It's arbitrary because it picks a number out of thin air and assumes that people and businesses earning anything above that arbitrary figure are "wealthy." Why should a hard working family in a high cost of living area have to pay higher taxes to support some welfare tax refund? A person making $50,000 a year with a family isn’t necessarily working any harder than a person making $250,00 with a family.
Progressive taxation is predicated on the notion that those with the ability to pay more as they earn more do so. That's not arbitrary. Basing a tax code on the ability to pay sounds pretty damn rational and delineated to me...not arbitrary at all.
I would prefer that everyone who pays taxes receive tax relief.
Everyone that works does pay taxes--Payroll taxes. When one concentrates only on the income tax that's not true. We're you opposed to the Bush tax cut of 2001 b/c the highest income bracket got much more out of the tax cut than they put in...
(it was disproportional)?
Taking from high wage earners and giving to low wage earners is punishment. It discourages success. It discourages hard work and high achievement. It gives people something for nothing. It punishes small business, which is the backbone of our economy.
How do you know progressive taxation discourages success. In the 1950s, the top marginal tax rate was 91%. The US enjoyed its highest standard of living in that decade. How could that be if businesses were discouraged?
If people in the top tax bracket don't want to pay that tax on the dollars in that bracket, they are welcomed to earn less and get the hell out of the way of more 'hungry' people looking to earn top bracket dollars. The free market at work my friend. If you don't want it, someone else will take it.
I have never said I favor "unmoderated pure capitalism." I think the market should be regulated. What I oppose is raising anyone's taxes, particularly when raising those taxes is fund some federal government program. Haven't you noticed how bad the federal government is at managing our money?
That depends. If you're talking Social Security, then gov puts all like private enterprise to shame. If you're taking about a bridge to nowhere or an illegal invasion/occupation of Iraq, then I would agree with you.
Also, what doesn't get talked about enough is raising taxes on business punishes everyone. Increased cost of goods and services are passed along to consumers. We raised the general excise tax here a few years ago and businesses just passed those increased taxes on to us.
I have no problem with this at all. It's like insurance. The costs of government via business tax is spread around the population....sort of like insurance.