Re:Netflix Made Record Profits in 2020, Paid a Tax Rate of L...
by RHSeeger on Monday April 05, 2021 @08:14AM
(#26697994)
> Then you have progressive tax that is preventing you from saving much - if you want to save for a deposit to buy a house, spend time on education and getting a better job, you'll get hit by much higher tax and it will take ages to save anything.
I'm having a hard time understanding the logic here. The government needs a certain amount of money to run [1]. If you make the tax rate flat then, in order to bring in the same amount of money, the lower incomes _must_ pay more taxes. While I'm open to an argument that this is false, I cannot come up with any way it could possibly be. As such, your argument seems to be
> When a person makes over X amount of money, a progressive tax makes it hard for them to save any of that money over X because the amount they make over X is taxed higher. As such, we should tax earnings below X higher, so there's less of a jump.
And that ^ argument makes no sense to me.
[1] This is arguable, but it's fair to say that the amount the government needs is orthogonal to whether taxes are progressive or not.
I'm having a hard time understanding the logic here. The government needs a certain amount of money to run [1]. If you make the tax rate flat then, in order to bring in the same amount of money, the lower incomes _must_ pay more taxes. While I'm open to an argument that this is false, I cannot come up with any way it could possibly be. As such, your argument seems to be
> When a person makes over X amount of money, a progressive tax makes it hard for them to save any of that money over X because the amount they make over X is taxed higher. As such, we should tax earnings below X higher, so there's less of a jump.
And that ^ argument makes no sense to me.
[1] This is arguable, but it's fair to say that the amount the government needs is orthogonal to whether taxes are progressive or not.