Quote:
Originally Posted by Ramrod
Might not take money out of the budget. A flat rate of say 10% across the board would probably decrease tax dodging, encourage wealth creation and hence increase spending (and profits), stimulate overseas investment (due to the low tax rate) and create jobs (which would then be taxed.
.................or we can simply continue to disincentivize the creation of wealth & jobs in this country  |
I don't think it's disincentivizing. If people would really lose motivation to earn more simply because more would be taken proportionally then they need to examine their priorities. They would still get more money, it's not as it the moment you cross the threshold the new tax rate applies to your entire income.
Even so, that's not the intention behind taxing wealthy people more. You need taxes to operate the society and all the benefits that come with it, and they are the best placed to provide it. Companies employ people who are educated by the state, protected by the state, and looked after by the state and there is a cost involved in that. If any of us suddenly found ourselves unable to work due to heath reasons then in comes the state to look after you, if you find yourself out of work, there is the state.
Taxes are the price we pay and people can go to countries like the US where you pay less tax, pay for health insurance, and as long as you don't lose your job and the health insurance company doesn't screw you over then you don't have to worry if that heart operation you need will bankrupt you family or not. There is a cost involved in not paying as much tax as well.
The government is lowering corporation tax, fair enough, more people employed means more income tax. However I think income tax should largely remain the same. Tax breaks should be given to use who have the most need.