What should be remembered is in order to create a truly “equal” system in which everyone paid the same amount would mean a radical increase in taxes on the rich. I’ll repeat that in a different way, currently the rich pay less in taxes then their middle class counter parts. As is we currently have several consumption taxes: tolls as we stated are one, sales tax is another, Social Security a third, then there are taxes on gas and so on. When you take these into consideration of total tax burden the middle and lower classes pay substantially more in terms of percentage of taxation then the wealthy. But I’ve heard that the rich pay 50% of all taxes collected? Yes in terms of taxes collected on income alone the wealthy 10% make up a lion share of revenue, this however is only 1/5th of taxes. When you add in all the consumption taxes that go to the government the percentage the working class pay is significantly higher than the wealthy, and has been increasing for the last 30 years.
The big problem with consumption taxes is they often fail to capture all who benefit from the consumption. To go back to the example of the toll roads, here in New York, our major tolls are on our bridges. The people using these bridges often complain that their toll expense goes to fund the Buses and Subways. Many people feel this is unfair, and want to put the funding of the mass transit system solely on those who use it. What people fail to realize is that having a convenient cost effective form of mass transit decreases the amount of cars on the road. Less people driving means cleaner better maintained roads, it also means shorter commute times for those who still choose to use the tolls regardless of the fee.
Lastly there is the moral question of a flat tax system. America is the land of liberty and freedom. The plaque within the statue of liberty proclaims:
"Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!"
It is a reminder that many of us, including the rich in this country came here with nothing. We are a nation of immigrants looking for a fresh start. We believe that we can find value in what other nations view as wretched. A flat tax system would put a greater burden on the least of us, those most looking to make a fresh start, and find opportunity in the land of the free. Do we want to say to those just struggling to survive, that you can make it here as long as you can afford it. I know this sounds ultra idealistic, but isn’t that what all morals are?
1 comment:
Love the examples!
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