Cliff, we are friends, but I don't speak lawyer. I am to understand that you believe that there should be a greater percentage paid by high wage earners because they had the opportunity to make the money in a civilized country? Doesn't the least wage earner have the same opportunities as everyone else to live, what I used to call "the American Dream"? Because everyone has the same opportunity to get paid for their own genious and hard work, this idea of charging a differnt rate irrelevant. By all of us paying such a large percentage of taxes, the government is taking this utility from the overall economy and spending it on entitlements. Our governor recently said that me, as a business man, will be charged more in taxes because the Washington government has created an atmosphere where I can be "successful". This is flawed reasoning as our state government has done nothing to create anything for me or my companies except for putting great road blocks in out way of success. I'm afraid that without the huge amount of taxes that we pay, our state government wouldn't exist. On a larger scale, this is the same situation at the Federal level. The idea that people are successful because of anything other than an individuals own efforts is arrogant.
BTW, I am still waiting for my parts from Ian and company.
Jim, I still would like to hear your take on what is fair.
Tom,
Yes, absolutely, I personally believe the tax rate structure should be HIGHLY progressive. Some reasoning behind this:
1. Those with wealth always enjoy a disproportionate influence and control over government and the important decisions which govern everyone. A progressive tax rate structure helps to discourage the unlimited concentration of power (through the exercise of wealth and influence), which I think we can all agree is something to be avoided.
2. If you're already "ultra-wealthy" do you really need another million (or billion)? No. If you don't have any shoes nor a place to sleep, do you need a few thousand bucks? Yeah.
3. The ultra-wealthy disproportionately benefit from the opportunities created by a civilized society governed by laws and ethics. They should at least pay an equivalent tax burden (ie. a flat tax for all), and I would say a progressive tax burden, but the fact of the matter is they don't. The effective tax rates of Mitt R and Warren Buffet are just two very typical examples of the ultra-wealthy - their effective rate is less than most middle income tax payers. The stats are there, and thems the facts.
4. The ultra-wealthy have the resources to hire people to be slippery about paying taxes....most low/middle income taxpayers can't afford such maneuvers and thus the ultra-wealthy should have a progressively higher rate.
5. A highly progressive tax structure doesn't mean that people are somehow discouraged to excel or suffer a somber mood towards their potential lot in life (think 1950's USSR....), one of the countries with the highest per capita income is Norway. Norway has hugely progressive tax rates. And, incidentally, Norway comes out consistently on top as the "happiest" country in the world. People get along there, and it's a civilized and decent place to live.
And while you may think that Washington State (or the Federal Government) hasn't done much to allow you to benefit from a business climate that fosters opportunity and healthy business , go try to run a business in Mexico or North Korea or Afghanistan. The State and Fed governments (and the local) are what makes the difference, along with a populace that generally believes in the idea of governance generally, of course. I do understand what you're saying however.....the State and Feds are horribly inefficient with our hard earned tax dollars...
As a guy who has paid seven figures in personal income tax in a couple different years I would have loved to pay less....but that just wouldn't have been fair in my mind. I used to be involved in tax planning as a tax attorney when I was much younger so I have lots of first hand experience with how the ultra-wealthy manage to keep their money in their hands while plenty of others don't have shoes or health care or a place to bed down for the night. It's just plain uncivilized.
As friends speaking plainly, I have to disagree about everyone having an equal opportunity to make it....that's completely false. Many people are brought into the world with wealth, privilege, much better parenting than others, natural abilities that far exceed the average, etc. It's completely an uneven playing field. And for those who got the short end of the stick it's reasonable that they're given a helping hand by those who had an advantage. It's one of the things that helps to keep us all civilized as a group.
That's just my $.02.
ps. crap, I was really hoping Ian/CAV/RCR would have manned up and done something to resolve it.
