tag:blogger.com,1999:blog-4491040877840120845.post2750099621277832477..comments2024-03-16T17:47:07.792-04:00Comments on Stationary Waves: How To Prove Everyone's Taxes Need To Be RaisedRP Longhttp://www.blogger.com/profile/15028013805248797978noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4491040877840120845.post-62582333289303522232012-12-06T08:50:04.537-05:002012-12-06T08:50:04.537-05:00Why do you say I "fail to even recognize"...Why do you say I "fail to even recognize" that there is more than just income taxation? You may benefit from reading my post on understanding the purpose of using examples in the context of making a point: http://www.stationarywaves.com/2012/11/personal-experience-forest-trees-and.html<br /><br />Here's a proposition: Perhaps you can start by illustrating in no uncertain terms - no math tricks, no clever denominators - EXACTLY how taxation is regressive over all? Then, once I understand your claim, I'll respond to it.<br /><br />Additionally, you say that taxes shouldn't be about what's fair, and then you go on to talk about forcing the wealthy to do certain things. Are you sure you're NOT talking about what you think is fair?RP Longhttps://www.blogger.com/profile/15028013805248797978noreply@blogger.comtag:blogger.com,1999:blog-4491040877840120845.post-59659071417105927762012-12-06T05:16:43.515-05:002012-12-06T05:16:43.515-05:00You fail to even recognize that there is lot more ...You fail to even recognize that there is lot more to taxation than federal income taxes. All taxes, whether it's corporate tax, VAT, or any other, is paid by the end consumer. Low income earners spend a larger percentage of their income on consumption than wealthy, so when you take that plus a sales tax into consideration the system is regressive overall. This is why we have a progressive tax to offset the regression.<br /><br />Additionally, taxes shouldn't be about what's fair. Its about what makes economic sense. Progressive taxes work because it forces the wealthy to invest in their businesses and pay their employees higher wages, or face higher taxes. It doesn't take a genius to look at tax levels across all 50 states and compare it to median wages and quality of life statistics to see what works and what doesn't.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4491040877840120845.post-91650178603290931492012-11-14T12:58:07.614-05:002012-11-14T12:58:07.614-05:00Haha... Brilliant. Well said.Haha... Brilliant. Well said.RP Longhttps://www.blogger.com/profile/15028013805248797978noreply@blogger.comtag:blogger.com,1999:blog-4491040877840120845.post-14106933553865571492012-11-14T08:36:07.558-05:002012-11-14T08:36:07.558-05:00The working definition of 'fairness' for m...The working definition of 'fairness' for most more or less corresponds to 'would raise taxes on everyone who makes more than me, but on no one who makes what I make or less'. This can lead to a mathematical proof that if only 'fair' changes to the tax code are ever allowed, the resulting one-way ratchet/filter will inevitably cause the tax incidence function to become a very steep and confiscatory step-like function.<br /><br />To a lot of people, tax-code changes that hit them (and some people making a little less than them) can also be deemed 'fair', essentially because the result will have the pond-shrinking/bigger fish effect I discussed here:<br /><br />https://rwcg.wordpress.com/2012/11/13/the-calculus-of-shooting-ourselves-in-the-foot/<br /><br />(This is why the super-wealthy favor higher taxes; even though it takes their money, it more importantly keeps down the nouveau-riche)<br /><br />The result of the above dynamics is that all tax-code changes that make the tax incidence curve *more* like (in L2-space, say) '100% tax on every dollar made over X, 0% tax on every dollar made under X' (say X=100k or 150k or 90k or something more or less middle-classish) will tend to pass the 'fairness' test of a majority of people. And all tax-code changes that make it less like that, will be voted 'unfair' by a majority of people.<br /><br />A shorthand way to say all this is that 'fair' just means communist.Anonymousnoreply@blogger.com