Is it ethically problematic to tax rich(er) people the same as poor(er) people?
- Thread starter Colonoscopy
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The wealth gap isn't because the guy making 55K pays 2k in taxes per year, the income gap is because the guy making 55k pays 15k per year in interest charges while the guy making 500k pays little or none.
A wealthy person goes to a car lot negotiates from a position of power and pays 18k cash for a 22k car... the low income earner with good not perfect credit pays 30k for the same car.
Before we "fix" the taxation issue, it would much more benefit the little guy to fix the interest issue. The poorer you are the more interest you pay while the wealthy pay little or no interest.
A wealthy person goes to a car lot negotiates from a position of power and pays 18k cash for a 22k car... the low income earner with good not perfect credit pays 30k for the same car.
Before we "fix" the taxation issue, it would much more benefit the little guy to fix the interest issue. The poorer you are the more interest you pay while the wealthy pay little or no interest.
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I’ve always found this belief interesting and wonder if it comes from how car buying was done in the 70’s/80’s or something. Most of the time you are NOT in a position of power when you go to a dealer and plan to pay cash. As a matter of fact, you’re better off not telling the F&I folks until after you’ve negotiated a price that you’re planning to pay cash. Even then it’s sometimes best to just take the incentives they’re offering and finance as long as there is no prepayment penalty.
There is an entire machine around having a longer term relationship with you beyond the initial transaction and goes exactly to your point - interest. When you shortcut that and say you’re paying cash, you actually diminish your bargaining position.
You're right on that front. But cars aren't the only thing people pay absurd amounts of interest on. Poor guy (makes a terrible decision) needs a bed. Doesn't want a new one, he NEEDS one... doesn't have 800 bucks so he uses in house financing or even worse goes to a rent to own place and pays it off over 12 months and ends up paying 1400 for their 800 dollar bed. The wealthy person got the exact same bed from Rooms To Go and paid almost half what the less wealthy person pays.. and they have the money to pay double.
This I don’t disagree with. I just always wonder why the car example is used.
Interest is an often necessary evil that the average consumer really doesn’t fully understand, can not assess the long term impacts of, and normally just takes it in the shorts without even batting an eye.
And to get back on topic, I’d argue you could change the word “Interest” to “Taxes” in the sentence above and it would be accurate as well. The average Joe is getting taxed and interested to hell.
Also, the wealthy person buys all their stuff on credit cards that offer cash back or other major incentives and pays it off every month... they get PAID to spend money. The poor guy racks up debt on a credit card and pays interest and once again pays double or more for the same items the rich guy buys.
The wealthy guy who travels often uses airline miles to take his family on vacation. The poor guy uses his credit card and his 1 week in orlando takes 5 years to pay off.
I have no idea how to fix these problems, but they are more legit to me than the tax burden on the average to below average income earner.
Have you factored in all the other taxes people pay and how THAT affects the overall tax burden or are we just stuck on income tax?
Making an exaggerated statement to the point of being false undercuts the point you are trying to make.
There is the problem. Poor guy is living the lifestyle of someone who makes more money, possibly to the point of rich guy.
Live within your means.
Most of the deficit has been incurred in the last 20 years and most of that new money printed has ended up in the pockets of a very few. How does it make sense for anything other than taxes following the money?
Inflation is a hidden tax that unfairly burdens the poor and middle class. That’s ethically problematic.
Property tax is nothing more than legalized extortion. If you don’t pay the county/city what you ‘owe’ them they take your property. That’s ethically problematic.
How did this country manage to grow and thrive until about 110 years ago without an income tax?
The government does nothing but Rob us blind. And that’s sorta ethically problematic.
Property tax is nothing more than legalized extortion. If you don’t pay the county/city what you ‘owe’ them they take your property. That’s ethically problematic.
How did this country manage to grow and thrive until about 110 years ago without an income tax?
The government does nothing but Rob us blind. And that’s sorta ethically problematic.
That sounds great in theory. Not every person is trying to live a lavish lifestyle.
OP misstated his question in the title.
I think taxing 1 person 10x or 100x more than someone else is unethical.
The principle underlying it is nothing more sophisticated than Willie Sutton.
I think taxing 1 person 10x or 100x more than someone else is unethical.
The principle underlying it is nothing more sophisticated than Willie Sutton.
OT: I wish ignore would block the laughing emoji as well. It's like trying to read something with a blabbering idiot drooling over your shoulder.
My MIL got roped into purchasing a timeshare about 25 years ago. They managed to pay it off early and have owned it forever. However, now that her husband has dementia and is in a nursing home and she's in an assisted living on a fixed income, she can no longer pay the maintenance fees. She's told them this and they just keep threatening her. She said to just take the darn thing, she doesn't want it and can't use it.
I told her that's not how it works, however I haven't had time to look up how to unload that thing. Fun times.
I'm sure my mom would be in a similar situation. She's owned her home for 20 years, and is on a fixed income. If she can't pay her property taxes they'll threaten to come take the house.
For a while I was hearing constant ads on the radio for an outfit that would help you get out of a timeshare. They pop up when you google.
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