Tax is a bit of a sacred cow in most countries today. Not sure?
That's OK.
Here. Let me show you. I'm going to propose something that will probably shock you. It may even anger you. In fact -- you may want to start calling me names or worse once you read it.
If you have even a hint of such a reaction - then this IS a sacred cow for you.
Ready?
We should drop the current so-called "progressive" system of taxation in favor of a "regressive". Actually those names are as inaccurate as when they first started calling that beautiful oasis in the North Atlantic, Iceland to ward off other hungry explorers, greedy for conquest and gain. Then they called that nearly useless block of ice, Greenland.
See?
Same deal with "progressive" and "regressive".
The former sounds so, well, progressive. Modern and enlightened. And that is how it is passed off. Of course it refers to a system that progressively INcreases the tax rate or percentage the MORE one earns.
Punishing productivity.
Then we have regressive. Which - again - sounds backward, medieval & dark. In such a system, one's tax rate DEcreases the more she earns.
Ahhh.... And therein lies the rub.
The current system of so-called progressive taxation --- as we all know --- is designed to PUNISH those with higher and higher earnings.
At the risk of sounding patronizing, let me repeat for clarity. That means one is REWARDED for earning LESS. Rewarded for being LESS productive. And PUNISHED for producing more. For being more economically competent and diligent.
Hmmmm....
See the problem here?
Consider that in any system -- you get more of the behavior you reward.
In the home, schools, businesses, hospitals, government offices, prisons.... any place people gather and work together.
If you reward the behavior you DON'T want, you will get more of it.
Conversely, it is common knowledge that when the desired behaviors are acknowledged and rewarded institutions get what they want.
To illustrate this, let's as what would happen if we used the same logic for the law.
Generally speaking an offender will receive a LONGER sentence for Murder 1, than for Murder 2. And likewise, Murder 2 is more harshly treated than Murder 3.
Just a little refresher.
Murder One is planned and premeditated. Murder in cold blood so to speak. Murder Two could more accurately be called a crime of passion. And of course, Murder Three is basically killing by negligence.
What would our system of law and justice look like IF --- as with "progressive" taxes --- the law deal lightly with the most heinous behavior and harshly with trivial offenses?
To illustrate my point, indulge me.
What if we had a system that meted out the harshest punishment for Murder 3 and the lightest for Murder 1?
Insane - Right?
Unbelievable. Twisted.
Back to our question of taxation.
How is Punishing people for earning MORE money any different?
Are you angry yet?
Are you defending the current system?
Why?
Because you've never known anything else? Or because it really is the best?
All right. Let's just say for a moment it IS somehow the "right" thing to do.
That somehow punishing the most productive members of society is good.
But --- even if that be so --- by the simple law of human nature and psychology
won't we tend to get more of what we reward?
Won't the countries with the most "progressive" systems tend to get poorer and poorer?
And those jurisdictions with less "progressive" tax policies richer and richer?
If you're like me, you see that -- even though it might still feel a bit strange because
of the propaganda we've been force-fed our whole life -- a REGRESSIVE
tax makes a lot of sense.
Let's go one step further and imagine a regressive system for a moment:
In a regressive system of taxation, the bottom earners would pay the highest rate.
Let's say we split the population into 4 tiers.
The bottom 20 percentile
The middle 20 - 80 percentile and
The top, from 80 - 99
And then the top 1 percent.
Let's say the people earning the least pay 25% tax.
The middle pay 15%
Those from 80-99 percentile 5%.
And the top 1% pay NO tax at all.
Would YOU be motivated to earn more money?
So --- How did you do? Is Tax a Sacred Cow for YOU?
If you did, it's OK.
The important thing is to begin thinking...and questioning.
Being willing to examine things we've taken for granted up till now.
To slay sacred cows where ever we find
them.
Because we ALL have them. It's just human nature. We all have blind spots.
The mark of humanity, though, is to have fewer and fewer as one grows in years
and hopefully wisdom.
But just be forewarned. when you begin slaying your sacred cows,
I hope you'll be careful who you share your views with.
Because there are vast numbers of people ready to kill for their beliefs.
Beliefs which most have never examined or questioned.
We see many of those people on the TV and in the newspapers shouting that they are
part of the 99% and proud of it.
Well --- this may be the subject for another post, but I wouldn't never proudly
shout that I was part of the 99%.
I have too much respect for and understanding of the contribution the top 1% make to bad
mouth them.
Anyway - I vote for a regressive tax system that rewards the most productive, intelligent
diligent humans. Not one that progressively kills the golden goose...
