i don't understand. progressive taxes are based in some logic. but, regressive taxes make no sense?
i don't understand. progressive taxes are based in some logic. but, regressive taxes make no sense?
Ending a statement with a question mark makes no sense.
Um, because it is money dedicated to social security and SSI benefits have a cap.
SSSSS wrote:
i don't understand. progressive taxes are based in some logic. but, regressive taxes make no sense?
Only SS does, SS isn't the entire payroll tax though.
Because the payouts are capped. The system was setup under the belief that this was a private good being managed publicly. This will probably have to change i.e. FICA keeps going up to $250-300k or higher.
As my SS statement tells me in bold print, at current projections they run out of $ in 2037 which is nice, because I will be 71 then.
There are large number of goods which the US will have to decide are either public or private:
1. Stock market liquidity (flash crash raises this issue)
2. TV/Internet access (digital converters are subsidized)
3. Healthcare
4. Retirement benefits, for 40 quarters of labor
5. A functioning banking system
6. The validity of a 'AAA' rating.
etc....
There are plenty of historic examples of market failure and success in the delivery of these goods - the desired policy outcome of maximal minimal distribution of these good is achieved via the market place (market success) or is not (market failure).
rich people vote
albert(o) wrote: rich people vote
So poor people don't vote?
Bingo. Plus, the American people are so brainwashed that they are taxed to the eyeballs that most a) don't know about this, b) won't believe it if you tell them, and c) wouldn't want it changed.
There was a great quote on the radio this morning by a woman asked what she thinks of the current MN impasse (legislature wants to close 87 % of the 3 billion dollar deficit with spending cuts, 13% with a tax increase on those making over 200,000/year; gov says no new taxes). This woman's analysis: "I don't want higher taxes, but I don't want them to cut any programs. I don't really follow this very much."
Ah, the American voter. Clueless, and wanting mutually exclusive outcomes. This is why sometimes I get a bit depressed regarding our ability to fix our long-term fiscal imbalances.
"The best argument against democracy is a five minute conversation with the average voter." Winston Churchill
Because the social security ponzi scheme operates under the false assumption that you are paying into something, it is saved for you and paid out to you later. In reality, it's just another tax that is used to pay all current federal expenditures, including social security.
I stopped paying taxes a little over 10 years ago. I just undereport my income and over-report my deductions. Typically I end up getting more out than I put in. The tax system is really a great hand out tool if used properly by the citizens. You just have to sit down and analyze the tax code for a couple of months to understand all of the loopholes. Last year I paid in $38,500 in taxes and received $42000 tax refund. I LOVE THE USA!!!!
SSSSS wrote:
i don't understand. progressive taxes are based in some logic. but, regressive taxes make no sense?
Progressive taxes are only based on logic if you believe in wealth redistribution.
The logic is that the cost of bare necessities impact poor people more. A carton of milk, container of eggs, and loaf of bread costs $5 whether you're filthy rich or dirt poor, but that $5 hurts the poor person's wallet a lot more.
So maybe the first $25,000 you make doesn't get taxed at all because everyone recognizes that's the bare minimum needed to survive. As you make more, that money becomes less "essential" (so the argument goes) so it gets taxed more.
If you're ridiculously rich, what's the difference between $40 million and $25 million? You still have more money than you can spend. But the difference between $40,000 and $25,000? Huge.
Not saying it's fair or I agree with it, but that's the logic.
Yeah that is the logic, but I can't stand the argument that just because someone makes a lot they should pick up the tab for all the people that don't. Thats horsesh!t.
Madoff wrote:
Because the social security ponzi scheme operates under the false assumption that you are paying into something, it is saved for you and paid out to you later. In reality, it's just another tax that is used to pay all current federal expenditures, including social security.
SS does not operate under the pretense of being a fully funded system. It is and always has been a pay as you go system and nobody claims or acts otherwise. I'm not saying that I like the system, but it does not operate under the assumption that you are paying into something that is going to be saved and paid back.
[quote]No sense at all wrote:
Ending a statement with a question mark makes no sense.[/quote
he was using intonation, the internet form.
iron balls mcginty wrote: he was using intonation, the internet form.
the internet form means grammar rulez dont appli.