Thread: What tax rate IS Fair? Is there REALLY a fair flat tax rate anymore?

This weekend there will be 7 billion people in the world. Global GDP distributed equally would leave all of us poor.

Its not a matter of simple division.

There are lots of ways to arrive at "fair". One principle I've always supported is taxing income earned from work at a lower rate than income received from investment, lottery winnings, or inheritance. The willingness of people to work for wages is the one indispensable ingredient for a strong modern economy and for increased wealth for everyone. Hard work is one of the things most people say they value. It should be rewarded by being taxed less than other forms of income.

Originally Posted by Disillusioned_1

Its not how hard someone works. Its the utility of money .... the more you have the easier it is to make more. The less you have, the harder it is to make more.

Thats a contradiction. You propose taxing based on how hard it is to earn money under the assumption that having more money makes it easier to earn more. Then say its not about how hard it is to earn money.

Originally Posted by jviehe

Thats a contradiction. You propose taxing based on how hard it is to earn money under the assumption that having more money makes it easier to earn more.

Except it actually does.

If having money makes it easier to earn money why do about a third of the top 1% fall out of the top 1% each year?

Originally Posted by Commodore

Its not a matter of simple division.

Oh I understand that, I don't suspect a lot of people do.

to continue with the thread topic Taxes shouldn't be keeping us in our place, they shouldn't' keep people from achieving and yet we have a tax and benefit structure where people are in effect punished by trying to pull themselves ahead.

Originally Posted by JDJarvis

If having money makes it easier to earn money why do about a third of the top 1% fall out of the top 1% each year?

Rich people are no smarter than the rest of the population. And they are no more acquisitive or greedy than those in the 2% -5% who are struggling to replace them. So of course there is some turnover. But it's not like those former 1%ers are living on welfare now.

Originally Posted by Disillusioned_1

Money should be taxed at a rate comparable to the ease of earning it.

Its easy for someone with $50 million in assets to earn $1 million more.

Its extremely hard for someone with $10 thousand in assets to earn 100,000 dollars.

So, if I sit on my butt and do nothing, then I benefit by not being taxed. It is not hard for someone with $10k in assets to earn $100K. Just be good at something. If you work hard and are good at any job, you'll make money. Most importantly you add value to an enterprise and you then get security.

Jobless and on unemployment? But the wife makes too much to allow your kids to qualify for financial aide? And you owe to much debt?

Seems you have lived beyond your means for some time, and now must suffer the consequences. And your children are going to suffer due to your poor decisions.

And why are you unemployed? Why didn't you keep your value in your last job? It is your responsibility to maintain that value you bring to an enterprize.

In 1905, the very best buggy whip maker in New York was John Clayton. In 1908, John was unemployed.

Fair is simple.

Fair is everyone pays the same rate. Everyone is equally responsible for their contribution to the country and to society.

Fair is not even remotely usable in describing the current tax code. Simple is not remotely usable in describing the current tax code.

As was said, there is power and money in complicated tax codes for those who write them, so expecting those who have been in office for any length to embrace removing the current garbage which constitutes the US Tax Code is unrealistic.

Originally Posted by 9aces

Fair is simple.

Fair is everyone pays the same rate. Everyone is equally responsible for their contribution to the country and to society.

Fair is not even remotely usable in describing the current tax code. Simple is not remotely usable in describing the current tax code.

As was said, there is power and money in complicated tax codes for those who write them, so expecting those who have been in office for any length to embrace removing the current garbage which constitutes the US Tax Code is unrealistic.

I dont agree paying the same rate is fair unless everyone agrees to it. I highly doubt people would voluntarily pay the same rate on 1 mil as 10,000 if given a choice. Fair is either consent or paying an equal amount. It would not be fair for a rich person to pay twice as much for a gallon of gas as a poor person, if the cost of gas was X% of the value of their car. The same goes for taxes. Why is it fair for Warenn Buffet to pay 100,000x the amount of tax as his secratary for the same (less actually) services, even if they were paying the same rate on income?

Originally Posted by jviehe

I dont agree paying the same rate is fair unless everyone agrees to it. I highly doubt people would voluntarily pay the same rate on 1 mil as 10,000 if given a choice. Fair is either consent or paying an equal amount. It would not be fair for a rich person to pay twice as much for a gallon of gas as a poor person, if the cost of gas was X% of the value of their car. The same goes for taxes. Why is it fair for Warenn Buffet to pay 100,000x the amount of tax as his secratary for the same (less actually) services, even if they were paying the same rate on income?

What you are saying is that people want to pay last than the guy who makes $1 more then they.

Buffets comments were misleading, deliberately. His "salary" from his firm is quite small. Most of his income would be from profits on the sale of BH stock, which is taxed at 15%. And I suspect that his admin is being well paid, so is paying 28%.

"Fair" is not a word that should be used in discussing government. Nothing is "fair".