Fair taxation?

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It's a bit banal to say that governments need to raise money through taxes in order to pay for the services they provide. There's a principle called 'progressive taxation' which means that the wealthiest people pay a higher proportion in tax.  With income tax, for example, tax is only paid on earnings above a certain threshold, and the rate of tax increases as earnings increase.  The mantra is "put the biggest burden [of tax] on the broadest shoulders".

 

Grab too much tax from the highest earners, however, and three things can happen.  Some of the highest earners might leave the the country, some may be discouraged from earning as much as they can, and some may be prevented from reinvesting their earnings and creating job opportunities for others.

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to be expanded

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