quote:Originally posted by MOBY:quote:Originally posted by teyates:
No you just paid 20% of your earning (2000 of 10000 would be 20% not 2%.
No. We both spent $2,000 even though I had an additional $10,000. Therefore, if the tax were 10% (I said "assuming a tax rate of 10%"), we both paid $200 in tax. That is 10% of his remaining income (which is the whole additional $2,000 he spent) and 2% of my $10,000 that I have remaining because I only spent $2,000 of it as well. On top of that, I have $8,000 left that I can earn interest on.
By the way, additional taxes on a higher income would not deter me from working harder. They are not taking away 100% so I still end up being better off. And the additional % is marginal as I would still have to pay the lower rate on it whether I got bumped into a higher bracket on that portion of my income or not. Plus, I was always taught to do my best so half a**ing it is not in my nature. I will say, though, that if it comes down to whether it is worth it to someone, then they clearly have more important ways to spend their time (family, fun interests, etc) and likely should not work more anyway. Life is too SHORT! Gotta have balance and draw the line regardless of how much money is involved.
I think I undertnd what you are saying, but 10% is 10%. And 10% of $1000 is much less than 10% of $100000. By the time you give the the exemptions for cost of living which are given rightly so to both the lower and uppoer earners the lower earners end up paying a less percentage of their income, yet they all share the benefits of the taxes equally (os hsould). Then along comes the government, in an effort to redistribute wealth, they give out food vouchers, clothing vouchers, free healthcare, and then earned income credit for children. This creates a system where there is no incentive to do better. Many people, including young single mothers find it easier to have another a child, draw more money, and allow the taxpayers to help care for the child. I do not begrudge the care the government is giving, but we are creating a situation where in the next few generations the vast majority of people in this country will be totally dependent on the government for everything they do and have.