 #32 (permalink) Sun Mar 20, 2011 9:51 am Re: Will Obama have an impact on the ESL community? |
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| Prezbucky wrote: |
Jan, the first test will be our federal income taxes. Obama promised tax cuts to the middle class and that no household making $250,000 or less would see an increase.
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Obama wanted to replace the flat rate tax system with a more complex one.
In the flat rate tax system you pay "rate*income" in tax money. But if you're rich you still end up paying MORE money than if you were poor (because your income is bigger). How's that not punishing your success? In fact it does punish your success because the more successful you become the more you wind up paying your government!
What Obama proposed is that the tax rate would depend on the income, and instead the flat rate system we have something along the following lines:
tax=rate1*income^2 + rate2*income.
or
tax=(rate1*income + rate2)*income;
Although the rate steadily increases with the income, and it does punish success, so does the flat rate system, as I've already shown. Which tax system is more successful is still up for debate. Maybe Obama's system is better, because it takes into account many factors and adjust the rate accordingly. Maybe the government, and in the long run its people, are better off with Obama's innovative system. Maybe
Obama is the trailblazer in taxes that we've been looking for.
Why do you decry Obama's tax system and call Obama a socialist? Because he went ahead and thought up a complex system that he thinks will get America out of the woods?
Just some people are so used to the flat rate system, that they think that everybody pays the same taxes, and lose sight of the fact that the rich still pay MORE taxes than the poor and that the flat rate system still PUNISHES success.
Here's a system that does not punish success: everybody pays a FIXED amount of money: say $100 per year. The rich and the poor have to cough up $100 on tax day and everything is fair and square.
Here's a system that rewards success: the rich pay less taxes than the poor, your tax money is calculated thus:
tax = rate/income
Now, the more your income is the less you have to pay - how's that for rewarding success? Doesn't pay to be poor with this system in effect, because if you're unemployed (income=0) you must pay an infinite amount of money in taxes(rate/0=infinity). Hehe. I think it will spur the unemployed to look for a job.
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