How About You?
That's OK.
Here. Let me show you. I'm going to propose something that will probably shock you. It may even anger you. In fact -- you may want to start calling me names or worse once you read it.
If you have even a hint of such a reaction - then this IS a sacred cow for you.
Ready?
We should drop the current so-called "progressive" system of taxation in favor of a "regressive". Actually those names are as inaccurate as when they first started calling that beautiful oasis in the North Atlantic, Iceland to ward off other hungry explorers, greedy for conquest and gain. Then they called that nearly useless block of ice, Greenland.
See?
Same deal with "progressive" and "regressive".
The former sounds so, well, progressive. Modern and enlightened. And that is how it is passed off. Of course it refers to a system that progressively INcreases the tax rate or percentage the MORE one earns.
Punishing productivity.
Then we have regressive. Which - again - sounds backward, medieval & dark. In such a system, one's tax rate DEcreases the more she earns.
Ahhh.... And therein lies the rub.
The current system of so-called progressive taxation --- as we all know --- is designed to PUNISH those with higher and higher earnings.
At the risk of sounding patronizing, let me repeat for clarity. That means one is REWARDED for earning LESS. Rewarded for being LESS productive. And PUNISHED for producing more. For being more economically competent and diligent.
Hmmmm....
See the problem here?
Consider that in any system -- you get more of the behavior you reward.
In the home, schools, businesses, hospitals, government offices, prisons.... any place people gather and work together.
If you reward the behavior you DON'T want, you will get more of it.
Conversely, it is common knowledge that when the desired behaviors are acknowledged and rewarded institutions get what they want.
To illustrate this, let's as what would happen if we used the same logic for the law.
Generally speaking an offender will receive a LONGER sentence for Murder 1, than for Murder 2. And likewise, Murder 2 is more harshly treated than Murder 3.
Just a little refresher.
Murder One is planned and premeditated. Murder in cold blood so to speak. Murder Two could more accurately be called a crime of passion. And of course, Murder Three is basically killing by negligence.
What would our system of law and justice look like IF --- as with "progressive" taxes --- the law deal lightly with the most heinous behavior and harshly with trivial offenses?
To illustrate my point, indulge me.
What if we had a system that meted out the harshest punishment for Murder 3 and the lightest for Murder 1?
Insane - Right?
Unbelievable. Twisted.
Back to our question of taxation.
How is Punishing people for earning MORE money any different?
Are you angry yet?
Are you defending the current system?
Why?
Because you've never known anything else? Or because it really is the best?
All right. Let's just say for a moment it IS somehow the "right" thing to do.
That somehow punishing the most productive members of society is good.
But --- even if that be so --- by the simple law of human nature and psychology
won't we tend to get more of what we reward?
Won't the countries with the most "progressive" systems tend to get poorer and poorer?
And those jurisdictions with less "progressive" tax policies richer and richer?
If you're like me, you see that -- even though it might still feel a bit strange because
of the propaganda we've been force-fed our whole life -- a REGRESSIVE
tax makes a lot of sense.
Let's go one step further and imagine a regressive system for a moment:
In a regressive system of taxation, the bottom earners would pay the highest rate.
Let's say we split the population into 4 tiers.
The bottom 20 percentile
The middle 20 - 80 percentile and
The top, from 80 - 99
And then the top 1 percent.
Let's say the people earning the least pay 25% tax.
The middle pay 15%
Those from 80-99 percentile 5%.
And the top 1% pay NO tax at all.
Would YOU be motivated to earn more money?
So --- How did you do? Is Tax a Sacred Cow for YOU?
If you did, it's OK.
The important thing is to begin thinking...and questioning.
Being willing to examine things we've taken for granted up till now.
To slay sacred cows where ever we find
them.
Because we ALL have them. It's just human nature. We all have blind spots.
The mark of humanity, though, is to have fewer and fewer as one grows in years
and hopefully wisdom.
But just be forewarned. when you begin slaying your sacred cows,
I hope you'll be careful who you share your views with.
Because there are vast numbers of people ready to kill for their beliefs.
Beliefs which most have never examined or questioned.
We see many of those people on the TV and in the newspapers shouting that they are
part of the 99% and proud of it.
Well --- this may be the subject for another post, but I wouldn't never proudly
shout that I was part of the 99%.
I have too much respect for and understanding of the contribution the top 1% make to bad
mouth them.
Anyway - I vote for a regressive tax system that rewards the most productive, intelligent
diligent humans. Not one that progressively kills the golden goose...
How About You?
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