Saturday, May 1, 2010

Regressive innumeracy

This example of innumeracy comes from an article published in a 1995 issue of a Polish right-wing magazine called Fronda (don't ask me how I found it). In the article, the author argues for a regressive income tax (i.e. income tax such that the higher your taxable income is, the lower tax rates you have to pay) on the grounds that progressive taxation punishes for trying to get rich, and even flax tax does not reward it because when income tax rate is flat, high income taxpayers still pay more money (in absolute terms) than low income taxpayers.

The belief that rich taxpayers should pay less money than poor taxpayers shows profound commitment to a certain social philosophy. The belief that regressive income tax rates guarantee that high income taxpayers will always pay less than low income taxpayers shows profound confusion about middle school-level algebra. I'll leave it to the readers to construct a numerical counterexample.

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