what works. given todays tax rates the top 1% pay 36.7% and the top 10% pay over 70%. the Bottom 50% pay les than 3%.
That just unsustainable.