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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Fred Gohlke who wrote (10940)	2/6/2006 1:19:08 PM
From: TigerPaw	Read Replies (2) \| Respond to of 541735

I'm unable to visualize a process with complex motivation and simple administration, Assume a tax system with no loopholes what-so-ever. Say the much talked about flat tax. Pretend that it's easy to know the income, so the administration is simple, just take a percentage of the income. It turns out a progressive tax (under the same assumptions) is just as easy to administor. Place the income through a simple formula and apply the result as the tax. The results are different though. The more money you make, the harder it becomes to make even more money. That is a negative-feedback cycle and tends to stabilize a dynamic system. There are many complex benefits to such stabilization and yet the administration is simple and transparent enough that it cannot easily be scammed. (Of course in the real world many loopholes and exceptions are introduced precisely to scam the system). TP