The other side being the people who do not have the means to create policies.Sure, taxing everyone 15% sounds fair. The more income, the more tax, and *supposedly* vice-versa.
However, what’s not being taken into account is that 15% taxation on those who currently don’t pay taxes (and on those who currently pay a smaller percent) could be a disastrous policy creating an even greater divide between the poorest and the wealthiest.
Take a salary of $13000. Currently, this worker is not paying taxes. They’re barely making any money as it is. Now, strip them of 15% of their income for a mandatory tax. Those hundreds, on that salary, could make the difference between paying bills and paying bills without incurring a bank overdraft.
Alternatively, consider the effects on the wealthiest. Someone like Romney who makes $42 million a year, currently, is paying around 30% taxes on that income. At the end of the day, is that cutting into their means to survive? Is it cutting into their very basics, such as food, housing, and clothing? Not at all! Reducing their tax to 15% “to make it fair” is only adding more into their bank. Sure, more capital will allow them more freedom to do the things they want to, and everyone should have the freedom to use their earnings for their own means, however let’s weigh in on which means deserve more protection.
The argument of which is more important: achieving the basics versus achieving complete self autonomy has been decided by the self-actualization pyramid which placed the basics in a much more weighty role than self-autonomy. Self-actualization is a very valid concept and it is no secret that the wealthy have much more means to achieve it.
Yet, as a society, should we place equal importance on a person’s ability to achieve complete self-actualization as we do on a person’s ability to meet their most basic needs? Should our policy give equal weight to the plight of the rich versus the plight of the poor? The 15% tax model does exactly this.
Taking in this reasoning, we have assessed what is really at-stake for each class group concerning this tax model. Now, let’s assess the pains. The person with a $13k salary will experience a lot of pain when almost $2k is automatically removed for a mandatory tax. On the other hand, the person with the $42 million salary will lose $6.3 million to the mandatory tax (assuming he doesn’t finagle his income to show up as less than his actual profits). While the difference of losing $2k to losing $6.3 million is significant, the man with the $42 million salary will still have $35.7 million to add to his name, for that single year, whereas the man with the $13k salary will only have $11k remaining, of which every single penny is going to his basic needs.
The current tax policy does its best to allow everyone the fair chance to attain a reasonable salary, while taking the excess and injecting it into the poverty level. This is a message right from our constitution which ensures this society will do what it can to help everyone achieve life, liberty, and the pursuit of happiness while blocking entities from attaining too much power. It is a cycle that has worked for a long time (although it could work better). A policy that can work so long as greed is kept at bay, but unfortunately recent events have caused the poor to want more and the rich to give less. The Obama administration inspired the tax code to bend a little more in favor of the poor and this has caused the delicate balance, the dam holding back the greed, to crack.
Now we are seeing the rich and poor fighting tooth and nail to create policies that will benefit their class. The 15% tax policy might sound fair, but will it really create a cycle that funnels money appropriately?
For now, let us all remember that the world rotates. Without a balance of North and South, East and West, everything will return to the center… and no one is prepared for that. We can’t make all the poor wealthy and we can’t make all the rich poor. However, what we can do is retain the delicate balance that funnels money in a cycle that meets everyone’s needs.
We cannot do that if we force everyone to pay a mandatory 15% tax.