How is it less fair if the end result is the same? If we decide that families of 4 earning $10k actually need $20k to survive, how is it more or less fair to charge them $2k in taxes before giving them $12k than to charge them $0 in taxes and then give them $10k?I agree it is not very efficient, however in this case efficiency must give away for fairness.
This is exactly how it works here. The problem is that this doesn't cover the millions of people who work off the books.Plus everything is done electronically these days so the administrative stuff is rather minimum. In Denmark companies and banks report what they pay in wages and via the tax paper that every employee has to provide the company, the company on behalf of the tax man, takes the require tax and pays it to the tax man. It is all done automatically.
How is "everyone contributing to society" more when it's the $8/12 example above as opposed to the $10/10 example? The end result is exactly the same.The whole idea, is that everyone, from the paper boy to the CEO pays income taxes in some way and hence contributes to society.