Why r income tax rates higher for higher incomes?

Question

Any rejoinder to the answer that takes a totally opposite view?

Answer 1

It's based on ability to pay. Poor people don't have to pay as much, since it would more significantly affect their ability to put food on the table. For rich people, it might only affect their ability to take 2 vacations a year instead of 3.

Answer 2

The shouldn't be.  I understand the "ability to pay principle".  But, I am more enamored with the "benefits principle".  Along with this principal, higher income people would pay more tax, but that's because they would have more of a benefit for police protection and the such because their assits are worth so much.  It's not fair that those that worked hard have to pay more and get the same in return, just based on principle of the "ability to pay principle".

Answer 3

Most other taxes are regressive. that is  lower income people pay  a higher fraction of their income  in excise taxes, sales taxes, payroll taxes, property taxes so in part the taxing higher incomes at a higher rate   levels out the tax burden. Also it is generally  assumed that money has a diminishing value the more you have so high income people  will miss the money less; Some people (Warren Buffet)  also makes the argument that  high income people  could not earn their high incomes  were it not for  the economy  in industrialized countries, so they profit most from living  where they do. Sort of " to much is given much is expected in return" argument.

Answer 4

The standard textbook answer is that income tax rates are higher for higher income levels because of the so-called 'ability to pay principle". People with higher incomes can afford to pay more taxes because they really sacrifice little since the marginal utility of income declines with increase in income. Some may say that higher income people actually enjoy higher benefit because of the Govt. and hence should pay taxes at higher rates and calls this as the' benefit principle".

Actually however, these principle are no principle at all. They are not based on any rationale whatever. They are prounced by intellectually weak or dihonest or jealous philosophers as a mechanism to cheat people and yet become popular. Even the argument of higher incomes means higher ability to pay or higher benefit is no argument at all. The term progressive or regressive is used by them to popularise these socalled principles that have no basis in terms of justice or equity or fairness. These are simple arguments by philosophers who sought to gain patronage and favor from the State or the King or the Govt. or the rulers.

Second, there is hardly any justification for the Govt. or Ruler to collect taxes from the citizens. Tax is nothing but the same thing as the maffia collects from the unarmed people as a fee for not commiting other oppression on the latter. Who ever wants to become King or the President or the Prime Minister or the Chief Minister must run the Govt. from his or her own income. If he is poor, let him first become rich enough to spend money for the citizens out of his own pocket. Being the Ruler is one of considerable value and if someone wants to derive this value he/ she must pay for it out of his own pocket. Enjoying political power at the cost of others' money is pure robbery that has been legalised by the clever political philosophers.

Third even if tax has to be collected to fund the Govt. income should not be taxed at all. People should be allowed to earn as much income as is possible legally without having to pay taxes on their incomes.

Fourth, a single uniform income tax rate (leaving the poor outside the tax net) is adequate. Why should the political ruler enjoy the benfits of high incomes earned by businesses and individuals.

Fifth, if the Govt. does provide common goods to the people at large, everyone is open to use the same extent of benefits, why should someone with higher income should pay higher taxes? If the Govt. wants to make higher net revenue from the rich people, let the rich people be provided with higher benefits or better quality of governance service and the such charges be sold at higher prices to rich people. All these can be designed properly in this 21st century. Let the poor be free riders but all people above a certain income should be charged on cost plus basis, where the costs will be subject to scrutiny be apolitical experts.

Since there is no scientific basis that justifies taxing incomes or taxing higher incomes at higher rates, the only reason today for the so-called progressive income taxation is legalising extortion in the interest of the Rulers rather than the ruled. How long will such mass scale legally organised oppression continue. Please not I am a poor person from a poor country.