Basically, I'm reiterating Ron Paul constitutional stuff... I just happen to believe in progressive taxation as the only way to break up a logjam of consolidated wealth and fair as flat tax is regressive...the other option is for the poor masses to just come and take it from the wealth class...btw,,,who coined the term 'capitalism',,,betcha don't know.?
That is sort of what happened with the French Revolution. Not so much that they were on capitalism, but the poor got fed up with the rich living the life of luxury while they lived in squalor, and, having numerical superiority, they basically had had enough and took it by force. Right or wrong, if the system gets TOO out of whack you're never going to wave any amount of law books at an angry mob that outnumbers you hundreds of times over and proclaim that what you have isn't theirs. There is a point when they'll take it, because their situation has become so dire that the status quo doesn't offer them anything.
With that in mind, Capitalism works great when you have a strong and thriving middle class. The more out of balance that gets, the uglier it gets. Sadly, over longer lengths of time it tends to diverge into a class of ultra-rich and the middle-class and lower class starts to merge down at the bottom. When that happens the system is out of whack. It needs shaking up and "rebooting" from time to time to stay efficient, ergo the whole "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. " quote from Jefferson (Jefferson really was on top of his game
).
I did hear an interesting idea on a podcast today though. Wasn't really a full thought out plan, more just a thought someone had, and I'm sure there are a million reasons why it wouldn't work, but it was interesting to me.
The thought was simply this: we go to flat rate taxing (and at a fairly heavy rate), but only on UNSPENT income at the end of the year. Naturally you have to buy the necessities of life so by the fact that you're spending money on them, you're not taxed on them. The rich can still enjoy a higher quality of life and be tax free on their purchases. What it would instead tax, is the hoarding of money. Super-rich people hoarding more money than they can ever possibly spend (and hence taking it out of the economy forever) do a lot towards creating that aforementioned wealth gap, so under this idea excess unspent income would get hit with a heavy tax at the end of the year. The basic thought was to ensure a healthy and continuous flow of money into the economy (hoping that people would spend now, rather than later, in order to avoid extra tax burdens on the money they make at the end of the year).
Like I said, I'm sure there are many problems with it, but it did pique my curiosity.