from my income tax textbook:
"First, even when the market is functioning perfectly, returns to both capital and labor inputs depend upon the demand for the product or service being produced. People who supply capital or labor to endeavors where demand proves strong will do very well; people who work or risk their capital in endeavors where demand proves weak will do badly. These rewards depend on factors outside an individual's control. For example, the enormous demand for Britney Spears to sing has made her a very wealthy woman. If public tastes were to improve and demand for her services were to decrease, her income would decline dramatically without regard to any change in her ability or effort."
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4 comments:
"Britney Spears" really does say all one needs to about why progressive tax rates "aren't necessarily unjust."
The question, for me anyway, is whether we really would find a flat tax more just if only we could let go our vindictiveness.
I of course don't espouse the idea that progressive tax rates are unjust. I think a lot do, though, because they believe people are in some way entitled to all the money they earn/receive.
And as for vindictiveness, one might argue that vindictiveness is itself a cause of a progressive tax--that people resent others who make more than they do. I don't think vindictiveness can fully explain the position that a flat tax is more just.
In other news, I like it that one has to "Choose an identity" to leave a comment here. Who shall I be today?
. . .
No, I meant Britney Spears.
Though if you like that sort of thing, the Economist (magazine) has put forward some pretty interesting ideas for a just flat tax, while also pointing out how many billions of dollars we would save by not having the massive IRS as an institution.
Me, I'm for getting to infinite energy, unfathomable machine sentiences, and the goodness of a post-scarcity society as soon as is stably possible.
Aliens, if you are out there reading our blog comments, help out where appropriate!
Now, this is funny, because you are the THIRD PERSON in that class who has shared that passage with me (well, with assembled company including me).
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