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Thread: Adam Smith and the Progresive Taxes3010 days old

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    Default Adam Smith and the Progresive Taxes

    After reading for third time Adam Smith's Wealth of the Nation i realize he was actually a socialist. :sad:

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    I. The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state. The expence of government to the individuals of a great nation is like the expence of management to the joint tenants of a great estate, who are all obliged to contribute in proportion to their respective interests in the estate. In the observation or neglect of this maxim consists what is called the equality or inequality of taxation. Every tax, it must be observed once for all, which falls finally upon one only of the three sorts of revenue above mentioned, is necessarily unequal in so far as it does not affect the other two. In the following examination of different taxes I shall seldom take much further notice of this sort of inequality, but shall, in most cases, confine my observations to that inequality which is occasioned by a particular tax falling unequally even upon that particular sort of private revenue which is affected by it.
    Last edited by sean; 2011-07-27 at 21:06.

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    Do you consider anyone who supports a progressive taxation as socialist?
    It's not that I hate you, but let's say that if I had two bullets and Hitler was next to you, I would rather shoot you...twice

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    Some liberals (eg Guy Sorman) promoted ideas of negative taxes.
    http://www.city-journal.org/2011/21_1_income-tax.html

    Its not a measure of progress to be an ultra liberal who supports animal world rules in peoples world. Even animals have some rules.

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    Progressive taxation usually push rich people to hide their wealth in Cayman islands.
    I think it is not a good idea.

    Quote Originally Posted by carlos View Post
    Do you consider anyone who supports a progressive taxation as socialist?
    Not necessary.
    Last edited by sean; 2011-08-01 at 21:58.

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    Quote Originally Posted by sean View Post
    Progressive taxation usually push rich people to hide their wealth in Cayman islands.
    I think it is not a good idea.



    Not necessary.
    This is the clash between what is real and what is right, old economical debate, unresolved forever.

    My opinion is, rich people want pay 0% taxes, you lower from 40 to 30 they will still maon and groan, you go down to 15 they will still go to Monaco and pay 3, till you drop to zero.

    I am not jealous about money, however it pisses me off that some of these rich fuckers abuse laws and just laugh in peoples faces. You earn your money in country A, you should pay taxes in country B. It doesnt happen in this case. Second thing is, they use other people's resources, but dont want to contribute. Third thing is, these corporations and their bosses choose freely law appying to them. They pay taxes according to Monaco law, but workers rights according to China law, patents law according to US law and insurance law according to UK law etc.

    I would like to have this opportunity, to choose law I want. I download illegal Windows and when police gets me I would say 'I am choosisg chinese patents law applying to me' and if I kill my wife for being unfaithfull i would say 'i am having sharia law applying to me in this case' But I cannot do that and they can, and its in open lights.

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    I agree, i like free market but transnational companies should be limited. Nicolas Sarkosy proposed to end with the tax heavens last year during a G8 meeting, he was ignored.

    Quote Originally Posted by Kwestos View Post
    This is the clash between what is real and what is right, old economical debate, unresolved forever.

    My opinion is, rich people want pay 0% taxes, you lower from 40 to 30 they will still maon and groan, you go down to 15 they will still go to Monaco and pay 3, till you drop to zero.

    I am not jealous about money, however it pisses me off that some of these rich fuckers abuse laws and just laugh in peoples faces. You earn your money in country A, you should pay taxes in country B. It doesnt happen in this case. Second thing is, they use other people's resources, but dont want to contribute. Third thing is, these corporations and their bosses choose freely law appying to them. They pay taxes according to Monaco law, but workers rights according to China law, patents law according to US law and insurance law according to UK law etc.

    I would like to have this opportunity, to choose law I want. I download illegal Windows and when police gets me I would say 'I am choosisg chinese patents law applying to me' and if I kill my wife for being unfaithfull i would say 'i am having sharia law applying to me in this case' But I cannot do that and they can, and its in open lights.

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    correction: I wrote You earn your money in country A, you should pay taxes in country B. it should be obviously You earn your money in country A, you shouldn't pay taxes in country B.
    thanks

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    You know what even Karl Marx have soft spot for entrepreneurs. Is he capitalists? Who knows.

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    He was a classical economist, not really a socialist. Economists have basically been teaching future business people, how to extract every bit of economic rent that is possible, by showing that monopolization, price discrimination, failure to pay full costs of production, and labor exploitation enhance profit. In addition, the basic theory of the firm justifies profit-maximization as the highest objective. Smith was way too sophisticated to be so easily bracketed, but you rarely come across the many such cautions he issued in The Wealth Of Nations, alongside his near mythological reference to what we call the Invisible hand. The idea of a market based economy was an abstraction to Smith. He did not think we should implement it. However, he did not believe in labor theory of value. As Smith points out, business types look at high wages as a cost that raises prices, and gets in the way of the delivery of an abundance of goods and services to society. Somehow, they never seem to see high profits in the same light. Yet society at large is paying for both. Should society be indifferent to profit levels, but scandalized by higher wages? Does a rise in the minimum wage undermine employment, the way the economists preach? If so, does not high profit? Smith certainly seemed to know the answer.

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    A progressive tax rate is unfair and stupid. Tax everyone equally, i.e. everyone pays 15% of their income.

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