drz-400
DP Veteran
- Joined
- Oct 12, 2009
- Messages
- 2,357
- Reaction score
- 551
- Location
- North Dakota
- Gender
- Male
- Political Leaning
- Conservative
I have noticed that some poeple, from my observation they are typically more partisan republicans, put forth two tax policies with justifications I feel are contradictory. Let me explain.
The first position goes as follows:
During a recession taxes should be lowered, to stimulate the economy.
The second position:
The flat tax is a more fair and equitable tax.
Lets inspect the first argument. What is being said? When an economy is in recession, by definition this means the GDP is falling. If GDP is falling, this means that by definition income is falling. So the argument goes, if income falls, taxes should be lowered to increase the disposable income in the economy, which will in turn be spent, invested, etc.
With this justification for lower taxes during a recession, why oppose progressive taxation?
The first position goes as follows:
During a recession taxes should be lowered, to stimulate the economy.
The second position:
The flat tax is a more fair and equitable tax.
Lets inspect the first argument. What is being said? When an economy is in recession, by definition this means the GDP is falling. If GDP is falling, this means that by definition income is falling. So the argument goes, if income falls, taxes should be lowered to increase the disposable income in the economy, which will in turn be spent, invested, etc.
With this justification for lower taxes during a recession, why oppose progressive taxation?