Рет қаралды 94
Usually I hear conservatives pushing more for a simplification of the tax system, whereas liberals are more likely to support progressive taxation. I think the best results for income tax reform could be obtained by combining both of these proposals or approaches, radically simplifying the tax code while keeping it progressive or making it more so.
I explain how the complexity of the tax code is costly and wasteful, facilitates tax evasion, and favors the wealthy over the poor as wealthier people are able to pay more for accountants. A complex tax code is especially hard on people with multiple income sources, such as self-employed people, people with multiple part-time jobs, and people with investment income.
I also explain why I think progressive taxation is important: at low-income levels, especially when people are not earning enough to make ends meet, even a small amount of tax can impose significant hardship. At high income levels, even a much larger amount of tax might impose little hardship on people. I also think progressive tax addresses the question of concentration of power. If you see money as power, I think there is something undemocratic about making it easy for certain people to am
I also explain why I think progressive taxation is important: at low-income levels, especially when people are not earning enough to make ends meet, even a small amount of tax can impose significant hardship. At high income levels, even a much larger amount of tax might impose little hardship on people. I also think progressive tax addresses the question of concentration of power in the hands of a small number of people. If you see money as power, I think there is something undemocratic about making it easy for certain people to amass huge amounts of wealth grossly out of proportion to the wealth held by other people; progressive taxation is a system-level factor that reduces the largest wealth disparities.