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PROGRESSIVE TAXATION - NOT JUST A THEORY
For the moment, and until we change radically income taxation making it more progressive, nothing will change. The rich will continue to get richer, and the rest of us "the 90Percenters" can go to hell. America's tax-law provides the incentive to make as much as possible, and by any means possible.
The answer is in implementing progressive tax-rate. How do we get that? First, by wanting them - a volition that the US government has never ever demonstrated since the 1930s. Then by implementing tax-progressiveness.
What does that look like?
Here is the best explanation: Progressive Tax - Measuring Progressivity - from which we see this infographic demonstrating a typical progressive income tax (actually that of Germany):
Click here to expand the infographic - the black line above is the Marginal Tax Rate and the Red Line the Average Tax Rate.
Excerpt:
Furthermore:
MY POINT?
"Where there's a will there's a way." In America, there is no great desire for more equitable progressive taxation amongst the population. Besides, the Replicants would do all "that money could buy" in order to make sure it never happens ....
For the moment, and until we change radically income taxation making it more progressive, nothing will change. The rich will continue to get richer, and the rest of us "the 90Percenters" can go to hell. America's tax-law provides the incentive to make as much as possible, and by any means possible.
The answer is in implementing progressive tax-rate. How do we get that? First, by wanting them - a volition that the US government has never ever demonstrated since the 1930s. Then by implementing tax-progressiveness.
What does that look like?
Here is the best explanation: Progressive Tax - Measuring Progressivity - from which we see this infographic demonstrating a typical progressive income tax (actually that of Germany):
Click here to expand the infographic - the black line above is the Marginal Tax Rate and the Red Line the Average Tax Rate.
Excerpt:
Marginal and effective tax rates
Main articles: Marginal tax rate and Effective tax rate
The rate of tax can be expressed in two different ways; the marginal rate expressed as the rate on each additional unit of income or expenditure (or last dollar spent) and the effective (average) rate expressed as the total tax paid divided by total income or expenditure. In most progressive tax systems, both rates will rise as the amount subject to taxation rises, though there may be ranges where the marginal rate will be constant. Usually, the average tax rate of a tax payer will be lower than the marginal tax rate. In a system with refundable tax credits, or income-tested welfare benefits, it is possible for marginal rates to fall as income rises, at lower levels of income.
Furthermore:
Progressive taxation has a direct effect on reducing income inequality. This is especially true if taxation is used to fund progressive government spending such as transfer payments and social safety nets. However, the effect may be muted if the higher rates cause increased tax evasion. When income inequality is low, aggregate demand will be relatively high, because more people who want ordinary consumer goods and services will be able to afford them, while the labor force will not be as relatively monopolized by the wealthy. High levels of income inequality can have negative effects on long-term economic growth, employment, and class conflict. Progressive taxation is often suggested as a way to mitigate the societal ills associated with higher income inequality.
MY POINT?
"Where there's a will there's a way." In America, there is no great desire for more equitable progressive taxation amongst the population. Besides, the Replicants would do all "that money could buy" in order to make sure it never happens ....