TaxCutResponse

[ Author of "27. Tax Cuts" unknown. I received it as a "Forward" with the name of a Professor of Accounting on the bottom. I sent to him this letter. He sent to me a letter stating that he did not write the story and he uses it to get his graduate students to think about solutions]

In order to use logical syllogisms as a foundation for sentential logic, we must start at the beginning. Saying B > C, therefore A > C, leaves us dangling. We have not discussed A and its relationship to B.

1.0.0. The tax system will be constructed so that a few people cannot gradually accumulate the wealth of the society.

1.2.0. People who work to create a tax system that makes it possible for a few people to gradually accumulate the wealth of society are refusing to consider the horrific upheavals of society that have been caused by such a system, e.g. French Revolution, Russian Revolution, English Revolution, etc.

2.0.0. Each person gaining wealth in the society will contribute a proportionate amount of that wealth to the government of that society in order to maintain the society.

2.1.0. The tax system used to take a portion of the wealth of a wealth producer will increase the tax rate in proportion to the amount of wealth that the person gains in that society. The more you benefit from the society the more you contribute.

2.1.1. A flat tax and a sales tax violate 2.1.0.

2.2.0. The tax rate will increase at the same rate for all income levels.

2.2.1. The current bracket system violates postulate 2.2.0. because it increases the effective tax rate very fast on low incomes and very slow on high incomes. It is a negatively accelerating curve.

2.3.0. There will not be any exceptions to 2.0.0. Any exception violates 1.0. and brings the society closer to destruction.

2.3.1. There will not be any exceptions because of the source of the wealth: Stock sales, capital gains, inheritance, salary, wages, agriculture subsidy, welfare payment, gambling.

2.3.2. There will not be any exceptions as to the amount of the wealth. The tax system will be applied to the very first dollar that is received from the society.

3.0.0.0. A mathematical formula will be used to progressively increase the rate the same for all incomes. The Effective Tax Rate curve will be a straight line.

3.1.0.0. The slope of the curve will be adjusted from time to time in order to aid the society in adjusting to the current circumstances, e.g. a war or a depression.

3.1.1.0. There will not be a "tax cut" for a particular group: occupation, income source, income amount, etc. The slope will be increased or decreased depending on the circumstances.

3.1.1.1. It is astonishing that people vote for someone who says "I am for lower taxes". It is a long ways from being a Mensa grade proposal. Consider this: a group of politicians are running for office. Each one vowing to lower taxes more than the other. By election day, not any taxes will be paid. It is simple-minded.

The second concern should be: is the government using the money in a cost-effective manner. The legislators' and executive's job is to define which programs should be eliminated, and to specify how the remaining programs will be managed in a cost-effective manner. It is completely irrational and irresponsible to propose to increase or decrease the amount of money to be taken from wealth producers without first presenting a competent analysis of how the government is using, and will be using, the wealth that is taken.

4.0. People must receive a reward for their wealth producing behavior or they will stop producing wealth. The wealth producer must receive a greater percent of the wealth than anyone else.

4.1.0. Money is used to reinforce profitable behavior. The tax system must not be constructed in such a manner as to interfere with this operant.

4.1.1. The tax bracket system interferes with reinforcing profitable behavior. Some people say that they do not want to produce more goods and services because the reward for doing so will put them in another tax bracket.

4.2. At a 50% rate, someone else benefits as much as the wealth producer. There is not any incentive to produce wealth.

4.3. Above a 50% rate, lower income people take home more money than higher income people. There is no incentive to produce wealth.

5.0. The tax system must be so constructed that it greatly reduces reinforcing the motivation of greed.

To see the charts of the Tax Bracket system and the Tax Formula system:
hdyes.net -> Temporary Issues for Discussion -> Eliminate Income Tax Brackets.

I will elaborate on these postulates in my dissertation for a Ph.D. in Public Policy.

Harris Dyes
hdyes.net (click on "Harris Dyes" to see my Vita