🚀 go-pugleaf

I think the person paying the $1425.00 wishes he was paying the
$10,500.00

Who contributed more to the government.  Who provided funds for
additional jobs or maybe even a salary increase.

Where is your ambition

collins@zeke.paros.com (Jeffery A. Collins) wrote:

>Maureen Eagle (maureen@mathcs.emory.edu) wrote:
>: 1.  Exemption for food/housing means that a very POOR family using
>: few consumer goods (buying clothes at thrift shops for $3, buying
>: food and housing with their money, and using wits and imagination
>: for entertainment instead of Nintendos and movies) would pay much
>: less than 15% of their income.  Ditto for the frugal saving for
>: their primary residence (which would also be exempt from taxation).

>    It seems to me that there is a flaw in this argument.  A consumption
>tax is regressive for the following reason.  If your income was near
>the poverty line you will probably need to spend most of it to simply
>service, hence your tax rate will be near 15%.  If your income is very
>high, you will certainly spend much more money than a very poor person,
>but you will also be able to save and invest a much higher percentage of
>your income.  This would place mean your tax rate would be much less than
>15%.  In other words, the poorer you are the more you will pay in tax as
>a percentage of income.

>    Take the following examples:

>	Income:		$10,000
>	Expenses:	$ 8,000
>	Tax:		$ 1,425
>	Real Tax Rate:   14.25%

>	Income:		$100,000
>	Expenses:	$ 70,000
>	Tax:		$ 10,500
>	Real Tax Rate:	 10.50%

>    Jeff

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