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Economists: US Poverty On Track To Hit Highest Level Since 1960s
First time accepted submitter eentory writes "According to economists and other experts surveyed by the Associated Press, the U.S. poverty rate is on track to hit its highest level since the 1960s. The consensus among those surveyed is that 'the official poverty rate will rise from 15.1 percent in 2010, climbing as high as 15.7 percent.' Just a 0.1 percent increase would put the poverty rate at its highest since 1965."
The problem is taxation. Taxation is based on income rather than wealth. Everyone agrees the government should defend property rights so the more property you have and therefore need defended the more tax you should be paying. Keeping a continual exchange of wealth doesn't reduce the cost to maintain it, so it shouldn't reduce the tax on it. Nothing should.
If you aren't producing enough income to offset the cost to maintain your wealth the tax should be reducing your wealth and causing it to go back into the system. If you have a high income and spend every penny, then someone is getting wealthier off you, that person will then pay the tax. Of course as Brewster's millions taught us, it actually isn't very easy to spend money without acquiring any wealth even if you are actively trying. If it is very unfair and counterproductive to punish high earners because they are often high producers. But there is nothing at all wrong with the people who the wealth pools at having to pay the cost to maintain the infrastructure that allows the wealth to be created and maintained. They are the ones who ultimately benefit from that wealth being created.