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I can think of a few...it would likely cost as much to ensure the salaries were balanced. It takes away the opportunities of individuals to invest their money before they are required to pay taxes on them. You are creating a caste or class of people that would create unnecessary rifts. It removes the personal investment we ALL have to ensure our tax dollars are collected and spent wisely (if I dont have to pay taxes but still get federal services and benefits, what do I care about how it is spent?).
It would probably cost us less. The IRS has to employ people to do those taxes. Also, someone has to do their tax withholdings.
Investment opportunities - that's something right there. OK that's one reason I'll give you.
The caste system argument is BS. What are you talking about?