Thursday, February 5, 2015

As the rich get richer, so does the state

Everyone in government really hates the raising levels of (material) inequality. At least, thats what they say. 

I mean, this inequality obviously only helps the 1% and nobody else, right?

Hmmm, let's think a minute here. 

We have a progressive tax system, yes? 

That means that the more you make, the more they take. Not just as an absolute, but as a percentage.

That means that the higher the "share" of the "economic pie" that goes to the rich, the more, in turn, of that "pie" is going to big government. 

Example:

Let's say the bottom rate of tax is 10% while the top rate is 50%. 

The government gets more loot if $100 goes to one top rate guy, than if it goes to ten bottom rate fellows. ($100/10 = $10. 10% of $10 = $1. $1 x 10 = $10. Whereas 50% of $100 = $50.)

So, is it just some happy windfall? Some silver lining to this horrible problem inherant in capitalism (which, according to Thomas Piketty, needs to be curbed by even more extraction of loot)?

This can't be some sort of quid pro quo thing, can it?

It's not like theres some Government sanctioned entity causing this inequality, right? 

(cough, inflation!, cough)

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