Post Reply to Political

This is not a vent board or any other kind of therapy. Before you hit the POST button, ask yourself if your contribution will add to the level of discussion going on.

Important notes on articles:

Handle:
Password:
Subject:

Message:

HTTP Link (optional):

Poster's Email (optional):

 


Post being replied to

Well by ufl

I guess there are two issues: (a) the definition of progressive/regressive and (b) the justification for progressive taxes.

If the taxes paid by an income group as a percentage of that income rises with the level of income the tax is progressive. If this falls as income rises the tax is regressive. Of course the categorization depends on a calculation of who actually pays a tax and economists have their own way of doing this.

The justification for progressive taxes is not usually based on fairness. Economists find this to be a slippery concept. The argument is utilitarian: Progressive taxes produce less pain for a given amount of revenue raised. The idea is that the reduction of utility (pain) caused by depriving someone whose income is $200,000 of $50,000 worth of consumption is less than the reduction of utility caused by depriving someone whose income is $40,000 of $5,000 worth of consumption.