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Providian Financial Corp (PVN) Message Board

  • psych79431 psych79431 Aug 17, 2004 2:37 PM Flag

    Facts--Your progressive tax -Don't work

    READ ON:
    4. Is progressive taxation based upon
    misconceptions as to the reality of the
    incidence of the tax burden?
    Whatever the political intent, constructive or punitive, it
    would appear that the effect of the high marginal progressive
    rates of taxation on both human and intellectual capital is not
    as intended. The evidence strongly suggests that the real income effects of high marginal taxation of financial and intellectual
    capital have resulted in lower real after-tax income for all Americans, and that more proportionate taxation should be
    adopted to promote economic efficiency´┐Żwith equity of income distribution left to the impartial judgment of the markets.
    for Public INNOVATION)

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    • Conclusions for Public Policy
      Given that increasing the share of taxes paid by the wealthy does not increase the after-tax income of the remainder of the people, then serious reexamination of public policy is necessary.We are paying a high price for high marginal tax rates that limit domestic capital formation and income growth.Where are the offsetting benefits? What are the real costs incurred by punishing the productive and subsidizing the unproductive?
      What unwholesome behavioral and demographic
      trends are being promoted? Is the cruelest consequence an increasing tax wedge on financial and intellectual wealth whose
      cost is primarily borne by workers and consumers through lost jobs, lower incomes, and higher prices?
      The fact that the hollowed institution of progressive taxation has not redistributed income cannot be ignored. The federal
      collection of progressive income taxes has corrupted definitions of the law and equity, and few will question that to a greater or lesser degree it is economically inefficient. It would seem that if it worsens rather than decreases disparity of income distribution, then only one realistic conclusion could
      follow: Progressive taxation for income redistribution has achieved the opposite of its objectives of helping persons of
      lesser means.