Skip to main content

The poorest contribute the most to society! (Yeah, right!)

In a Dutch program about useless jobs and money and new politics, there was a woman who said that the richest contribute the most in a country.
I'm so sick of that argument and the fact that nobody seems to be able to give the counterargument to that, that I will give one here, in numbers no less!

So, let's take a rich and a poor person. The rich person earns ten times as much as the poor person. And lets assume that the average tax income for that level of rich is 40% and that level of poor 5%.

Rich person earns €12.000 per month.
Tax: 40%
Money to state:  € 4.800

Poor person earns € 1.200 per month.
Tax 5%
Money to state:  €60

So, clearly, the rich contribute much more than the poor! 
Wrong!  Why? Let's take a look from the standpoint of the persons and let's not forget about how much is needed to survive or rather live a "minimal-normal" life.

To have a normal life with not too much problems (food, shelter, cellular, etc..) I throw an amount in there, let's say €1.100. That's the amount needed to survive and with a little bit of comfort (let's make it reasonable).

Let's recalculate from the standpoint of persons.
Rich person's extra = comfort money = €12.000 - € 1.100 = € 10.900
Money he paid to state: €4.800 (see above)
Percentage that is of his comfort = € 4.800 / € 10.900 = 43%

Poor person's extra = comfort money = €1.200 - € 1.100 = €100
Money he paid to state: €60 (see above)
Percentage that is of his comfort = € 60 / €100 = 60%

In other words the poor person actually pays 60% of the money that's left after surviving and the rich person only 43%.

Let's not forget that shifting the incomes will give the state about the same in total (a bit less though), but people will also be more happy (or well-being, however general you want this) and healthy and the state will have to pay less in health amongst others.  Not mentioning the new ideas and motivation these "lower-end" persons will have and thus the value of products and services improved! 
This is something economics never calculate, because there is no valuta for motivation and well-being or these are all so volatile and open-ending.  But most politicians don't ever realize this.

The counterargument to this saying that rich persons buy more and thus give more VAT to the state is also not valid.  But I'm too frustrated to counter that one now. But in short: if you divide the incomes more equally the total sum of buying power stays the same. It justs shifts.
As a matter of fact there will be more things bought than if a rich person has more, since he has so much his interest in buying is much less. A poor person will relatively buy more with a relative increase in income that a rich person ever would.  (He will put it into savings, matras money, useless / over-buying that contributes less to happiness, ..)

In my eyes the only problem remaining is the pressure of international weights. If not a lot of countries will shift the same, there might be inter-countries inbalances, but I'm not sure if happier people would mind that.

Comments

Popular posts from this blog

Doctors!!!

Another one of those problems out here that I have found more and more compelling as well as frustrating in my life as well as for the whole world is that doctors of today seem not really concerned with their patients anymore, when practicing their profession rather focusing on symptom treatment and "pills" (so to speak) than the causes and real health or well being of the patient. Also that they are weigh too much focused on the money they " deserve " and the competition ( do I smell another form of my favorite word conformism in the latter? ). I have had a lot of discussions with some medicine students (not coincidently), and though I thought a lot of them wouldn't come out for it, I was surprised to learn that a lot of them dó admit that (the promise of) money is a big part in their decision to study medicines!! Of course it's not merely doctors, but the whole health care institution that is becoming more and more of a profiting "machine&qu

The Four Ages of Man

Pilar, a new friend, has revived the ever lasting poem in me brain.  It remains there partly because of a disastrous trial of mine once, to improve my memory.   But it's a nice piece nevertheless. It's a poem that struck me as being simple, sooo true, yet ironic (or even sarcastic) in only 8 lines of text!!    Here it is:   The Four Ages of Man Yeats He with body waged a fight, But body won; it walks upright.   Then he struggled with the heart; Innocence and peace depart.   Then he struggled with the mind; His proud heart he left behind.   Now his wars on God begin; At stroke of midnight God shall win. Amazing is that I could as well project it on the life of á man as well as on the life of all mankind (through evolution and with the apocalypse at the end). Euh, no ... I do not believe in God, nor do I disbeleive It/Him/Her!!  I am just happy without needing to decide on it.

Basics of equality

I have had this idea for as long as I can remember, but only lately it has taken some form in thoughts & words. Though it needs a lot of fixing -aren't words so limited ?- Now I am putting it here to release it so it won't occupy my thoughts so much. Also, maybe someone can learn from this, though I doubt it isn't said already somewhere else and I doubt my blog is read by many people. (Pride is my everlasting burdon too.) Basics of equality : Actually, it's so easy, but probably also so "against one's individuality and pride" that it is so difficult to learn and live by it, if not completely subjectivily rejected by one's mind at first sight!! So, please open your mind before reading on. You see, what makes a person ? Well, it's simple actually, man equals DNA (body, looks, behavior, ..) + life experience (education, accidents, confrontations, luck!, .. ; though isn't luck , or rather: chance, what life experience is the result