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Politics : Libertarian Discussion Forum
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To: Don Lloyd who wrote (2935)5/27/1999 8:27:00 PM
From: Richard Babusek  Read Replies (1) of 13056
 
Don,
My hypothetical was just that, assume the only income tax was 50% on > $100k.

This was just an example to show the effect of a step function change that Joe Six Pack could understand, isolating the principle of the effect of step functions.

It has nothing to do with US progressive tax rates, and everything to do with the single principle isolated from the others even if naively proposed for simplicity.

The progressive nature (granularity) are in fact the quantitative issues that mask the qualitative principles, the effect I am railing about here!
[The effect is not so bad if we have two steps, or three.]
But the effect remains, only now more easily dismissed or more likely ignored.

Now if you add enough steps, it's not a step function but a continuously variable rate, and the gaps disappear.
That's not a system without problems, but they are of a different "kind", and the solutions have a different nature.

Ricardo
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