How about this: Everyone gets their taxes cut in half, and then double that 
half is collected in addition but only by those whose total incomes 
increased and to the proportion that they increased from the previous year. 
Seems fair to me.

On Monday, December 17, 2012 4:41:32 PM UTC-5, rclough wrote:
>
>  To try to clear up my mistaken interpretation of the gini coefficient,
> namely that USA inequality is not decreasing, it is actually increasing,
> I  find that the per capita wealth is also increasing, so
> let's see what effect that will have.
>  
> Although the fairness index (gini coefficient) has
> grown linearly with time in the USA,
> :
>   
>  
> The real per capital wealth has also increased, but exponentially:
> (Real means inflation-adjusted)
> :
>   
> By eyeball, it looks as though the real per person income GDP increased 
> over the range 
> of the time duration of the gini coefficient growth by about 5/1.5 ~ 3.3 
> .. The gini 
> coefficient only increased from  .4 to .47 or is about  1.17 times 
> larger, or is essentially 
> constant in comparison with the growth in real GDP by a factor of 3.3. So 
> I would say that 
> everybody- the poor as well as the wealthy--  is getting appreciably 
> richer, even 
> though there has been a minimal increase in wealth inequality. 
>  
> The growth rate is not within our control. The questiion then is whether or
> not the gini coefficient is in control of the growth rate. If not, then
> the debate on taxation ends there. 
>  
> But if the gini coefficient can actually change the growth rate, 
> artificially lowering 
> the gini coefficient by increased taxation of the rich (redistributing the 
> income) 
> hurts the growth rate, so we all get poorer.  Actually, a lot poorer.
> The data above shows that decreasing the gini coefficient a small
> amount will produce a much larger decrease in the per capita GDP, 
> because the latter decreases exponentially with a linear decrease in 
> the gini coefficient.
>  
> So, in either case, taxing the wealthy can do no good.
>  
>  
>  
>  
>  
>   
>  
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>

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