Originally posted by: wavshrdr
Here is what I don't understand about our current tax model, why is it the more you make, the greater percentage they take? If applied this logic to something perhaps such the Olympics, the faster the runner ran the 100m sprint, the more weight I would toss around his neck. Does this seem fair and equitable?
Furthermore why should I be penalized because I delayed my gratification by going to school, working my a$$ building my business, putting my own personal savings at risk to build said business and when I am finally successful, then penalized for my success? I assumed ALL the risk. The government then redistibutes my hard work to everyone else.
I tend to agree with you and in fact I would claim that I even support a capitalist-leaning mixed economy.
However, I do think you should contemplate whether or not we have a true meritocracy and whether luck and the avoidance of bad luck might have played a role in your success.
What about all of the people with education and advanced degrees, including useful professional degrees, who have above average ability and who are very hard workers, but who are just poor interviewers (poor innate ability to get people to like them in the first three minutes or who weren't members of the good looks lucky sperm club) and cannot find jobs in their fields? What about those who were unfortunate to graduate into an economic recession and ended up unemployed or underemployed-out-of-field and then lose the entire value of their degrees since they then suffer employment discrimination (for having gone unemployed for a while or for having been underemployed-out-of-field)?
I mean, let's suppose that someone had a law degree and that he were a graduate of a top twenty law school but that he were just a poor interviewer for some reason and had bad looks. In reality, if hired, he would produce spectacular work product, would get along well with people, and would work long hours, but he just doesn't have that used car salesmanship ability to get people to like him in the first three minutes of an interview and graduated during the pit of the recession and end up underemployed-out-of-field.
Suppose that guy would gladly be willing to do the very same work as someone getting paid $130,000/year for the bargain price of $75,000/year. Does the guy getting $130,000/year necessarily have a moral claim to the value over $75,000 when someone else would happilly produce the same work for $75,000? Might we say that he's overpaid and that the superficiality of hiring entities who discriminate against the other guy is responsible for paying him that excess $55,000/year? Also, could luck and the avoidance of bad luck have been a factor? I mean, could it be mere luck that the guy graduated during an economic boom and was able to land the $130,000/year job and not suffer employment discrimination for having gone unemployed or being underemployed-out-of-field?
When you look at it that way--when you consider that, objectively, a great many people would happily do much of the same work just as well or better for less money than people who currently have a great many high paying jobs, you have to wonder whether they really should be entitled to keep all of the money they received in compensation merely because they were lucky enough to get established and had good first three minute interviewing skills.
For those reasons, I really don't have a problem with progressive taxation because I know that our current economy is far from being a meritocracy and that luck and the avoidance of bad luck play large roles in financial success. Sadly, effort, ability, and work ethic are mere necessary but not sufficient conditions--you can take moral actions and still suffer.
Of course, I would hope that we can achieve an economy so healthy that people don't suffer employment discrimination for superficial reasons and that everyone can work and produce to the best of their ability, at which time reducing the degree of progressive taxation might be justified.
My message -- yes -- much of your success was based on your own hard work and effort and you are morally entitled to benefit from it, but at the same time luck (such as having a personality that developed in childhood to allow you to be a great natural interviewer) and the avoidance of bad luck also play a large role and a great many people are not so fortunate. So don't be so indignant over the higher tax rates--a huge number of people of tremendous productive ability would love to have your job and would gladly pay those high tax rates in exchange. If you are a member of the upper middle class, you have no idea just how lucky you are and just how many people with excellent ability and work ethic are relegated to the middle class and lower middle class, especially in an economy that has failed to generate new middle class jobs for years.