Quote:
Originally Posted by dippin
Actually, the rich did better under Bush in in proportional terms as well. Median income remained virtually unchanged.
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Again, if you narrowly measure "better" there is no doubt you can be 100% correct. However, just to use an extreme example to illustrate a point (I understand the value of the example, so there is no need to comment on my intellect or lack of intellect), if Bill Gates' net worth of $58 billion doubles to $116 billion, he is doing "better", but I imagine after the first billion or two, the idea of "better" starts to have no meaning.
If a guy making $100,000 nearly doubles his income to $195,000, on an absolute basis and a proportional basis he did not do as well as Bill Gates but somehow I think the guy at $100,000 would actually "feel" the value in his increase in income, some on some subjective level I could argue that he did "better".
Our progressive income tax system actually hurts the guy at $100,000, but has no impact on a guy like Bill Gates. This concept forms the basis of my view on tax policy. Our tax policy does not affect people with great wealth, it impacts people trying to earn income, the income needed to get "rich". The difference is perhaps subtle, but there is a difference. Our income tax system also hurts the single mom getting the earned income tax credit as well, if she has the opportunity to earn a little more income she could face a large marginal tax increase - her biggest incentive is to stay poor, unless she pulls something off like winning the lottery.
---------- Post added at 10:11 PM ---------- Previous post was at 10:00 PM ----------
Quote:
Originally Posted by james t kirk
Everybody thinks that the gov't should come up with a system whereby THEY pay less taxes, but the other guy pays more (his fair share) in order to make up the gap.
Funny how that works.
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I would be happy with a flat tax or a consumption tax. Don't tax labor, savings, investment, tax consumption! Let people who live like millionaires pay taxes like it.
Bill Gates could zero out his "income" ( income as defined by the IRS, not capital gains - and actually Bill Gate could take loans on the value of his assets and never have to realize taxable capital gains) but still live like a billionaire for the rest of his life and the lives of all of his descendants based on our tax system.