Can the tax system be used in redistributing income?

Question

i really want to know if there are articles supporting the fact that the tax system can be used in redistributing income

Answer 1

communists tried it but failed

the problem is too many people are greedy

and they are usually funding the re-election campaigns

Answer 2

yes, and they will probably increase interest rates while passing out checks, and they can fool the general public that they are fighting inflation

Answer 3

The tax system could be used to redistribute income... just get rid of tax exemptions and tax all the rich and give it to the poor.  Pretty simple, if you wanted to ruin the economy of whichever country you were doing this in.  Three cheers for communism!!!!!!!!!

Answer 4

Redistributing income per the tax code? Are you a Socialist? Do you believe that Government can create a Utopia through mandates and grand plans?  Good luck, its been tried 1000x and always ends in disaster for the country and their economy (Cuba, Russia, Zimbabwe, etc)...

Economic growth and prosperity mandates that you have Rich people, middle class people, and poor people. The rich have the capital to invest (ie: create businesses). The Middle Class work in those businesses or setup supporting businesses (ie: Sandwich Shop next door to Merrill Lynch). And the poor are the potential middle class which depends on a number of factors such as Motivation, Education, Opportunity, etc... Consider the poor as the Middle Class Reserve. If all the jobs that exist are taken, those without jobs default into poverty. When the rich create new businesses, the poor fill the ranks and become middle class.

So that means, restrictions via tax codes or socialist utopian ideals to milk the rich to feed the poor will fail. Not only that, it will clog up the investment cycle that creates opportunities for the poor to move into the middle class.

To Recap:

The Rich Create Jobs.

The Middle Class work in those Jobs.

The Poor are leading indicators on if enough jobs exist.

Case and Point. During the DotCom boom, money was flowing and new businesses and industries were coming online. The unemployment rate dropped to something like 3.5%-4%. Finding a job was a question of if you had a pulse, you had a job.  Thus the rich created new business, the poor flooded into those jobs and became middle class.  Then when the DotCom boom ended, companies closed shop, people got laidoff, unemployment rose, and the ranks of the poor swelled.

Just remember this, Government policies often hurt the economy in their quest to create utopia more often than if they just left well enough alone.

Answer 5

I do not believe that there is an article that would cover such an issue, but what you can look into is the history of our tax system and you will find that it is illegal to begin with and as such the money does not go back to the government on April 15th.  

One of the best books I have seen about this subject is "Goodbye April 15th".  It will explain why they are illegal, how our money system lost its value, and best of all what you can do about it.  Enjoy......