progressive, regressive, flat
As I said before, until you get to really high levels of income, are TOTAL taxes (Federal) are amazingly flat.
Income taxes are progressive; heck, about 30-40% don't even pay significant income taxes.
But payroll taxes are very regressive. I'd like to see someone explain that away.
Now once you get past $90K income (approx) you pay no more Social Security tax. However, you still pay Medicare and your marginal tax rate on income will continue to climb.
For the vast majority of taxpayers, the overall tax system is pretty flat when you factor in payroll taxes and income taxes together.
From a societal standpoint, our system has a lot of merit. Those who are blessed with talent and can prosper under our system SHOULD rightly pay on a progressive basis for that.
Looking at it another way, a society will pay for its ills one way or another. As Jesus said, The poor will always be with us. We can take care of them using our resources, or they will take care of themselves through criminal activity or other ways which will benefit them or society.
|