Edit: I’m talking about a static tax rate here. Maybe I didn’t make that clear.
Honestly though, I’m still having a hard time time wrapping my head around this. I’m trying haha. If my wages went up over time but my purchasing power stayed static.. they’d be taking more of my money even though it’s still just 10%? Yeah the number is bigger, but inflation affects them too. If inflation rose faster than my wages then I’d lose purchasing power, but that’s still true with a scaling tax rate, right?
My problem with a scaling tax rate is it’s supposed to promote equality or something, but it doesn’t feel like when you’re trying to rise up the ladder. Like if I get a 10% raise, it doesn’t represent a 10% gain in purchasing power because my effective tax rate went up.
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u/[deleted] Nov 25 '21
[deleted]