Originally posted by: tss4
"Also, I'm not sure why you said "why would we take it form them" and "we would be doing is hurting them for no gain". We aren't taking anything from them as the poor don't pay income taxes so I don't know where you think there is some "hurt". "
I was reffering to working poor which do pay taxes, People in the 20k to 30k range. check my posts a little earlier in this thread for their tax burden and my dsicussion on it
"The thing I'll take issue with is the claim of "logic" for a progressive tax-code. The only "logic" that it has is emotional. It doesn't base itself on something that can be measured. Why not a 60% income tax on the "rich" and nothing on the "poor" and assuming you think there is a "middle class" then put them at 10%. Why not that? What are the income levels for those? What is it based on? "
There is a very logical rational for it which I will attempt to explain to you now. I doubt I will convince you but at least we will better understand each other. In economics money has a given utility. That's the maount of value you place on it. Its a fundamental consept in economics that the more of it you have the less utility you place on the individual dollars. Therefore, If we have two people. Joe poor has $10. Joe Rich has $1000. Now if I take only 10% from each man. Clearly, Joe poor has $9 now and Joe rich has $900 now. Over the next month, joe poor will struggle to pay his bills to survive, that $1 he will surely miss and would have spent. Joe rich on the other hand has more than enough to live well, by thing for his amusement, and even save some for the future and to make money with. To exagerate to make sure you get the point, if I the government need to fight in a war for both Joe's an I need $400 to by my tanks, clearly I could take 39.6% of Joe riches money and 39.6% of Joe Poors, giving me the $400. Both will be upset I'm sure, Joe rich still has plenty for his basic needs, and the extras he likes to enjoy. Joe poor will have a tough time and he might not be around next tax season unfortunately.

The alternative, is for Joe rich to pay 39.9% or $399 and Jor poor to pay 10%. This also adds up to $400 but leaves Joe poor with most of his money and the additional loss of $3 by Joe Rich unlikely to even attract his notice. In the second option, we have changed the burden on Joo Rich by an insignificant amount and given Joe Poor a much better chance to feed and cloth himself. Now I'm not advocating such a riduculous desparity. I believe there is a balance, one in which , there is a balance between promoting capatilism and the healthy competition that results and also between progressivism which can make life FAR easier for one class and make their chance at succes much higher at a loss to the wealthy which is felt minimally. Now which side of this balance you think we're on is up for debate. But there is a logical, non emotional, reason for progressivism. This is why the rich can handle 30% tax brackets and yet still suceed, while the poor would be quite a bit skinnier if they suddenly lost 30% of their wages.
This whole affect is well studied in the academic realm and is quit interesting if you have the time.
Hope this is enlightening and we can see one another's views a little better now.