Saturday, April 14, 2012

Progressive Taxation and the Proletariat

One of the most popular tools of the politics of envy is progressive income taxation. The Proletariat love it, since ostensibly this sort of tax scheme gouges those better off than them, and brings the well off down to the Proletariat's level. The reality of progressive taxation, however is quite different from the story often sold to the unwitting public.

A hint that we ought to be suspicious of the standard line is the fact that many extremely rich people support the progressive income tax, and call for increases to the marginal rates. In the video bellow Ludwig von Mises Institute founder and Chairman, Lew Rockwell, explains why billionaire Warren Buffet is calling for higher income taxes on high income earners.

Since it does not tax wealth already accumulated, progressive income taxation works to maintain the status quo . Thus, by being deprived of a large chunk of their earnings, up-and-comers are unable to accrue wealth; while those who have already amassed their riches, say Warren Buffet for example, don't need to earn as much income any more to maintain their level of wealth.

Besides, the Warren Buffets of the world--the present day Aristocracy--can use the coercive power of the State to expand their earnings beyond what the free market would have allowed for them.

Yet, making this truth clear to Proletarians only works to redouble their infatuation with the progressive income tax scheme. For, more than anything, what Proletarians hate is to see someone they, rightly or wrongly, consider their equal end up better off then them. They don't mind that their "fellow" is unjustly robbed of what he honestly earns; they don't even mind that this practice creates a static class society; they don't even mind the fact that a static society means that their lives will not improve, so long as all Comrades remain equals in misery.

No comments:

Post a Comment

My Zimbio
Top Stories