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I only know of two arguments against raising taxes on the wealty. The first is that higher taxes will reduce growth and investment. To that I say that not all taxes are the same. Credits and deductions providing incentives for investment do not exclude taxation on wealth that goes to lifestyle. And the rich can certainly spare a few bucks.
But the argument I want to address here is the issue of fairness. Many people claim it is unfair that almost half of Americans pay no taxes!
Of course that is incorrect. What is correct is that they paid no Federal income tax.
To that I respond with this:
The real question is, what pecentage of a person's income goes to all taxes paid, directly or indirectly? And this isn't just a number's game. In the case of the lower end of the income spectrum, the taxes paid may constitute a significant percentage of the minimum cost of survival, less living on the streets. When people are just barely getting by, those taxes are significant percentage of the cost of life [food, water, rent, power], not lifestyle.
We have to balance the budget. On that I think we all agree. The notion that this cost should all be carried by the poor and middle class is, in my view, morally and logically unacceptable, and unjustifiable.
But the argument I want to address here is the issue of fairness. Many people claim it is unfair that almost half of Americans pay no taxes!
Of course that is incorrect. What is correct is that they paid no Federal income tax.
http://www.msnbc.msn.com/id/3622644...finance/t/half-us-pays-no-federal-income-tax/About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That's according to projections by the Tax Policy Center, a Washington research organization...
To that I respond with this:
http://reason.com/archives/1975/07/01/inside-ronald-reagan/4If people need any more concrete explanation of this, start with the staff of life, a loaf of bread. The simplest thing; the poorest man must have it. Well, there are 151 taxes now in the price of a loaf of bread–it accounts for more than half the cost of a loaf of bread. It begins with the first tax, on the farmer that raised the wheat. Any simpleton can understand that if that farmer cannot get enough money for his wheat, to pay the property tax on his farm, he can’t be a farmer. He loses his farm. And so it is with the fellow who pays a driver’s license and a gasoline tax to drive the truckload of wheat to the mill, the miller who has to pay everything from social security tax, business license, everything else. He has to make his living over and above those costs. So they all wind up in that loaf of bread. Now an egg isn’t far behind and nobody had to make that. There’s a hundred taxes in an egg by the time it gets to market and you know the chicken didn’t put them there!
The real question is, what pecentage of a person's income goes to all taxes paid, directly or indirectly? And this isn't just a number's game. In the case of the lower end of the income spectrum, the taxes paid may constitute a significant percentage of the minimum cost of survival, less living on the streets. When people are just barely getting by, those taxes are significant percentage of the cost of life [food, water, rent, power], not lifestyle.
We have to balance the budget. On that I think we all agree. The notion that this cost should all be carried by the poor and middle class is, in my view, morally and logically unacceptable, and unjustifiable.
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