kenneal - lagger wrote:
The point I was making isn't about whether or not the taxation comes down to the buyer in the end it is about the distribution of the taxation among the population. What I should have added in is that there should also be a fairer distribution of income tax and also a fairer distribution of income as well.
No one, no matter how hard or cleverly they work, can work hard enough to deserve 400 times the income of their lowest paid employee . And that is what the earning distribution is in most companies now.
We have found that with the covid crisis where the lowest paid employees, probably farm and care workers and hospital cleaners, are the most essential workers that we have. Without them our society would collapse. When would society collapse first? If we did without directors and CEOs or if we took out farm and care workers and cleaners? I would say that in the current situation we can do without those at the top and even in a more normal situation we could do without those at the top for longer than those at the bottom of the wages pyramid
If the tax burden falls entirely on those at the bottom of the pile, through purchase tax and income tax, they have less to spend on stuff so that the foundations of the pile, the spending of those at the bottom, disappears and the whole pyramid collapses. Those at the top of the pyramid have to pay their fair share of tax to allow those at the bottom to be able to prop the pyramid up.
Well you have to define what is a fair level of taxation and income.
I see a combined state, federal & local income tax rate of over 35% as unfair
After all a top combined rate of 25% would have someone making a billion dollars in a year paying $250 million dollars. That is progressive enough for me.
Then on the income side you would have the inventor of a product worth a billion dollars paid the same as the janitors?
That has been tried and does not work. Back in the days of the Soviet Union some of the satellite republics removed all the bureaucrats and top managers sending them off to retraining /death camps and replaced them with party hacks that had been former field workers.
As they had no training for their new jobs they failed miserably and it quickly deteriorated into corrupt non-productivity. Corruption being easier too learn then management ability.
As a rich person consumes more and more expensive things then a poor person they pay more sales tax and income tax then the poor person and the things and services they buy are bought from the poorer persons so they support them by the jobs they provide.
The pay of essential workers should be increased and their rents (a major component of which is property tax) reduced but that should not come from some increased or new wealth tax.
Now bankers shuffling money around without actually providing any value to their customers and similar operations are another discussion altogether.