--- In [email protected], Bhairitu <[EMAIL PROTECTED]> wrote:
That's why a progressive income tax is a good thing. It is an
disincentive to accumulating excessive wealth. It is better to have
more
millionaires than any billionaires. You would allow people to
accumulate
an estate worth up to $12 million and then the progressive tax kicks
in.
It's not there to make money for the government. Anyone who thinks they
need more than $12 million has to be sick.
(Just watch the resident righties -- rich wannabes but never-gonna-bees
-- whine at this).
Well I am not a resident rightie, but your conception of a progressive
income tax is fine, but has nothing to do with the progressive income
tax thats in place. Or the much more progressive one of the pre-80's.
A problem with high marginal rates -- near 70% in pre-80's, is people
spend an inordinate amount of time trying to shelter it or make it tax
deductable via "clever" means -- elaborate business trips and meals,
etc. Very unproductive energy for them and society. But understandable
when sheltering $1000 saves you $700. And such systems lead to hugely
complex tax codes, and an army of tax accountants -- all unproductive
overhead on society. And such complex tax codes increases corruption
in government where special interests are willing to pay a lot to get
special tax breaks. And lots of research does indicate the strong
correlation of low(er) marginal tax rates with economic growth.
A flat tax (some say 17% would do it) with no or few deductions,
starting at incomes over $30-50,000, (even a negative income taxfor
incomes below say $15,000) would eliminate all the inefficiencies,
overheads and drags on society from excessive tax accountants,
searching for tax shelters and deductions, poor economic choices for
tax reasons, etc. And would trigger greater economic growth -- which
is the engine for productivity increases, and that being the driver
for wage rate increases at all levels.
Unless you are mistakenly saying "income" when you mean estate tax --
and want to tax estates above 12 million. A fair proposal in my view
-- particularly if there are 3-5 kids, 20 grand kids etc.
But then again, few with estates above 12 million pay much estate tax
-- its all in sheletered trusts.
I suggest a flat tax per above, with an estate tax kicking in at
$10-20 million.
Just watch the resident ultra-leftists -- poor wannabes but
never-gonna-bees, whine at this :)
