9 ms·

My take away is that the tax system needs to be radically simplified. Eliminate Capital Gains tax, all income is taxed as income. All tax rates are lowered th

by wuwuno 6y ago

My take away is that the tax system needs to be radically simplified. Eliminate Capital Gains tax, all income is taxed as income. All tax rates are lowered the effective tax paid for each tax bracket. All deductions are eliminated except for primary residence. Two new brackets are created: >2M 54% tax rate >10M 70% tax rate.

kaczordon 6y ago
One word: flat tax rate
- m463 6y ago
  that is a regressive tax.
  - alexmingoia 6y ago
    A regressive tax is one which everyone pays the same regardless of income. Sales tax is a regressive tax. Property tax is a regressive tax. A flat percentage income tax is progressive. The more one earns, the more they pay. If the flat tax is 15%, someone who earns a million pays $150,000, and someone who earns $30,000 pays $4,500. The richer someone is, the more they would pay. A flat percentage income tax on all income from all sources is progressive, fair, and simple.
    - copperx 6y ago
      Your logic is faulty. Using your reasoning, sales and property taxes are also progressive, because wealthy people purchase significantly more goods and properties, which are frequently more expensive than a middle class person would buy. Thus, the rich end up paying more taxes.
      - alexmingoia 6y ago
        Using my logic, tax assessments that don’t change based on income are regressive, and tax assessments that do are progressive. It’s not complicated, and it’s a widely used definition. https://en.m.wikipedia.org/wiki/Progressive_tax https://en.m.wikipedia.org/wiki/Progressive_tax You may think a flat income tax rate isn’t progressive enough, but it’s not a regressive tax.
    - Zanni 6y ago
      It's still regressive because the utility of money isn't constant. A dollar is worth more to someone with less money.
      - alexmingoia 6y ago
        The utility of money cannot be made constant with a tax, so I’m not sure what you consider the distinction between a regressive and progressive tax?

by wuwuno 6y ago

kaczordon 6y ago

One word: flat tax rate

m463 6y ago
that is a regressive tax.
- alexmingoia 6y ago
  A regressive tax is one which everyone pays the same regardless of income. Sales tax is a regressive tax. Property tax is a regressive tax. A flat percentage income tax is progressive. The more one earns, the more they pay. If the flat tax is 15%, someone who earns a million pays $150,000, and someone who earns $30,000 pays $4,500. The richer someone is, the more they would pay. A flat percentage income tax on all income from all sources is progressive, fair, and simple.
  - copperx 6y ago
    Your logic is faulty. Using your reasoning, sales and property taxes are also progressive, because wealthy people purchase significantly more goods and properties, which are frequently more expensive than a middle class person would buy. Thus, the rich end up paying more taxes.
    - alexmingoia 6y ago
      Using my logic, tax assessments that don’t change based on income are regressive, and tax assessments that do are progressive. It’s not complicated, and it’s a widely used definition. https://en.m.wikipedia.org/wiki/Progressive_tax https://en.m.wikipedia.org/wiki/Progressive_tax You may think a flat income tax rate isn’t progressive enough, but it’s not a regressive tax.
  - Zanni 6y ago
    It's still regressive because the utility of money isn't constant. A dollar is worth more to someone with less money.
    - alexmingoia 6y ago
      The utility of money cannot be made constant with a tax, so I’m not sure what you consider the distinction between a regressive and progressive tax?