[quote]Originally posted by Davros:
Quote:
Originally posted by Timber Loftis:
[qb] One of the things that stifles success is prohibitive upper tax ranges on people trying to break into the upper income brackets. It also generates a massive industry in tax avoidace accounting. The good thing about a broad based consumption tax should be less fraud and less fraud industry.
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Well, the "fraud" industry is a fair statement. Though, if you can get a deduction and don't take it, isn't it your own failing?
Anyway, the misconception with the income tax that the upper tax ranges keep people from breaking in is wrong. Say you are in the 15% bracket and want a new job that will put you in the 20% bracket. Well, you only pay 20% on the amount ABOVE the 15% cutoff level. On the first dollars, then, everyone pays the same rate. You are only charged the higher rate on your dollars that exceed the lower cutoff.
Hope I didn't mistake your meaning with the comment.
