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Inequality: Difference between revisions
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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: | 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" />. | # '''Around the world the tax bracket levels of too early'''. The [[Laffer curve]] is often quoted here as higher tax can be a disincentive to work, there is some merit in this however modern analysis has found that the top of the curve should be 70% not 40% which is seen around the world<ref name=":0" />. | ||
#'''Tax havens'''<ref>https://www.cbc.ca/news/offshore-tax-haven-leaks-panama-pandora-paradise-papers-1.6205447</ref>. As a wide range of leaks have revealed, even with a lower tax rate many individual entities move abroad to tax havens. | |||
'''References''' | '''References''' | ||