[quote=no_such_reality][quote=CA renter]So…you’d finally agree with me that the fairest sort of tax system would tax ALL income at the same progressive rates?[/quote]
No the fairest tax system would tax all income like dividends. A flat rate.
Make $10,000, pay 15%, or $1500.
Make $100,000 pay 15%, or $15000.
Make $1,000,000 pay 15% or $150,000.
Then just provide a back credit to poverty level.[/quote]
Depends on what one would call “fair.” A flat tax is patently regressive.
Assuming everyone needs $100,000 in order to live at a particular level (just picking a number, not saying it’s true), then the person making close to that number will not be able to amass wealth in the same way that a person with $2MM in disposable wealth can, yet they will be taxed at the same rate.
Unless you exclude the first, say, $100K or $150K of income, a flat tax will be unnecessarily regressive and damaging to those who work for a living since those who “earn” more than a certain level make most of their money from investments.
So…the fairest tax is one that taxes ALL people’s income at the SAME, progressive rates. That way, everybody is taxed the same.
