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Inequality: Difference between revisions
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=== Tax rates === | === Tax rates === | ||
The majority of government taxes are based on income<ref>https://treasury.gov.au/review/tax-white-paper/at-a-glance#:~:text=The%20major%20sources%20of%20state,of%20local%20government%20tax%20revenue.</ref> not existing wealth. So someone like Jeff Bezos or Elon Musk might have a gajillion dollars in shares but as they havent been sold, there is no income and therefore no tax. However, putting this aside lets have a look at income taxes around the world. | The majority of government taxes are based on income<ref name=":0">https://treasury.gov.au/review/tax-white-paper/at-a-glance#:~:text=The%20major%20sources%20of%20state,of%20local%20government%20tax%20revenue.</ref> not existing wealth. So someone like Jeff Bezos or Elon Musk might have a gajillion dollars in shares but as they havent been sold, there is no income and therefore no tax. However, putting this aside lets have a look at income taxes around the world. | ||
Most income tax rates are progressive meaning someone earning <$10,000 should, quite rightly only pay a small percentage of their income to the government whereas someone in the next bracket say $40,000 should pay a slightly higher tax and someone above this would pay even higher. | Most income tax rates are progressive meaning someone earning <$10,000 should, quite rightly only pay a small percentage of their income to the government whereas someone in the next bracket say $40,000 should pay a slightly higher tax and someone above this would pay even higher. There are two major issues here: | ||
# Around the world the tax bracket levels of too early. The Laffer curve is often quoted here however modern analysis has found that the top of the curve should be 70%<ref name=":0" />. | |||
'''References''' | '''References''' | ||