As someone pointed out to make the rich work more they get paid more but to make the poor work more you pay them less
some of the points i have made have been ignored. first of all if you reduce taxes for the poor they will spend more money than if you reduce taxes for the rich due to having to spend a higher percentage of their income. thus is a taxation reduction is given which it needs to be to compensate for the reduction of demand from credit limitations then this is most efficient way. in my country people who work pay tax then receive money back to reduce the time the money is out of the economy i.e. when the tax is taken to when the payment is given they should not tax them in the first place. this would increase velocity and demand. any thoughts on those principles would be welcomed. thank you for your responses so far.
Am I the only one who thinks that taxes are a gigantic load of bullshit? Look at what politicians do with our money, they use it in the form of expenses. They pour it into military spending and administration ( a.k.a them ) all they do with the money they steal from us is use it for their own personal use instead of keeping their campaign promises. If they really needed taxes so high we'd have state of the art medical healthcare and public services that didn't revolve around not trusting the very people who sodding pay for them. Governments should always have low tax rates so that they are forced to not only spend more wisely and only on the essentials but also so that people don't have to suffer through the crap of horribly poor and incompetent decision making.
it increases aggregate demand without getting into debt. which is worse people paying tax then getting it back or huge debt. i am in favour of the tax reduction myself. no future repayment.
OK so as not to ignore your goodself any longer consider these points. If you don't tax the poor then:- 1. Someone else has to pay more for Army, politicians etc. 2. If the poor suddenly have extra money in their pockets, are they going to pay off the mortgage ? Ok a few will, but mostly they will get stoned on drink and drugs, which is funding their local criminals who are probably quite rich enough as it is and then take time off work to semi recover. 3. Invest the country's wealth where it will do some good. Mostly the poor are a bad investment as they just consume and crap/piss it all away.
how about getting rid of the tax code and starting all over? unfortunately thieving politicians don't want u to know what they are are doing.
In America, people at the low end of the wage or income scale pay NO federal or state income taxes. Every income earner pays payroll taxes (SS & Med.) Actually, lower end wage earners are net positive, after receiving their Earned Income Credit check, which is money credited to them for income taxes they NEVER even payed. So really its a welfare check. The very best idea out there for changing our tax code is the FairTax. Imo, nothing else even comes close. One way to reduce taxes on the poor is to inact the FairTax. It would take away payroll taxes and they would have zero tax liability. You'd think Democrats would love the FairTax, but noooo, it takes away to much power and control. FairTax.org
Good post. Reducing tax on "the poor" does little or nothing. It also creates even more disincentives to work hard and get a raise, start a business, etc. since you'll move up to a higher tax bracket in addition to losing many benefits.