Why should the rich pay more taxes simply because they have more money?
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Why should the rich pay more taxes simply because they have more money?I can't quite understand the mentality of people that say the rich should pay more in taxes simply because they have more money; after all, nobody seems to apply this methodology to other situations.
If I go into a restaurant and have £100 in my wallet, and someone on another table has £50, I don't pay twice as much for my lunch.
Why should it be any different for taxes?
One of the reasons I came across was the idea that 'the rich benefit more from government spending', though I find this difficult to accept. In particular, one argument was based on defence; the proposition is that the rich should pay more towards defence because 'they have more to defend'; but isn't defense non-rival? The fact that person A has 3 houses to defend doesn't mean person B with 1 house is any less defended. We don't get our own personal soldiers pegged to our level of possessions - we have a national defence force that defends everybody equally, regardless of possessions.
So, can anyone please convince that the rich should pay more taxes than the poor simply because they have more money? It doesn't seem very fair to me. -
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Re: Why should the rich pay more taxes simply because they have more money?If life was fair there would be no 'rich' and 'poor'(Original post by Aspiringlawstudent)
It doesn't seem very fair to me. -
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Re: Why should the rich pay more taxes simply because they have more money?Why not?(Original post by unclej)
If life was fair there would be no 'rich' and 'poor'
When people have different levels of ability, talent, motivation and skill, why shouldn't there be differences in how much they earn?
If I employ two people and one will make £10 an hour profit for the company and one will make £5 an hour profit for the company, why on earth would I pay them the same wage?
That's completely insane. -
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Re: Why should the rich pay more taxes simply because they have more money?(Original post by Aspiringlawstudent)
I can't quite understand the mentality of people that say the rich should pay more in taxes simply because they have more money; after all, nobody seems to apply this methodology to other situations.
If I go into a restaurant and have £100 in my wallet, and someone on another table has £50, I don't pay twice as much for my lunch.
Why should it be any different for taxes?
One of the reasons I came across was the idea that 'the rich benefit more from government spending', though I find this difficult to accept. In particular, one argument was based on defence; the proposition is that the rich should pay more towards defence because 'they have more to defend'; but isn't defense non-rival? The fact that person A has 3 houses to defend doesn't mean person B with 1 house is any less defended. We don't get our own personal soldiers pegged to our level of possessions - we have a national defence force that defends everybody equally, regardless of possessions.
So, can anyone please convince that the rich should pay more taxes than the poor simply because they have more money? It doesn't seem very fair to me.
Just a quick question, do you mean that people should pay the same percentage as tax, or they should pay the same fixed amount? -
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Re: Why should the rich pay more taxes simply because they have more money?More like when people have different levels of opportunity, support, wealth, education and social mobility. why should this provide you with a higher wage then someone less fortunate.(Original post by Aspiringlawstudent)
Why not?
When people have different levels of ability, talent, motivation and skill, why shouldn't there be differences in how much they earn?
If I employ two people and one will make £10 an hour profit for the company and one will make £5 an hour profit for the company, why on earth would I pay them the same wage?
That's completely insane.
What's completely insane is that a cleaner gets less pay then a boss that does less work and does not have the same financial needs to support a family and such. -
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Re: Why should the rich pay more taxes simply because they have more money?Wages aren't anything to do with how much you have to spend to keep yourself and your family supported - they're everything to do with how much you produce for your organisation and how easily replaceable you are.(Original post by unclej)
More like when people have different levels of opportunity, support, wealth, education and social mobility. why should this provide you with a higher wage then someone less fortunate.
What's completely insane is that a cleaner gets less pay then a boss that does less work and does not have the same financial needs to support a family and such.
Cleaners are a dime a dozen. Exceptional CEOs aren't. -
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Re: Why should the rich pay more taxes simply because they have more money?I don't think income tax should exist at all. I think there should be a flat tax on consumption in order to fund defence and the administration of justice - I don't think the state has any business doing anything else at all.(Original post by NewFolder)
Just a quick question, do you mean that people should pay the same percentage as tax, or they should pay the same fixed amount? -
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Re: Why should the rich pay more taxes simply because they have more money?I know wages have nothing to do with need. That's what's unfair.(Original post by Aspiringlawstudent)
Wages aren't anything to do with how much you have to spend to keep yourself and your family supported - they're everything to do with how much you produce for your organisation and how easily replaceable you are.
Cleaners are a dime a dozen. Exceptional CEOs aren't.
It's unfair that a single mum works minimum wage as a cleaner and struggles to provide for her family while her business owner does no work accept deciding his bonus and spends his money on golf and ski trips.
That's whats unfair not the fact that boss's have to pay more tax. -
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Re: Why should the rich pay more taxes simply because they have more money?Why is that unfair, though?(Original post by unclej)
I know wages have nothing to do with need. That's what's unfair.
It's unfair that a single mum works minimum wage as a cleaner and struggles to provide for her family while her business owner does no work accept deciding his bonus and spends his money on golf and ski trips.
That's whats unfair not the fact that boss's have to pay more tax.
Doesn't it make perfect sense that if one person makes more money for the company, they should be paid more than someone that makes a lot less?
