{"type":"rich","version":"1.0","title":"layman_economics wrote","author_name":"layman_economics (npub1qg…4rcph)","author_url":"https://yabu.me/npub1qgeaghrk88cppqfyc64syx0fkau6zma5vpg3uv9e4432gukk2ynsa4rcph","provider_name":"njump","provider_url":"https://yabu.me","html":"One of the things that hinder a country’s economic growth is the idea of progressive tax rates.\n\nMany people who support this idea believe this to be a way of taking the rich’s money to help the poor (they believe the rich have more than they need anyways).\n\nThis sounds kinda nice but let’s examine this in more detail.\n\nSuppose I put a gun to your head and say, “You have more money than you’re ever going to need. So, you need to give me some of your money and I’ll use that money to help orphans.”\n\nWould my behavior be acceptable? Of course not!\n\nBut that’s what the government’s doing via progressive tax rate!\n\nIf the rich don’t pay their taxes at the progressive rate, the government will fine them. And if the rich refuse to pay the fine, the government will send someone to the rich’s house. And if the rich refuse to let that person into their house, that someone’s going to force themselves into the rich’s house.\n\nThe idea of progressive tax rate might be well-intentioned but forcing someone to ‘do good’ or ‘help others’ is not a good idea.\n\nEven if the rich can somehow be successfully coerced into ‘helping others’, do you think the rich will be happy to see their money being spent on other people?\n\nThey will not.\n\nThe rich, who was basically robbed, will be more likely to feel resentful.\n\nThey might even move to tax haven countries, like Singapore and Switzerland. \n\nAnd when their companies move to another country, many employees will be laid off, causing unemployment to spike.\n\nFurthermore, progressive tax rate significantly affects people’s desire to work. \n\nWhy would people want to work hard when they’re going to get taxed to death?\n\nThese are some of the reasons why, I believe, a flat tax rate is preferable to a progressive tax rate.\n\n#economics #tax #government"}