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| ▲ | oblique 2 days ago | parent | next [-] |
| The taxes will have to come from somewhere. Tariffs are a regressive tax because money spent on goods will increase sublinearly with income. The % of total income spent on tariffs passed onto the consumer is therefore higher the lower your income is. It's not "ridiculous far left extreme thinking", it's basic math. |
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| ▲ | czzr 2 days ago | parent | prev | next [-] |
| It’s very, very basic economics - the marginal utility of money decreases, so progressive taxation is better than regressive taxation. |
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| ▲ | SpicyLemonZest 2 days ago | parent [-] | | It's basic economics in the sense that it's an oversimplified toy model. In the real world, every country I'm aware of gets a substantial amount of its tax revenue from consumption taxes, and indeed the US's lack of VAT means it's currently much more dependent on progressive income taxes than peer countries. (https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-i...) | | |
| ▲ | czzr 2 days ago | parent [-] | | I responded to a comment that called progressive taxation a crazy “far left” idea - I’m not sure the second and third order details of taxation policy are really relevant here… But ok - yes, sure, in real life it’s a mix and the mix is worth debating. Note also that consumption taxes often have exemptions/reductions to offset the most severe regressive effects. |
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| ▲ | oaiey 2 days ago | parent | prev [-] |
| With great power comes great responsibility. Is as simple as that. Is true when you are a strong man, is true when you are a family father and is true when you are a rich person. |