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Does anyone know anything about the Boston Tea Party? I have heard that it
involves taxation, but would like more info on the subject!
We're both right. In percentage terms, lower income consumers benefit
more,
but in absolute terms, the wealthy will benefit more. The reason I focused
on the impact in absolute terms is because the same logic applies to tax
rate reductions
The Republicans recently proposed cutting all tax brackets by 2 percentage
points. Just to use even numbers, if you reduce a 40% tax bracket to 38%
and a 20% tax bracket to 18%, someone in the lower bracket has clearly
benefited more in percentage terms. Their tax bracket has dropped 10%,
while the higher one has only dropped 5%. However, someone earning $500K
in
the higher bracket has received a $10K reduction, while someone earning
$50K
in the lower bracket has only gotten $1k.
As I said, the same logic applies to debt reduction, but the same people
who
decry a tax cut seem to be (grudgingly) in favor of debt reduction... Go
figure.
Bruce
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