Let's play: Name that Tax Cut!

[A18]

1. Is this a tax cut [mostly] for the rich?

--Upper Class 01
----40% tax
--Middle Class 01
----15% tax
--Lower Class 01
----10% tax

All that raises $1,000,000. Now let's say someone decides to cut the budget to 10% of its former size, so now government only needs $100,000.

Now let's lower the tax burden on these citizens to 10% of the former size.

--Upper Class 01
----4.0% tax
--Middle Class 01
----1.5% tax
--Lower Class 01
----1.0% tax

2. Is this a tax cut [mostly] for the rich?

--Upper Class 01
----40% tax
--Middle Class 01
----15% tax
--Lower Class 01
----10% tax

Again, all that raises $1,000,000. Now let's say someone decides to cut the budget to 10% of its former size, so now government only needs $100,000.

Now let's lower the tax burden on these citizens to 10% of the former size. THIS TIME, the legislature decides to cut each tax rate by 15 points...but the lower class only pays 10%, so they just make it 0 rather than paying these people money.

--Upper Class 01
----25% tax
--Middle Class 01
----0% tax
--Lower Class 01
----0% tax

So are the poor exploited?

3. Is this a tax INCREASE on [mostly] the rich?

--Upper Class 01
----4.0% tax
--Middle Class 01
----1.5% tax
--Lower Class 01
----1.0% tax

This time, all that only raises $100,000. Now let's say someone decides to increase the budget to 1,000% of its former size, so now government needs $1,000,000.

They increase taxes proportionally.

--Upper Class 01
----40% tax
--Middle Class 01
----15% tax
--Lower Class 01
----10% tax

Now some poor people walk around happy. After all, their taxes only went up 9 points! The rich are paying 36 points more!

YAY!! PROGRESSIVE TAXATION!!

Are they right?

[A18]

01 = 0ut of 1ncome

Stupid abbreviation, just ignore it

[Lunar]

How do you define "upper class?"

[A18]

Why should it matter? It's a tax rate that each person in that group pays.

For example, it could be the top 90% or the top 1%. Make your choice.

[b_rules]

it depends on the distribution of income.  unless you can define a curve with both the income distribution and your arbitrary class cutoffs, it is impossible to answer the question in an intelligent manner.

[A18]

Wrong. And that's impressive, seeing as it wasn't one of the answers.