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Saturday, June 6, 2009

Fair Tax In California?

California has been a case study of the destructive power of liberalism. Now it could be a shining example of how to destroy it. Governor Arnold wants some drastic proposals. He could get one as "drastic" as a flat tax.

This is how far America has fallen: a proposal that everyone be taxed the same is considered "radical." In our faulty view of 'fairness', it's not fair in the eyes of liberals that poor people should be taxed at the same rate as rich people.

What liberals fail to recognize is that the rich are going to pay more taxes, even if they are taxed at the same rate because they have more money, and the percentage of their income shoveled out is going to be higher than the same percentage on a lower income (Question for self: Am I really sitting here having to explain this? Yes, I am.)

Here's an example, for those who need it: Filthy Rich Man makes $1,000,000 per year. He is taxed at 15%. So he pays $150,000 in taxes. Dirt Poor Man makes $50,000 per year. He is also taxes at 15%, paying $7,500 in taxes. Here's a fancy graph to compare these side-by-side.


Person
Income
Tax Bill (15%)
Filthy Rich Man
$1,000,000
$150,000
Dirt Poor Man
$50,000
$7,500

For those of you concerned about the fact that poor people are going to be disproportionately burdened by taxes because they are taxed the same, remember that we are talking about a tax rate not a flat dollar amount. In this example, at the same tax rate, the Filthy Rich Man paid 20 times more tax than the poor man.

Do the rich need to carry the greater tax burden? That's debatable, but for the sake of argument, I'll say yes. Do the rich, therefore, need to be taxed at a higher percentage of income? No, the rich will carry the greater tax burden at the same percentage level, because they're rich and they make more money.

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