Is this a better way for us to tax the rich?
More specifically, what I really mean, is: Wouldn't it just be better to have a uniform income tax for everybody.
It always amazed me how the lower class seem to justify 50% tax rates on top earners because "nobody needs that much money"...
Well nobody NEEDS more than beans on toast for breakfast. Nobody NEEDS wifi at home - go and grab a glass of water in a cafe or go to your local library...
Considering anybody on benefits in the UK has more than they NEED compared to a poor family in India, China or the entire continent of Africa, I've always found that rather hypocritical.
I'm all for a fair society, don't get me wrong. And you know what fair would be?
It would be everybody being taxed at the SAME rate!
Something like a flat tax rate of 20% on all income.
Some of the benefits would be
Incentives to make money would be equal for all. High earners would earn the same per extra pound / dollar than poorer people - high earners wouldn't be penalised.
The costs for HMRC / the IRS would go down dramatically - since there would be practically nothing to calculate. It would essentially become just an anti money laundering organisation.
The poorest in the nation could easily be awarded scaled benefits from the government, based on their personal circumstances, which would counteract any tax paid by the people in most need of the money.
Raw simplicity of the system - no time wasted trying to understand or game the system.
Our tax laws are based on many assumptions... The assumption that you only NEED a certain amount of money. The assumption that it's only fair for everybody to work every year till they're 65... The fact that we're taxed based on annual income (not lifetime income) is completely arbitrary.
We need to get this Robin Hood crap out of our system. Yes we want to redistribute wealth, but people who make good money are not ALWAYS evil.
Lastly, just remember that if we all had the same tax rate, the high earners WOULD STILL BE PAYING A LOT MORE TAX than the lower earners!!
What's your verdict?