Marginal Utility of Progressive Taxation - Not

[Martin Hash]

Every time economists predict what is the "best" use of other people's money under the guise of esoteric logic, they are engaging in the same kind of totalitarian hubris that governments are often guilty of. Taxation is a personal issue to everyone who has to pay them because it is primarily a limit on liberty. Liberty issues should only give way to more important liberty issues. For example, aristocracies reduce liberty by concentrating opportunity, so the need for progressive taxation to counteract this threat is justifiable. Conversely, other supposed reasons for progressive taxation that are based on moral values, like fairness, actually degrade liberty. However, the most insidious threat to liberty are the seemingly reasonable "scientific" justifications for progressive taxation, such as the Marginal Utility Theory, which provides cover for the socialist fairness people. In short, valid taxation arguments tend to maximize liberty, while specious ones undermine it.

[katarn]

So what tax is best (under Franklins assumption they are a surety)?

[Martin Hash]

No regressive taxes, like Sales Tax, and 1st-Dollar taxes (SS, Medicare). Only progressive taxes (taxes that primarily take from the wealthy) like Income Tax. And no business taxes: business is an imaginary construct to create commerce & jobs, and should not be discouraged.

[katarn]

No regressive taxes, like Sales Tax, and 1st-Dollar taxes (SS, Medicare). Only progressive taxes (taxes that primarily take from the wealthy) like Income Tax. And no business taxes: business is an imaginary construct to create commerce & jobs, and should not be discouraged.

Sounds pretty good to me. How would you structure income tax?

[Martin Hash]

Pre-Reagan Progressive Tax code.