slavekate80
Posts: 362
Joined: 7/4/2013 Status: offline
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Taxes could be raised on everyone, but it would have to be done by raising it least on the poor and scaling up from there; otherwise it would be unfair due to the marginal value of money. If Jack makes $20,000/year and Bill makes $200,000, a 10% decrease in income is going to hurt Jack's standard of living more than Bill's, even though Bill loses more straight-up funds. Jack is probably spending nearly every penny on things like electricity, rent, and food; cutting two thousand dollars from his budget will be difficult. Bill, unless he has sky-high medical expenses, will only have less disposable income, less money going into savings and investments, and possibly have to make adjustments like driving his old car for a couple more years instead of choosing a new one.
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