Taxes and Justice

This article [via oxidize] has me thinking of taxes a little earlier then April 14 this year. I quote:

“Let’s put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner. The bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this.

The first four men — the poorest — would pay nothing; the fifth would pay $1, the sixth would pay $3, the seventh $7, the eighth $12, the ninth $18,and the tenth man — the richest — would pay$59.”

Here are some random thoughts on taxes, socialism, and the responsibility of the rich:

1. I could soften up on the idea of corporate taxation. Corporate taxes, if you think about it are double taxation as they tax “the corporation” which is really just the shareholders. When corporations get taxed now they simply cannot pay as much out in dividends and they will also “pass the taxes on” via higher prices to their customers. Since corporate income taxes make up only 10% of the revenues the govt. takes in, I think we should eliminate them and all the wastefulness associated with companies needing to know (and get around) all the tax laws.

2. Why is there never talk of getting rid of sales taxes? This is another form of
double taxation (or triple if you use your dividend earnings to buy things)? I am not sure why our founders were so against double taxation but it seems that they would be unhappy with the current situation of being taxed when you earn your money and taxed when you spend it.

3. There is nothing wrong with taxing the wealthy at a higher rate than taxing
the middle and poor. Sure it violates the laws of capitalism, but capitalism
needs to be violated a bit – it needs some socialism added to it. Socialism
has been a part of human history since there was human history. People got
together in groups for the simple fact that they could better survive in
that way – the strong protected the weaker – the rich giving more in for the common good.

4. Instead of complaining about paying taxes, try influencing where the tax money is spent, vote the right way, and think about the future. There is something to be said for the reformation of the political system and the contributions that drive it. When you look at the money that corporations, special interests, and wealthy folk give to all political candidates it is easy to see why most of us feel ignored. If not for the simple fact that people who give a lot of money to candidates expect to be heard and have things done for them.

I don’t know where I was going with all this, but I will let you know when I figure it out.

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