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- From: smith@minerva.harvard.edu (Steven Smith)
- Subject: Re: Communist Progressive Tax System
- In-Reply-To: 4224_5201@uwovax.uwo.ca's message of Tue, 26 Jan 1993 01:52:40 GMT
- Message-ID: <SMITH.93Jan28135849@minerva.harvard.edu>
- Sender: usenet@das.harvard.edu (Network News)
- Organization: Harvard Robotics Lab, Harvard University
- References: <61TVXB3w165w@ersys.edmonton.ab.ca> <C1Eoz0.H7I@mach1.wlu.ca>
- <C1F6qD.DBI@ecf.toronto.edu> <1993Jan25.215240.1@uwovax.uwo.ca>
- Date: Thu, 28 Jan 1993 18:58:49 GMT
- Lines: 28
-
- 4224_5201@uwovax.uwo.ca (John LaRocque) writes:
-
- > A graduated income tax goes against the very principal of equality.
- > Here is an example of an ideal tax system (if there ever were one).
- >
- > Neil earns $300 dollars, Bob earns $600 dollars. Fairness demands
- > that the state not interfere with Bob's paycheque simply because he
- > earns more. Besides, that's communism.
-
- Your simple story ignores the most basic of economic realities (and
- _that's_ communism!). Let us tax Neil and Bob at a rate of 30%,
- leaving the disposable incomes of $210 for Neil and $420 for Bob.
-
- Now ask Neil and Bob for another $10. ``No way!'' says Neil, who
- sorely needs the $10 to live comfortably. ``Let me think about it''
- says Bob, who doesn't wish to part with the $10, but can get by
- without it. Clearly, Neil values his $10 more than Bob does. And
- Bob's membership in society is clearly more financially beneficial
- for him.
-
- So there is a sense, without invoking any redistributive nonsense or
- casting aspersions on Bob's relative success, in which the state may
- fairly demand more of Bob than of Neil. How much more, of course,
- must be decided through the political process. That said, however,
- I doubt that many Western governments could justify their taxation
- rates with this argument.
-
- Steven Smith
-