Thread: Tax Tidbit
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Old 11-09-2011, 09:10 AM
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Kuan Kuan is offline
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Join Date: Jan 2001
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Quote:
Originally Posted by Solid Snake View Post
Oh, just 40% don't pay, that's not that bad.
Person 1 makes $10k and pays no taxes on that $10k.

Person 2 makes $500k and of that, $500k, pays no taxes on $100k.

Is this equitable? IMO it is not, as person 2 just skipped out on paying taxes on $100k while person 2 skipped out on only $10k.

Person 1 puts $10k in the bank and gets a 10% rate of return.

Person 2 puts $100k in the bank and gets the same 10% rate of return.

Is this equitable? From a purely mathematical POV it is, at least it is to me.
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