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Let the people who can earn more, pay more?

April 21st, 2008 by Administrator
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I guess it happens in most companies, and in most countries.

Those that do well, also gets to do more. Those that do more, also earns more.

Even in the United States ( as in most countries), the affluent are increasing their wealth faster than those that are poor. And i don’t think any tax system can fix this…

In the United states, the top 1% of taxpayers now pay almost 40% of all income tax, while the top 10% of taxpapers kicked in 70% of the total income tax. Whereas the bottom 40% have, in aggregate, an effective tax rate that is negative — that means that they received more money thruogh the income tax system because of tax credits, than they paid. I would reckon this disparity is also having a similar trend in most countries.

What can be done?

I believe that instead of asking the people who have more to pay more, and decreasing the burden of those that have less, maybe the only way to fix this is to focus resources on getting more people upto speed and equipping them to earn more.

As the old trite saying goes, ” teach them how to fish, not give them fish.”

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