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Gold Member

## Best basis for taxation

 Quote by rbj it's simply a fact of life that the rich pay more because they can and legislators have recognized that fact. sorry if you think it's immoral.
Legislators recognize that so they will get elected/re-elected, not necessarily because they believe it to be ethical or moral.

CS

 Recognitions: Gold Member Generally, in a tribal setting, those who are more able... give more... it isn't legislated away from them... they give more because their catch needs processing and they can't do the processing themselves so they give a percentage to the people helping to process the catch (buffalo, fish, money (whathaveyou). As I said, a monetary system costs millions if not billions to maintain.

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Homework Help
 Quote by stewartcs How does the airline industry not pass along cost again? Last time I flew I had to pay 15$to check my bag and$5 for a "snack and drink". I didn't have to pay for that in years past.
For some years after Sept. 11 the airlines were able to pass along almost none of the cost increases. At the moment they still haven't been able to pass much along. Essentially the only increases have been the surchanges you mention. And there was a good period where they couldn't even manage that.

There's no law stopping them from charging more for fares, they just haven't been able to sell enough tickets when they do. The surcharges allow for second-degree price discrimination which makes raising prices somewhat easier.

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 Quote by stewartcs To take the approach that those more able have more to lose simply because they own more "stuff" (property, cars, boats, whatever) if the government falls into anarchy is, in my opinion, misguided.
Why?

 Recognitions: Homework Help Science Advisor For an outside perspective: http://gregmankiw.blogspot.com/2008/...ax-policy.html 1. Efficiency: The tax system should distort incentives as little as possible (and, in the case of externalities and Pigovian taxes, correct incentives when necessary). 2. Intergenerational equity: The tax system should raise enough revenue so current generations do not unduly burden future generations. 3. Egalitarianism: The tax system should try to achieve a more equal distribution of after-tax incomes. 4. Stabilization: The tax system should help maintain the economy at full employment.