Does Taxing the Wealthy Hurt the Lower Class ?

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ruveyn
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10 Jul 2012, 11:04 pm

Vladimir wrote:
Why do Americans tax everything?


Nonsense! Americans buy a lot of stuff and take very little. Also the people of the U.S. have been taxed heavily to give stuff to people of other countries. Think about the Marshall Plan for example. And whenever there is a natural disaster American plans loaded with emergency goods are dispatched immediately.

If the United States had wanted to become the New Rome following WW2 (or as you would put it, The Great Patriotic War), you would have known about it.

We missed our chance. We should have become the new Rome and imposed 200 years of peace, a Pax Americana on the world. We didn't and we blew it.

ruveyn



10 Jul 2012, 11:08 pm

ruveyn wrote:
Vladimir wrote:
Why do Americans tax everything?


Nonsense! Americans buy a lot of stuff and take very little. Also the people of the U.S. have been taxed heavily to give stuff to people of other countries. Think about the Marshall Plan for example. And whenever there is a natural disaster American plans loaded with emergency goods are dispatched immediately.

If the United States had wanted to become the New Rome following WW2 (or as you would put it, The Great Patriotic War), you would have known about it.

We missed our chance. We should have become the new Rome and imposed 200 years of peace, a Pax Americana on the world. We didn't and we blew it.

ruveyn


Thank you for explaining that to me. But I would not be in favor of a Rome' America. Rome did very little to cause peace but where imperialists.



ruveyn
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10 Jul 2012, 11:12 pm

Vladimir wrote:

Thank you for explaining that to me. But I would not be in favor of a Rome' America. Rome did very little to cause peace but where imperialists.


Not true. Look up Pax Romana sometime. Rome keep the peace in its empire for nearly 200 years and kept commerce and trade moving very nicely along its very good roads. The Romans invented the autobahn or more precisely, the chariot-bahn.

ruveyn



10 Jul 2012, 11:18 pm

ruveyn wrote:
Vladimir wrote:

Thank you for explaining that to me. But I would not be in favor of a Rome' America. Rome did very little to cause peace but where imperialists.


Not true. Look up Pax Romana sometime. Rome keep the peace in its empire for nearly 200 years and kept commerce and trade moving very nicely along its very good roads. The Romans invented the autobahn or more precisely, the chariot-bahn.

ruveyn


Just only 200 years of peace. The rest well a complete mess.



Oodain
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10 Jul 2012, 11:19 pm

they were by defintion imperialistic, they even labelled themselves as such.
we can quickly agree that in some cases it were for the better for the local populations in the long run, i dont think the first generations under roman rule had quite the same view of it.


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ruveyn
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10 Jul 2012, 11:19 pm

Vladimir wrote:

Just only 200 years of peace. The rest well a complete mess.


That is more peace than even Great Britain managed during the time when it was an Empire.

Worry not. We will all have lots of peace when we are dead.

ruveyn



10 Jul 2012, 11:34 pm

ruveyn wrote:
Vladimir wrote:

Just only 200 years of peace. The rest well a complete mess.


That is more peace than even Great Britain managed during the time when it was an Empire.

Worry not. We will all have lots of peace when we are dead.

ruveyn


The british where more imperalistic. They never got the whole peace thing right. But Russia was to. All countries in some point in time were.



marshall
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11 Jul 2012, 1:02 am

SilverStar wrote:
visagrunt wrote:
SilverStar wrote:
visagrunt,

To answer your questions:

Cutting the size of government - I wasn't actually talking about privatizing national programs. What I was referring to, was cutting out the waste, unnecessary programs, and streamlining the government. What jobs that are lost in the process, would then be transferred to other industries in the private sector. I know this isn't as easy as it sounds, and can't happen overnight, especially with the economy being in the shape that it's in, but I think that it is necessary.


Name two.

Governments the world over have been looking for the easy cuts and were all made, long ago. There are no easy cuts left.

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About the taxes - As far as any flat tax goes, the aim is to streamline the code, and to prevent unfairness in the system. It's not really the government's job to manipulate the code and pick and choose who gets extra money, and who doesn't. The government should be neutral on these things. Like you said, with a national sales tax, the only things that should be exempted, are the basic necessities of life, nothing more. Adding tax rebates to people below the poverty line does help many people, but it also creates a lot of people that are entitled and dependent on the government, so I am not sure that's would be a good idea.

Also, with a flat tax, the burden on everybody is equal (everybody pays the same %), but the rich will still pay more than poor people, simply because they make more.


Flat taxes penalize the poor, because they have to spend a larger proportion of their income on necessities of life. I don't disagree with you on simplification, but flat tax is enormously unfair and wrongheaded.




First of all, I never said any cuts were easy, and there are plenty that won't be easy, but they will probably be necessary. A couple areas here in the US would be defense, the IRS (simplifying the tax code would probably do this anyways), and government pensions.

