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From: mcb@styx.UUCP (Michael C. Berch)
Newsgroups: net.legal,net.taxes
Subject: Re: Abuse of social contracts. (tax system)
Message-ID: <110@styx.UUCP>
Date: Thu, 14-Feb-85 00:08:25 EST
Article-I.D.: styx.110
Posted: Thu Feb 14 00:08:25 1985
Date-Received: Fri, 15-Feb-85 05:29:47 EST
References: <2748@dartvax.UUCP> <445@ahuta.UUCP> <399@lsuc.UUCP>
Organization: Lawrence Livermore Laboratory, Livermore, CA
Lines: 34
Xref: watmath net.legal:1399 net.taxes:661

In article <399@lsuc.UUCP> dave@lsuc.UUCP (David Sherman) writes:

> ... A fixed percentage causes hardship for those with
> low incomes. The progressive system of brackets and marginal
> rates is perceived as the "fairest", and is used in both the
> U.S. and Canada.

Perceived by whom? I can't agree. There is something
democratically satisfying about the idea that both moreAAND less
fortunate people pay the same percentage of their gross income to
the government to support its basic services. 

I think there is even economic justification for a "regressive"
tax, e.g. 20% on the first $15,000, 15% on the next $30,000,
etc., on the grounds that higher-income people simply don't
consume government services at a linearly-proportional rate.
Does a person earning $100,000/yr consume FIVE TIMES as much
tax-supported public services (police/fire/school/defense/
environment/etc.) than a person earning $20,000? No way. Yet he
will pay (without cheating or abusive shelters) more than five
times as much tax.

Now I don't think that a regressive tax is likely to be enacted,
but a flat tax would at least be a step in the correct direction.
Once we get away from the idea that taxes should be used to
redistribute the national income and achieve broad policy
objectives, and return to the original justification for taxes,
which is to provide revenue to run the government on, I'll pay my
share with a smile.

				Michael C. Berch
				{akgua,ihnp4,sun}!idi!lll-tis!mcb
					      ...!idi!styx!mcb
				mcb@lll-tis.ARPA