Yes, it is fair. I support progressive taxation. Don't get too carried away with that argument. There is a cap on the amount taxed for Social Security, which makes it a regressive tax. At the same time, we need to make sure that the poor and middle class still pay into government, and the current tax rates do a good job at that. Once the Congress passes a deficit-neutral healthcare reform program, we can work on getting the deficit under control. There's a plan in Congress to create a commission that will report to Congress at the end of this year on specific spending cuts and tax increases that we can do to start fixing the huge deficits of Bush's eight years, as well as the first Obama budget.
There's a cap on social security benefits as well, Paul, and it has a very poor return on investment the higher your earnings might be and, in fact, you get taxed on it again later if you earn over a certain amount. How is that "fair"? It adds no value to your estate and it is never really yours even though you paid in to it all your life. It can be used to pay for someone else who didn't earn it.
In fact, how is it "fair" at all that one man pays more or less for the same services he receives from his government? If a wealthy man can afford to pay more for more that's one thing but if he's required to pay more for less that actually rather unfair.
A wealthy person pays more in income tax, sales tax, estate tax, property tax, etc. than a less wealthy person and yet receives more or less the same benefit.
Two things are, however, very unfair. One is the person who pays no tax but enjoys numerous benefits not available to others who earn more. This, of course, is welfare. The other is paying much more for the same services. This is especially true with property tax. It costs no more to provide government schools, police, fire protection, etc. for a wealthy man and his family as it does a poor man and his.
The tax rebates are an insult on top of insult. People who pay little or nothing receive the same rebate than those who pay much more. How is that "fair"?
No, our tax system is very unfair.
It is popular to call for more taxes on "those who can afford it" because it lets us get the things we want off their income rather than ours. It is just selfish thievery by the force of "law" and to buy votes.
