Saturday, February 20, 2010

On taxation

The tax debate is in full swing in Finland again, this time regarding capital income and how it should be taxed progressively. It seems to me that progression is the trendy word these days, so I'm going to leap-frog myself over it and discover the next big trend around the corner: regression. What I propose is simple: regressive taxation. The more you earn, the more you pay taxes in absolute sense. But in relative sense your tax rate should decrease as a function of your income (be it salary or capital based).

But, this is still merely a stop-gap on our way to the ultimate goal: regressive taxation where relative taxes decrease so as to ensure that everyone pays an equal amount (in an absolute sense) of taxes, regardless of income levels. This would naturally be the ultimate fair and reasonable solution! Everyone would finally be equal, regardless of race, gender, wealth, and so on... ;)

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