Saturday, February 12, 2011
On taxation and income vs. wealth
If you favor a progressive income tax because you want to see the wealthy "pay their fair share," consider the following analogy: Wealth is the amount of water in a bathtub and income is the amount of water flowing into it. The wealthy have a full bathtub and the resources to make it look like there is less water going in than there really is. "Progressively" turning down everyone's faucet discourages achievement and only makes it harder for others to become wealthy, leaving them to bathe in an inch of water.
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