A Question Of Tax Fairness

[Solitaire]

I know it's Chirstmass when my 1040 arrives.
Alas, now a certain sourness has arrived in this article: Tax Fairness? (http://www.businessweek.com/bwdaily/dnflash/jan2004/nf20040113_3831_db028.htm)

P.S. I'm a bit worried that Shanek will bring up his old tried and true
arguement that if you give goverment a little power they will abuse it. :p
The Great Tax Ripoff (http://www.businessweek.com/magazine/content/04_03/b3866030_mz005.htm)

[phildonnia]

A few subtle points about the perceived unfairness of the income tax:

First, is the difference between $ and %.
The rich generally pay much more $ in taxes, and much less % in taxes. So everyone uses whatever statistic best suits their own political leanings, and they're both basically right; but in the end, it's the $ you use to buy milk and not %.

Second, there is a difference between income and wealth. If Bill Gates loses 100 billion on the stock market, and donates his yearly salary to charity, he's still the richest guy in the solar system, and pays no tax.

Third, income tax on corporations is a tax taken from corporate profits _in addition to_ the tax that the shareholders will pay on their dividends. So the same "income" gets taxed extra. The extra amount is less than what normal joes pay for their entire tax.

So the statistics can all be used to make whatever argument you want:

Argument A: The rich pay much lower % of taxes, some people with buttloads of money pay no taxes, and corporations pay profoundly less taxes.

Argument B: The rich pay much more money in taxes, people who don't make money don't pay, and corporate profits are taxed twice.

[The Don]

Tax comes from one of three sources:

- Tax on income
- Tax on consumption
- Tax on assets

Whichever thing I am promoting/discrediting I can come up with some kind of stereotype to support my case:

Pro asset tax:
What about the plutocrats with the big homes that hardly pay any tax because they hide their incomes - I think taxing assets is fair

Anti asset tax:
What about the poor old granny alone in her big house. All her money goes in just heating the place, she can't afford to pay asset tax. Would you make her sell her home ?

There is no popular way of raising tax money, usless of course it's from "other people"