High income earners don't take more from society, they give more to society. They earn more because they produce more. They sacrificed and risked more, and if they're successful they earn more. But they take only the same as everyone else. I just stated, I agree with progressive tax, but you have to leave some incentive on the table.michty6 wrote: ↑May 6th, 2014 10:54 amYeh most of your flawed logic here is why people think the system is not 'fair'. Progressive tax is based on the principle that the people who gain the most from society (take the most out of it - which we measure in $) pay more of it back in. If everybody earned the same (took the same benefits from society) then everybody paying equally (either direct $ or % as in your examples) would be fair. Of course, this is not the case. The lower earners (in your example) are not getting a good deal because the amount of value they are extracting from society is considerably less (even post tax).
If the amount you earned directly correlated to how hard you worked and how much you contributed to society then your system would be 'fair'. Of course, this is also not the case. Some people take out way more than they contribute to society - without progressive tax we would not be recovering this money and our entire society would be worse off. This is because there is a conflict of interest between capitalism and society - often what is best for capitalism (makes a lot of $$$) is not best for society. Progressive taxation (as well as Government regulation) is how we offset this conflict of interest.
Furthermore, quite often people can't contribute on an equal pegging just down to sheer bad luck, the roll of the dice in the game of life. As a progressive, western society we have decided that we still value these people and that people who didn't have such bad luck/started on a higher footing and reap a greater share of the benefits of society should contribute more to society for their rolling a 6 in the game of life.
Finally, as I mentioned, I've got bad news for you. There are very few places in the world (pretty much none) that have the standard of living that we do in Canada that don't have a progressive tax system. This is because of everything I just mentioned. Progressive taxation creates better societies for EVERYONE. Wealthy and non-wealthy. And yes, even in the golden land of Alberta you will be paying progressive tax on your income. Maybe not as much as Ontario due to the resource rich area (for the time being) but you will still be paying progressive income tax.
I know dozens of people who have left to the UAE. Anecdotal yes, but they didn't go there for the sun and sand. They are going where they can earn the same amount of money and pay little to no tax. These are some of your most productive people. Of course we can't compete with those resources, put this is the example in the extreme.
I'm arguing a point that doesn't even affect me today. But I aspire to be upper middle class, so I'd like to have my efforts rewarded.