Wednesday, June 2, 2010

Trickle-Down or rather Trickle-Up Taxation

The point of tax season (at least in the US circa-now) is social engineering, don't let anyone tell u otherwise.

The point of taxes originally was to ensure each portion of the population pays their fair share of nation maintenance. But with some estimates of it costing 2x as much to collect 1x tax comes in, that fair share is exhausted before it reaches gov't budgets. The only way to make it back is thru the manipulation of ppl making choices conducive to the gov't (encourage retirement savings thru tax credits/thrifty-ness to buy a home) via the portion of their income not taxed. Perpetual debit balance is resolved thru monetary policy of managing inflation/deflation?

You might think that filing taxes on an individual level provides a 2ndary perspective to ensure the rich (or employers) don't cheat. (since headcount is the primary expense). But if you go thru the mechanics, you come to realize it's not inefficient for the rich to profit from that method. No, the key of enforcing filing taxes on individuals is to educate the american ppl on the perks of following how the gov't wants us to live.

I forgot why I called in Trickle-Up or Down taxes.

*Note the subtlety of taxes and tax season. It's different but related.

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