Flat tax means a constant percentage of your income goes to the state, regardless of how much income you make.
Correct.
Progressive tax means people with a higher income pay a higher percentage of their income in taxes.
Correct.
Regressive tax means people with a lower income pay a higher percentage of their income in taxes.
Not that simple. This is only true at some point within various levels of income, and in the real world, exemptions can be made, beginning at certain income levels, to prevent such regressivity from occurring.
In the United States, income tax is generally progressive (depending upon how much of your money is in capital gains). Payroll tax, sales tax, and property tax are regressive.
Payroll tax is not regressive, it is a progressive tax that increases in
rate as income rises.
The net result is that people with high incomes (like Warren Buffet) generally pay a much smaller percentage of their total income in taxes than people with low incomes (like Warren Buffet’s secretary). In aggregate, the current United States tax system doesn’t soak the rich—it soaks the poor; it is a regressive system.
Pure sophistry. The present U.S. tax system is deeply biased against savings, investment, and entrepreneurship. The problem here is that you have not even begun to scratch the surface of the taxes the rich, corporations, and, most importantly, small business actually pay, and the high walls and barriers to entrance into the marketplace presented by the American tax system. High corporate, capital gains, dividend, and estate taxes are only the surface of the iceberg.
The fact of the matter is that, while certain individual rich people like Buffet may pay a smaller relative share of personal income in taxes, in the aggregate the rich are paying virtually the entire tax burden, and "the rich" includes countless small businesses who file taxes as individuals.
The breakdown looks like this:
The top 1% 36.73% of all income tax
The top 5% pays 58.66%
The top 10% 70.47%
The top 25% pays 87.30%
The top 50% 97.75%
Despite what Warren Buffet may pay in personal disposable income, the reality is that most profits from productive industries and businesses are plowed back into the business, after taxes and overhead, the largest fraction of which is payroll. High, progressive, multilayered taxes that tax the same dollars over and over again each time any attempt is made to use them to create further wealth affects and influences the incentives to work, save, and invest, and hence deeply influences the creation of jobs and entrepreneurial opportunity (and hence, economic growth).
Do you think a system where the poor pay a higher percentage of their total income in taxes than the rich do is in harmony with the gospel of Jesus Christ?
I think a system in which someone who makes $10,000 a year contributes $1,000 to the social safety net and services that aids and helps support him is reasonable, and which takes $10,000,000 from someone who makes $100,000,000 more reasonable still.
The progressivity of the present income and payroll tax system has no rational basis from an economic or moral standpoint. Its major symbolic purpose, especially as marginal rates soared during the Roosevelt years, is as a sop to populist class warfare sentiments in the general population and as a means of controlling and manipulating business and economic activity generally. Empirically, we know historically that high rates discourage productive economic activity and wealth creation, and actually decrease government revenue over the long term.
The real meaning of progressive taxes, as Marx well understood, was to create a vast class of citizens ultimately dependent upon other citizens, through the mediation of the state, for their sustenance, and to create in that vast cohort of citizens an inherent bias against limited government and personal responsibility for economic well being. It is to create, in other words, a massive constituency with an inherent stake in the endless and open ended expansion in the size and scope of government.
The engine of state power is confiscated private wealth, and the United States tax code is the foremost engine of social engineering in the modern interventionist nanny state. Progressive taxation isn't about money so much as about control of human behavior through control of property and economic resources.
The death tax brings in very little income, and yet its abolition is resisted tooth, claw, and stinger by the Left because through it, they are able to destroy the control of private property by private individuals as it is passed from parents to children. It is taking
control of wealth away from private individuals that is all important here, not the quantity per se.