Interesting article by Terence Corcoran on taxes and income. I am not a big fan of the progressive income tax. Our ridiculously complicated tax code costs billions of dollars to collect taxes. Why should higher income earnesr shoulder so much more ofthe nations expenses? Doesn't that just reduce productivity and cause the very rich to flee or otherwise alter behaviour to the detriment of the Country? I think Canada would be better off with a flat tax.
For several years now the American left has been fixated on the idea that the United States has become a divided nation in which an aristocracy of the rich, the super rich and the stinking rich have subjugated the poor, the middle class and everybody else, turning America into the equivalent of some pre-Robespierreian France. This Marxist class war message was embedded in President Barack Obama’s first budget: “For the better part of three decades, a disproportionate share of the nation’s wealth has been accumulated by the very wealthy.”
The basis for that claim and others in the Obama budget is the work of Thomas Piketty and Emmanuel Saez, two economists who in recent years have become the darlings of activists and politicians whose prime aim appears to be to foment class envy and promote new higher tax rates and bigger government. One of their graphs appeared in the Obama budget, apparently showing that the “top 1% of earners have been increasing their share of national income” to the point where the stinking rich 1% earn 20% of the total, double their share from 10% in 1980.