• Katana314@lemmy.world
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    1 year ago

    Income tax, as far as I know, came as a replacement for basic “per-person federal tax”. It has the nice effect of not extracting money from anyone not making money, and also makes it harder to circumvent basic lump end-of-year taxation.

    • TWeaK@lemm.ee
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      1 year ago

      Taxing capital gains better wouldn’t tax people not making money, either, however it has the advantage of not taxing people who are already giving up the most valuable thing in service: time.