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Old 08-28-2019, 04:21 PM
bump is offline
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Join Date: Jun 2000
Location: Dallas, TX
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Quote:
Originally Posted by Budget Player Cadet View Post
Okay, so why is "overall percentage of income paid as tax" the meaningful figure of comparison here? Why is that a better number to focus on than what Moriarty is focusing on (total percentage by tax bracket) or what certain dishonest hacks would prefer we focus on (total amount in dollars) or what I would prefer we focus on (total percentage by marginal utility of each dollar)? Beyond the obvious fact that my preferred solution is completely unworkable in practice, anyways.
I'm just pointing out that his statement "Each person pays the same percentage of their income in taxes, but not the same amount." is flat out wrong.

Someone making 100k doesn't pay the same overall percentage- if they did, it would be a flat tax. But the brackets apply equally- I pay the same tax (10%) on my first 9700 dollars of taxable income that Lebron James does, as well as the guy making sandwiches at the Subway across the street. But none of us pay the SAME percentage overall in taxes- Lebron probably pays somewhere fairly close to 37%, I pay somewhere in the 15-18% overall amount, and the guy at Subway probably pays somewhere between 10% and 12% overall.