I read a few blogs online and one that is a regular early morning feed for me is John Chow dot Com. Normally I love what he has to say but he has been getting a little political lately.
He recently wrote a blog entitled “The Progressive Income Tax Is Not Progress.”
The problem with progressive income tax is the government has it backwards. It shouldn’t be the more you make the more they take. It should the be more you make, the less they take!
I had to add a comment to this one.
I don’t know about this one. Yes, in theory a tax deduction, or lack of tax increase, would be a great incentive for people to work harder and make the big bucks but it’s not that easy. Not all have the entrepreneurial ability to pop their heads just above the next tax bracket. Whether you’re taxed more or not, the more money you make, the more money you have. That is incentive for you.
So here is the skinny on taxation. If you tax everyone the same then the poorer end of the spectrum, you know the more than 90% of the country’s population will actually be affected negatively because taxes must be raised on their end to cover the lost amount on the wealthier side who generate more than 90% of the income. This mean less net income for most to spend on goods. Now, I am not an expert (well maybe a little) but that is bad if the majority of the country is putting less cash back into the economy.
Look, here’s how it goes. Whether you live in America, Canada, Great Britain or any other thriving economy you have to live by the Tao or Warren Buffet (great book by the way). It is because of the great society in which you live that allows you the opportunity to make so much money for yourself so it is your duty to then give some of that back to better the society in which you are thriving.
Investing in your country is an investment in yourself.
