Vexcalibur wrote:
ruveyn wrote:
Vexcalibur wrote:
Paying taxes is a good start.
And what if the tax is an unjust tax?
ruveyn
If you are in the US, then of course, the tax system is unjust because the rich should be paying more. In that case, in addition to paying taxes, donate some of your time or something.
Let's say you and I both make a dollar an hour. You work 60 hours and I work 40 hours. You worked 50% harder than I did and consequently earned 50% more than I did. This is just.
With a static 20% income tax rate, I pay $8 and you pay $12. I have now earned $32 and you have earned $48. You worked 50% harder than I did and consequently earned 50% more than I did. This can also be considered just.
Let's consider a progressive tax. To make my example relevant, we'll make it 20% for <=40 and 25% for >40. I have now earned $32 as before since I remain at 20%. But you are now at $32 (80% of your first 40 hours) plus $15 (75% of your additional 20 hours) for a total of $47. You worked 50% harder than I did and earned less than 50% more than I did. This is not just -- you have been devalued in my favor.
Up until you are financially independent (around $1.5-2M), you pay a higher tax rate. After that, your rate generally goes down since your income is based on capital gains rather than labor.
Capital gains tax is less to encourage investment into capital goods. This is good for the economy and increases tax revenue.
The rich already carry a disproportionate amount of the tax burden in the US. Making them pay even more is not just.