If not, what incentive is there for the person that makes a lot for the company to do anything when he could do very little and be paid the same amount? -
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Re: Why should the rich pay more taxes simply because they have more money?It depends how much money I need to borrow and which of them would give me more favourable terms. However, much more importantly, it depends on which one (if either) WANTS to lend me the money. If neither of them want to, I need to go elsewhere.(Original post by jameslad)
Okay.
Say you need to borrow some money.
You knew two people. Person A and person B.
Person A is much more wealthier than person B.
Who would you borrow the money from?
and why?
The problem with taxes (and the reason your analogy doesn't make any sense) is that they are not voluntary, like money lending. If you go to a bank and ask for a loan, they're not obliged to give you one. However, if you go and sign on at the jobcentre for your £60 a week or whatever it is, someone in the country has to pay for that without any choice in the matter - and I do not think that's fair.
By the way, 'more wealthier' isn't very good grammar. You mean 'more wealthy' or just 'wealthier'.Last edited by Aspiringlawstudent; 01-08-2012 at 03:41. -
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Re: Why should the rich pay more taxes simply because they have more money?Completely agree with you OP, Everyone gets one vote, so everyone should pay the same amount of tax.(Original post by Aspiringlawstudent)
I can't quite understand the mentality of people that say the rich should pay more in taxes simply because they have more money; after all, nobody seems to apply this methodology to other situations.
If I go into a restaurant and have £100 in my wallet, and someone on another table has £50, I don't pay twice as much for my lunch.
Why should it be any different for taxes?
One of the reasons I came across was the idea that 'the rich benefit more from government spending', though I find this difficult to accept. In particular, one argument was based on defence; the proposition is that the rich should pay more towards defence because 'they have more to defend'; but isn't defense non-rival? The fact that person A has 3 houses to defend doesn't mean person B with 1 house is any less defended. We don't get our own personal soldiers pegged to our level of possessions - we have a national defence force that defends everybody equally, regardless of possessions.
So, can anyone please convince that the rich should pay more taxes than the poor simply because they have more money? It doesn't seem very fair to me.
The rich tend to benefit less from government spending, NHS isn't utilised as they go on private healthcare, State schools aren't utilised...etc. etc.
Not just that, the rich would get taxed more anyway because they will get taxed on their spending 20%, saving 50%, investment earnings 50%, inheritance 50% this country treats it's rich and business elite like a joke, its no wonder everyone is going elsewhere
And I completely agree with you that it is unfair to the rich, I went to the same school as people far far less privileged then me, I did better than them because I wasn't stupid and didn't throw the opportunity away, it was nothing to do with social mobility or wealth....
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Re: Why should the rich pay more taxes simply because they have more money?Taxes on consumption are regressive. I.e. a poor person feels the pinch on their pockets more than a rich person - They spend more as a proportion of their disposable income, incurring higher indirect taxes, while the rich save more. If you do indeed believe everyone should pay 'equal' taxes, you should support a flat tax on incomes.(Original post by Aspiringlawstudent)
I don't think income tax should exist at all. I think there should be a flat tax on consumption in order to fund defence and the administration of justice - I don't think the state has any business doing anything else at all.
I'm just giving the other prespective - I don't have any particular view on this, and won't make one until I've at least finished my degree. -
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Re: Why should the rich pay more taxes simply because they have more money?Perhaps she should of thought of that, BEFORE SHE HAD KIDS. The business owner worked extremely hard to get to his position and can now enjoy the benefits.(Original post by unclej)
I know wages have nothing to do with need. That's what's unfair.
It's unfair that a single mum works minimum wage as a cleaner and struggles to provide for her family while her business owner does no work accept deciding his bonus and spends his money on golf and ski trips.
That's whats unfair not the fact that boss's have to pay more tax.
The opportunity is there for EVERYONE, if you don't see it, you don't deserve it. -
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Re: Why should the rich pay more taxes simply because they have more money?(Original post by perrytheplatypus)
Taxes on consumption are regressive. I.e. a poor person feels the pinch on their pockets more than a rich person - They spend more as a proportion of their disposable income, incurring higher indirect taxes, while the rich save more. If you do indeed believe everyone should pay 'equal' taxes, you should support a flat tax on incomes.
I'm just giving the other prespective - I don't have any particular view on this, and won't make one until I've at least finished my degree.
But a tax related to your income cannot ever be truly 'flat' unless it's a simple amount you pay - i.e. everyone pays £5,000, which nobody seems to like the sound of.
If you're paying 20% of £100,000, you're paying a hell of a lot more than someone that's paying 20% of £25,000 - but you're not getting any greater degree of benefit.
When the tax levied is on consumption, you ARE getting a greater benefit in line with paying more tax because you get to enjoy and consume goods and services more. -
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Re: Why should the rich pay more taxes simply because they have more money?Even if one accepts that as true, it doesn't have any bearing on whether the rich have a duty to support the rest of the nation through taxes, or if they should pay disproportionately more than other people while deriving no additional benefit.(Original post by jumpingjesusholycow)
The existence of the rich is dependent on the existence of the poor.
