(November 11, 2014 at 8:52 pm)Heywood Wrote:Can you do the math and show this? I doubt this will result if you do a marginal tax cut that matches the tax rate.(November 11, 2014 at 12:10 am)Surgenator Wrote: The main conclusion about the percentages saves comes from applying a flat tax cut to a non-flat tax rates. To keep things fair, you should not apply a flat tax cut but a marginal one that matches the current system.
Even if you reduce the marginal rates across all brackets the rich are still going to receive the greatest reduction in dollars terms because they pay more. That is the point of the argument.
Quote:Some of the other claims of the critique you provided are just plain wrong. The claim that the rich would be ordering more expensive beers or going to higher end bars and therefore the analogy doesn't follow is just silly. The bar which is paid represents the government. Rich and poor alike are all customers of the same government so its an appropriate to analogy to have the rich and poor all drinking at the same bar.
Even though it comes from the same government, it doesn't mean they're using all the same services or access to the same deals. That's what the critique was pointing out.