When you say that a flat tax is enormously unfair, you are only looking at it from a single perspective. I will ask you this. Is it fair for a single person making $30,000 to be taxed at 25%, while another person making the same amount, with two kids, doesn't pay anything? Why does the person with two kids deserve more money over a single person? What if that single person can't have kids, or has social problems that interfere with them finding a mate, to even have kids with? Is that fair to them? Who is the government to make that decision? Like I said, the government should remain neutral on these things.

Also, I think we both agreed that basic necessities would be tax exempted, so this would kind of void the argument about them spending more for these things.


You're confusing simplicity with fairness and real-world practicality. Having everyone pay the same "flat" percentage is just as arbitrary a standard as having everyone pay the same exact amount. The real issue is how do you structure the tax code to generate the needed revenue to support those government functions the nation agrees are vital.



simon_says
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11 Jul 2012, 10:08 am

Yes, flat taxes have little to do with fixing the deficis and more to do with shifting burdens. An old dream for very high income people. Anyway, whatever paper scheme someone comes up with, call it the flat tax, the 4th dimensional tax, or the gum drop tax, the net result has to be more revenue not less.

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In his campaign for the Republican presidential nomination, Mitt Romney has proposed permanently extending the 2001-03 tax cuts, further cutting individual income tax rates, broadening the tax base by reducing tax preferences, eliminating taxation of investment income of most individual taxpayers, reducing the corporate income tax, eliminating the estate tax, and repealing the alternative minimum tax (AMT) and the taxes enacted in 2010’s health reform legislation


Extending the Bush cuts will cost $3.3 - 4 trillion over 10 years. The tax policy center says Romney's proposed cuts will cost *another* $3 trillion on top of that.

With a deficit of ~1.2 trillion, a budget of ~3.5 trillion, and a ~15 trillion debt.... we are going to substantially lower taxes again?



Oldout
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11 Jul 2012, 10:23 am

marshall makes a very good point. We need to tax at a level that supports the government functions we choose to have.



ooOoOoOAnaOoOoOoo
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11 Jul 2012, 10:47 am

SilverStar wrote:
The rich, poor, middle class, and government employees, are all dependent on each other. The problem is, when a large percentage of people are taking more money out of the system than they are putting in, this places a larger burden on everyone else. This is unsustainable.

A couple soultions to fix this would be:

*Reduce the size of government, and place more of the government workers in the private sector. Government employees actually put some of the money we give them back into the system, but in general, I think they consume more than they produce. This is basically like a private company that forces you to buy their product, whether you want, or not.

*Go to a lower flat rate tax, and reduce, or eliminate credits, deductions, and exemptions. This can be done in the form of an income tax, or a sales tax. Many will argue that this will increase the taxes on the poor (which it does), but many of them aren't paying any income taxes. They should have at least some skin in the game.

You have to keep in mind, there is only a certain amount of money in print. Moving people from the government jobs to private sector ones means they would still need to be paid and want a pension and all that. Who is going to pay for it? Big corporations? Their shareholders come first, not their employees.



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11 Jul 2012, 12:07 pm

ruveyn wrote:
visagrunt wrote:

Flat taxes penalize the poor, because they have to spend a larger proportion of their income on necessities of life. I don't disagree with you on simplification, but flat tax is enormously unfair and wrongheaded.


Levy a flat tax on incomes over $100,000 / year. Everyone below pays nothing. A ten percent tax should take care of all necessary operations. We should also eliminate most of our military budget.

ruveyn


Even I could live with that.



JWC
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11 Jul 2012, 12:13 pm

ooOoOoOAnaOoOoOoo wrote:
You have to keep in mind, there is only a certain amount of money in print.


This is entirely false. The federal reserve monitors and adjusts the amount of money in circulation. The amount is not fixed nor is it tied to any type of 'real' asset.



Oodain
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11 Jul 2012, 12:56 pm

deosnt change the fact that at any one time there is only a certain ammount it is not dynamically created.


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11 Jul 2012, 12:59 pm

Oodain wrote:
deosnt change the fact that at any one time there is only a certain ammount it is not dynamically created.


Sure doesn't...but I don't think that's what Ana meant. Ana, correct me if I'm wrong.



TM
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11 Jul 2012, 2:57 pm

The thing with taxes is that there is a "sweet spot" and if you cross that in either direction you get negative consequences. In the case of the US the tax income is not sufficient to run the big government that Americans vote for every election. And no, most republicans are not for small government.

In the case of some other countries, the tax level is completely separate from the governments need for income and put so high that it discourages small/medium businesses. In this case the taxes end up being a tax on working capital.

Although, I think capital gains should be tax free, since the person already had to pay once for the original investment capital and paying tax because you invested/saved the money is like paying tax on it twice.