Please respond with an answer as I am not trying to debate; I only want an answer to this question:
I watched an interview on the youtube with Ben Carson and Bernie Sanders. The most interesting aspect is that they agree on a few issues. It should be noted, however, that they both have different ideas on how to address these issues.
The question of income disparity came up. Sanders’ belief is that the wealthy should be taxed as high as 90%, with the middle and lower classes to be taxed at a far lower percentage rate, and loopholes removed. Carson believes in a Fair Tax, wherein everyone be taxed at 10% of their overall income with no other taxes.
My husband says neither will ever happen as it would put too many govt. employees out of work. But if the US were to repurpose the IRS insofar as the employees merely sorted an individual’s income into say, 3% local, 3% state, 4% Ceasar, er, federal, and eliminate all other taxes and loopholes; this could work.
The Question: Imagine that you won a $1-million lottery. Now you are very wealthy, but that is not fair, so you must give 90% of your earnings to the govt. because they know how best to handle your newfound wealth. You should be very happy because the $100,000 you’re left with is just as good as $1million, right?
Now, pretend your neighbor makes $100,000 a year, so he must pay only 1% as that is what is fair. Now he has $99,000 and he is happy because this is fair.
On the other hand, if you both paid 10% of your earnings, you are left with $900,000, and your neighbor is left with $90,000.
Which of these in your mind is fair?