We should not discourage work or labor through a graduated income tax…we should tax people based on the luxuries that money provides.
It is simply unjust tax labor more than other forms of income. It picks favorites among revenue sources.
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You’re right, we should not discourage work and labor. The problem is that those with the highest incomes rarely work or labor. Most of their income is passive/investment income.
IMHO, we need to discourage gambling and encourage work. That’s why I would lower the rate on **earned** income, and tax investment income at a much higher rate, with steeply progressive rates.
I would not support a consumption tax, because it’s too regressive. Most poor people spend almost all of their income on basic necessities, while the rich can invest theirs. It would be totally immoral and unethical to tax gamblers at 0-15%, while taxing poor people at the maximum rate (if consumption tax is the highest tax).
