David's recent post about inequities in the tax code reminded me of one of my own, about inequities in wealth distribution. I quote myself:
Is it moral, for example, for a single person to own everything and have employees making just enough to survive. That isn’t likely to happen, of course… but the question is, do we have a moral obligation to avoid extreme wealth disparity?
I also quote David's response:
What I am saying instead is that the distribution of wealth and within society may or may not be morally optimal, but intervention by the government is itself immoral.
So, taxation is immoral (unless it is voluntary). Following this logic, isn't it a preferred choice to immorally take money from fewer people? If less people are taxed, fewer acts of immorality are occuring. Isn't that a better result than more people being taxed?
Also, a couple more points:
Benjamin Hackett, by way of David, sez:
The top 50 percent of wage earners pay 96.54 percent of all income taxes.... Based on 2003 Internal Revenue Service data, the top 50 percent of wage earners included all individuals and jointly filing couples earning $29,019 or more.
I'm curious to know if Mr. Hackett has the faintest idea what a couple living on 29 grand would be going through. I know I don't. I've got no problem having some sort of cutoff, below which no income taxes would be paid. Should it be lower than 29,000? I don't know. But certainly not much lower.
I would add that this statistic refers only to federal income tax. He makes no claim to know what the pie looks like when you throw in state income tax, county income tax, local income tax, gasoline tax, real estate tax, vehicle tax, cell phone tax, and sales tax. Anyone want to suggest what percent of the money brought into the various state governments from lotteries are from people below the 29,000 level?
One more:
Some people will balk at this next statement, but it is empirically sound. There is no way to cut taxes on the lower-income 50 percent of this country when the lower 50 percent do not pay any income taxes!
I don't know about balking, but I can certainly refute it. People at every level, even those living the sweet life at $29K per year are paying taxes out of every paycheck. They just get the money back in April of the following year. (Or do I not understand the system of witholding?) So, if we were to cut taxes for these people, they would receive the time-value of that money for the 8 months (on average) that the government holds the cash.
Also, and this is the one that makes me chuckle, it would be less expensive for the government to do it that way, since they wouldn't have to take the funds and then give them back.
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