this post was submitted on 15 Aug 2023
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[–] SatanicNotMessianic@lemmy.ml 5 points 2 years ago (1 children)

I think that a 4% hit would be a lot for people making significantly less money.

The utility of each dollar drops the more you have. $1000 would be a massive amount of money to someone making minimum wage. $10000 in a single check might seem like a life changing amount of money for some people. At higher levels of wealth and income, those values would be far less significant. If you were to raise or reduce the salary of a typical Bay Area software developer by $1000, for instance, they probably wouldn’t even notice. And they’re not making $1M per year, either.

The reason we have things like a progressive income is that we can tax someone making $1M per year an extra $40k - as much or more than many individuals make - and it’s not going to seriously affect their spending or saving habits. If we tax someone making $50k an extra $2k, they would feel it.

[–] SCB@lemmy.world -1 points 2 years ago (2 children)

I'm aware, but Americans are also dramatically under-taxed, and as a result most of our support structures are dramatically underfunded.

50k is below the third quintile so wouldn't really be touched. Third quintiles starts at 61k.

[–] thecrotch@sh.itjust.works 3 points 2 years ago (1 children)

Americans are not under taxed, our federal government has plenty of money for whatever social programs it might want to provide. Our money is spent instead on a bloated military and pointless pet projects. How many health insurance plans could you buy for the price of one submarine or drone?

[–] SCB@lemmy.world 0 points 2 years ago (1 children)

We are very under-taxed as well as wasting money at most levels of government.

[–] thecrotch@sh.itjust.works 1 points 2 years ago (1 children)

We have enough to pay for all the social programs you could ever want, how is that "under taxed"?

[–] SCB@lemmy.world 1 points 2 years ago