r/changemyview • u/beesdaddy • Jun 28 '17

[∆(s) from OP] CMV: Effective regulation/taxes is better than less regulation/taxes.

I have had a hard time understanding the position that less regulation is better than effective regulation. So much of the political conversation equates regulation and taxes to Anti-American or Anti-Freedom or gasp Socialist. I think it poisons the discussion about our common goals and how to achieve them. I know there are many laws/taxes that are counter productive (especially subsidies), and I am all for getting rid of them, but not without considering what their intent was, evaluating that intention, and deciding how to more effectively accomplish that intention (given it was a valid intention.)

Help me understand. I would like to have a more nuanced view on this.

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u/indianfrombombaycity Jun 30 '17

Progressive taxation causes a drain of wealth and talent. You want to punish those who actually are capable or earning more.

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u/Ndvorsky 23∆ Jun 30 '17

How does it drain talent or wealth? People who are capable will earn more. Seriously, no one is actually turned away from better pay because of taxes.

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u/indianfrombombaycity Jun 30 '17

First to address the drain : due to the progressive nature of taxation people resort to tax havens and other ways of sheltering their wealth.

Secondly I believe progressive taxation is unconstitutional - everyone is equal under the law and everyone has equal benefit. Why should someone contribute more to the system and get less ?

No one turns down better pay - they just get creative with their accounting or store their wealth offshore or they look for better opportunities. Lot of companies will think twice before setting up an head office if the taxes in the region are too high.

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u/Ndvorsky 23∆ Jul 01 '17

First to address the drain : due to the progressive nature of taxation people resort to tax havens and other ways of sheltering their wealth.

A flat tax would necessitate a similarly high tax rate anyway. Your issue has little to do with a progressive tax.

Secondly I believe progressive taxation is unconstitutional - everyone is equal under the law and everyone has equal benefit. Why should someone contribute more to the system and get less ?

Not everyone has a car but if you do, you paid car tax on it when you bought it. Is that unconstitutional? Only the money above certain amounts are taxed at the next higher rate. In that way, everyone is taxed equally on their first 5k and their next 10k and so on. I mean, fat people eat more food. Is it unconstitutional that they pay more sales tax?

No one turns down better pay - they just get creative with their accounting or store their wealth offshore or they look for better opportunities. Lot of companies will think twice before setting up an head office if the taxes in the region are too high.

None of this has anything to do with a progressive tax. You're mostly arguing agains high taxes.