Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

I've asked this before but never got a proper answer. What difference would it make if the rich paid more tax?

If the top 10% of richest people had to pay twice as much tax, they'd still be the top 10% richest people, they'd just have fewer zeros in their bank accounts. But there would still be the same number of yachts and Rolls Royces to go around, so the price of those would just come down. But still only the top 10% could afford them.

Similarly, if the bottom 10% of people now have more zeros because they pay less tax, there would still be the same amount of food and low-end luxury goods to go around, so the price of those would go up.



Add the time element.

Think of a bunch of bowls, with a flow coming in the top, and a drain or spillway.

The rates of filling and draining matter. Most especially if the rate of draining is dependent on the quantity of water in the bowl.

If drain rate increases with volume, the size of bowls tends to remain reasonably equal with time.

If the drain rate decreases with volume, large bowls get ever larger.

The present tax scheme in the US (and in many other locations) is the second model. Large bowls get larger.


I didn't ask for an "ELI5" style explanation, but thanks anyway.

I still don't see why it matters. So the rich get richer. But it's just more zeros. What practical difference does it make?


At a given point with enough draining, the rich stop getting richer.

You've made a mistaken assumption.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: