Originally Posted by
bryris
There is never going to be a perfectly fair way to tax. Someone will always complain. Hell, a seniority list cannot even be merged without a similar response.
However, taxing someone more heavily as they succeed serves to dampen the motivation to succeed in the first place. As the progressive scale gets bigger, these same folks are able to maneuver within the system to end up with a lesser effective percentage, effectively flattening out the progressive nature of the tables.
The system you advocate is one in which the higher earners pay the heaviest taxes and those who are the "backbone" (as if the large businesses aren't part of that) as you say shouldn't have to pay as much. Honestly, that is about the way it is in reality - nearly 50% of lower ended wage earners pay nothing in federal taxes.
Your viewpoint is akin to communism which holds dear the mantra of "from each according to his ability and to each according to his need". So far, communism is batting zero.
It might sound great if you are the little guy, but merely serves to stifle will to succeed on the macro scale.
I am not going to swing back on your having lived in other countries. So be it. However, you obviously have some major misunderstandings about how businesses work (in this country anyways), what motivates people to succeed, and the inherent balance in the current system. The system is a tool that can be played in many ways. Some choose not to play and will merely complain about it and others will see huge opportunities and go out and create the next Google, Apple, or Microsoft. The lowest common denominator could be construed to be the degree of motivation one has to use the system to succeed. This is what the whole idea of "The American Dream" is all about. Its not "The American Guarantee". Some paths don't lead to victory - so choose wisely in a flawed system that is still the best one on the face of the planet today.
You are entitled to your viewpoint, though. We all are.
Once again you are regurgitating information that you gathered from your textbooks....
I am not advocating communism here, last time I checked Sweden was not a Communist State. I was born and raised in a communist country and believe me it was not a place I would want go back to.
You mention that "taxing someone more heavily as they succeed serves to dampen the motivation to succeed in the first place" I have to disagree with that and here is a couple reasons why:
1. Countries like Japan and most of Europe tax their wealthiest at rate of 90% and yet somehow they manage to produce companies that compete and in many instances thrive with the rest of the world. Last time I checked Toyota was producing cars that were just as good as GM.
2. Until the the 80's USA was taxing Corporations in 70% range and somehow the country did not spiral into severe recession like it has today
(during the lowest tax rates in history)
3. Money is not the main motivator for success or fulfillment in life. After all, even you decided to work one of the lowest paid regional in the country because you loved flying more than a paycheck...
I like money as much the next guy and I am not suggesting 90% tax rates. I am however, saying than an extra 5% would not hurt someone that already has billions in their bank account. I think you are missing the point I am trying to make. I believe in free enterprise but it should not be an anarchy for majority of popultaion and socialism for the wealthiest. Corporations and business keeps the ball rolling but it does not mean that they can't contribute a little more to the people that help create that wealth because otherwise we will see the 1920's all over again.