Re: Salary versus Equity
Progressive taxation is envy/greed dressed up in hypocritical sanctimony. Tax everybody at the same flat rate so everybody has equal marginal risk in the game when bad decisions are made.
A flat rate of tax is a ridiculous notion to anyone with any shred of compassion.
There are fixed costs associated with living. Let's make a completely out-of-thin-air made-up assumption that it costs £6,000/year (£500/month) just to survive in this country, with no leisure expenses. I can't be bothered to do the research to get the correct figure, but the principals I describe apply whether this is lower or higher.
Now let'd take three people: Poor, middle and rich (in terms of income).
The poor man earns minimum wage. This equates, on a 40hr week, to approximately £13,500 p.a. salary. As we are using a flat rate of tax, I will assume (again plucked out of my arse) it will be around the same as our basic rate is now, which is approx 30% including NI. He will, therefore, take home less than £9,500. After taking into account living costs, he takes has £3500 remaining, or less than 26% of what he was paid.
A middle income guy earns £30k/year. After tax he takes home £21,000 of which £15,000 is "disposable". So he has 50% of his income to play with.
A rich guy earns £300k. He takes home £210,000 of which £204k is disposable. 68% is left.
Can you not see that this is grossly unfair on the poor guy? Although the rich guy is paying the most tax, he can afford to. He has plenty to pay for it.
A flat rate of tax hits the lowest paid the hardest. In a society which makes any claim to fairness, this cannot be allowed. Those who can afford to pay more should pay more.