Sunday, February 7, 2010
Taxation Without Accurate Representation
I personnaly found all the tax talk in class this week really interesting. I can recall watching the news in months past and hearing about different people's ideas for taxing . I think that in some respects, most of these tax types are valid and good ideas in some manner or another; howevers it seems as though there is a down side to all of them, someone always gets stuch with the short end of the stick (which seems to be a reoccurring pattern in multiple aareas of economic theory). At first glance proportional tax sounded the most reasonable to me at first, but when I considered that the flat rare would make more of a negative impact on lower incomes, it doesn't seem like the best idea. Then there's the progressive tax, where your taxes go up as your income goes up, which seems logical- those who make more can spare more, right? But yet again, problems can arise when you put that into practice, as it is harsher on higher incomes then lower. The most interesting I have have heard of is the marginal tax rate, which when I first heard of it I thought would be a horrible idea as it would create an incentive for people to be less efficient. At least that was the picture I got from the guys on the news networks. After Dr. Fleury explained it (and kudos to you for doing so, it makes a lot more sense to me now) it actually didn't seem too bad. The way I understand it now, it would appear to maintain both the fairness aspect of the flat rate, while still being reasonable for both higher and lower income households.
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Personally, I think that proportional income tax would be unfair to many people. The middle class would get the short end of the stick in that case and the rich would stay the rich. I think progressive tax would be the best choice because the more money you make the more you should give away.
ReplyDeleteIn my opinion, every tax type is going to be unfair to certain classes. Progressive tax is the most reasonable and that is just because the more money you make the more money they tend to take out. But is that punishing middle and high classes for making more? There is always going to be that question of fairness. Nothing will ever be perfect.
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