More nonsensical: tax inequality or income inequality?

Income inequality is a healthy thing in a free society. The more choices people have, the more varied the outcomes, naturally.

 

Both can be good. Not everyone can be rich in a free country. But at the same time they can be taxed alot more than the poor. I think the U.S has a decent system, we just need to add on more taxes to the rich to drive down the national debt.

 

What kind of rates do you have in mind?

 

There aren't enough rich people to tax to even balance our current budget, let alone start paying down the debt.

 

This is about as plain as you can get. It's like saying drinking Red Bull is good for you, because it gives you an energy boost, without mentioning what happens when you drink too many (or if the Red Bull is poisoned and the income generated comes principally from financial services, which marginally speaking, is socially harmful if you + their "contribution of liquidity into opaque securities only casino gambler like financiers trade in" with about their - of crashing the economy every 5 years or so).

 

The trick is to tax and regulate so this doesn't happen again (the debt being the result of the largest private market failure in history).

 

40% for 250,000+
50% for 400,000+
25% for 249,999 or less.
50% on Capital gains.

 

So your saying someone making 225,000 should bring in substantially much much more then someone making 250,000?

and that someone making 249,999 while not only bringing in more money then someone making 250,000 (much more)..
But your saying they will only make around 13,000 less than someone making 400,000. Your crazy

Here watch this video by Dr. Benjamin Carson (a brilliant man) while he criticizes Obama care (to Obamas face) and makes tax sense too while also going on a barrage about political correctness

<iframe width="560" height="315" src="http://www.youtube.com/embed/PFb6NU1giRA" frameborder="0" allowfullscreen></iframe>

 

So, someone making $10,000/year should be paying $2500 in taxes?

 

Poor people don't pay income tax now anyways, they usually get a refund. Of coarse they will not have to pay that much that is what deductions and tax credits Are for.

 

An interesting question. In my view, the purpose of government is to make the lives of the citizens better in situations where individuals and organizations acting independently would fail. It exists to create the conditions necessary for us to live happy lives.

Right now, we have a problem. The lives of the very richest Americans are very good and getting better, while the lives of everyone else are stagnating and getting worse. Because of a combination of government policies and macro-economic trends, the current arrangement is failing to work the way it's supposed to - it's not making the lives of most people better.

Needless to say, I would much rather live in a world where the income gap fell naturally, a world in which the benefits of innovation and increasing productivity accrued to everyone. Unfortunately, that's not the world we live in, and until it is, those who have benefited fantastically from the current arrangement can afford to pay a little more in taxes to help those who aren't doing so well.

Specifically, I would like to see capital gains taxed at the same rate as income, a cap on deductions, and a reduction of the corporate tax rate to 10% for every corporation with no exceptions, deductions, or loopholes.

 

Income tax is taken from poor, middle, and rich folks when they receive their income. I'm not poor and I still receive a refund.

Of course, the govt doesn't refund all of the money they take from your income check. The refund represents inaccurate withholding of your taxes every pay period, plus tax credits claimed. If your withhold taxes more accurately you'll get less of a refund or no refund at all.

 

True, but part of the problem comes when, due to EIC and other refundable credits, the refund ends up being much larger than what the individual had deducted from their paycheck.

We have to stop fully refundable credits that cause a situation where somebody pays in $3,000 and gets a $6,000 refund.

 

Absolutely agree with you. The tax code needs serious reform.

 

Apparently, you don't know how taxes work in our system. Everyone pays the same percentage on each marginal dollar, so a higher rate in the higher tax bracket is only applied to each marginal dollar above the bottom of that tax bracket. This way, the scenario you outlined wouldn't happen.