Re: If we taxed the rich properly
The real problem is that the whole tax system is based on declared income. This means that there are some serious distortions to the system. Once you get paid over 100K it is worth paying experts to find ways to write off losses for investments in shell companies owned by your dead maiden aunt, claim expenses, and offshore the rest of your income. Top people also get paid in shares so they pay a much lower rate on capital gains. etc. At the lower end some people have occupations which enable them to declare all their payments made by cheques, but hide cash payments. The only people who pay tax based on their true income are those paid a salary as opposed to remuneration.
I know all this is a gross oversimplification of an extremely complex situation but the real problem is the badly written rules on allowable losses which the super rich can use to offset their income.
@Alladin Sane, good work finding the beer analogy. Where it falls down though, is the way it doesn't tell you that the 10th man lives in a 50Million mansion full of 250million worth of saleable contents inherited from his grandfather.
Biting the hand that feeds IT
