Post
Topic
Board Economics
Re: Economic Inequality
by
odolvlobo
on 22/11/2014, 20:12:33 UTC
It is the government that creates increases wealth inequality.

If not for progressive taxes, wealth inequality would be higher.  Smiley

Prove it.

Cite peer reviewed evidence or argument from first principles.

Because if not for progressive taxation, rich people would pay less in taxes, and poor people would pay more.
Are you suggesting that rich people paying less in taxes would make them poorer?
Or that poor paying more in taxes would make them richer?
Those are the only scenarios which would reduce financial inequality, and both are self-contradictory.

It is not so cut and dry. A progressive tax reduces the productivity of the most efficient producers. Reduced productivity results in more expensive goods for the poor, countering the benefits of their lower taxes.