Earlier quoted context omitted.
>I do not understand how people can not understand that a percentage tax, by it's definition, does have the largest companies pay more. They don't understand it because it isn't true on a proportional basis (and in some cases on an absolute dollar value basis, too). Larger companies have access to tax avoidance strategies which are unavailable to smaller companies[1] which substantially changes the calculus. I've gon…
Why is that important? I have two taxpayers, Roy the rich ($1000 / month) and Peter the poor ($100 / month). Today we will have a 10% flat tax. Peter pays $10. Roy pays $100. The total tax take is $110 and Roy is paying 91% of it. If we imagine a 'comfortable' lifestyle costs $200/month then there is an argument against using this flat tax system, but it is difficult to escape from the fact that Roy is doing almost a…
Society as a whole benefits from Peter the poor paying proportionally less in taxes because Roy the rich simply does not consume the same proportion of his income (let's keep in mind, that in real life, Roy is 100,000 times richer than Pete, not 10x). Taxing Roy proportionately more is not only the ethical thing to do, but also the rational thing to do if you want a strong economy.
These policies aren't about what you find fair, they're in place because they are what make society prosperous.