@BillRM,
BillRM wrote:
I ran into that kind of situation many years also where two brothers who was join owners of a paving company and earning many times my income were paying less taxes then I was at the time.
The thing to understand, Bill, is that while wishing to reward talent, invention, or innovation, all wealth is part of the commonwealth and should be returned to it eventually... When property tax was the primary tax in this country property was cheap because it needed labor to make it profitable, and needed profit to support itself in private hands... Labor was dear because it was needed to make property profitable... Taxing income which means taxing wages, though it was no so intended by those who made the income tax constitutional drives down the price of labor... It does so in this fashion: A person working hard and long to make his wages and a profit must work even harder and longer to make a profit and pay taxes, and this extra work means he produces more, which lowers both the price of his product and his wages...
The rich complain about nearly 50% paying no income taxes which does not mean they pay no taxes... It is a situation they have created themselves by forcing more people into the work force and driving down wages to the subsistence level... A greater supply of labor lowers the prices, and a lower price forces people to hold two jobs, or for mothers to join the work force which again, drives down price of labor by increasing the supply... And all the time, lower actual income -due to increases in profit and taxes drive down demand which lowers the price of goods and ruins the domestic market... Instead of returning wealth to the commonwealth, taxes on wages has been the means by which wealth has been removed from the commonwealth and concentrated in the hands of the rich...