i was not referring to the system to be flawed but the initial thesis in the posting. it takes 10 people or so and equals each to a certain income. so you have a society of 10/10ths where each income bracket makes up 10%. you have 4/10ths of people "getting a free ride" and 1/10th who pay over half of the bill due to their level of taxation. this does simply not correlate with reality. 40% are not welfare recieving bums and 10% are not super rich. it blows up the two extremists of society to prove whatever point the author tried to make(tax cuts for the rich are good for everyone).
"Firstly,the system doesn't seem to be ''flawed'' given the level of prosperity that US citizens enjoy"
a few thoughts to kick around:
In 1960 CEOs received 40 times the average worker's salary. In 1992 they received 157 times.
Amount of every earned dollar paid in taxes by citizens 1990: 13 cents
Amount of every earned dollar paid in taxes by citizens 1997: 15 cents
Amount of every earned dollar paid in taxes by corporations 1990: 26 cents
Amount of every earned dollar paid in taxes by corporations 1997: 20 cents
[New York Times]
In the late 1970s, the top one percent of the US population held 13 percent of the wealth; in 1995 it held 38 percent. (Levy, Frank. The New Dollars and Dreams ).
One percent of the U.S. population owns sixty percent of the stock and forty percent of the total wealth. (Hawken, Paul, The Ecology of Commerce: A Declaration of Sustainability. New York: HarperBusiness, 1993).
there are many factors to this, and there is one theoretically viable solution (however lobby groups would NEVER EVER allow it to pass through any legislation since it would ruin their cashcow scheme) and that would be the so called "tobin tax".
prevent multinational cooperations to move their money to where they dont pay taxes.
here is a brief background from http://www.ceedweb.org/iirp/factsheet.htm
, just google on it for other sources:
What are Tobin Taxes?
They are simple sales taxes on currency trades across borders. The original proposal came from James Tobin, Ph.D., a Nobel laureate economist at Yale, but economists have since refined his approach. Tobin Taxes can be enacted domestically by national legislatures, but will require multilateral cooperation to be effectively enforced... Political will for passage is the major obstacle to be overcome, by citizen mobilization...
The proposal is important due to its potential to prevent financial crises. Also, the estimated $100 - $300 billion per year makes it possible to meet urgent global priorities, such as preventing global warming, disease, and poverty. Help turn the tide towards global solutions in the 21st century...
How Tobin-style Taxes would work:
Currency speculators trade over $1.8 trillion dollars each day across borders. The market is huge, and volatile.
Each trade would be taxed at 0.1 to 0.25 percent of volume (about 10 to 25 cents per hundred dollars)
This would discourage short-term currency trades,about 90 percent speculative, but leave long-term productive investments intact.
The currency market would thus shrink in volume, helping to restore national economic autonomy. Nations again could intervene effectively to protect their own currency from devaluation and financial crisis.
Billions in revenue, estimated at $100 - $300 billion per year, would be generated.
Revenue could go into earmarked trust funds to fund urgent international priorities.