Exploring Taxation: Objections to Progressive Taxation

With the passage of the Tax Cut and Job's Act, US Income Tax is going to become a little less progressive. The Left sees this as a negative, but in fact I think it a positive development. Over the course of the next month, I will be making the case against progressive taxation, and demonstrating the merits of a flat tax.

In The Constitution of Liberty, Hayak makes the case against progressive taxation. In this post, I wish to provide a brief summary of those objections. Over the coming days and weeks, I hope to explore each objection in greater depth and connect it to the current debate.

1. Progressive Taxation allows a majority to impose a discriminatory tax burden on a minority. 

2. Progressive Taxation violates the basic principle of equal pay for equal work.

3. Progressive Taxation distorts incentives for an entire class of people merely because--for one reason or another--their incomes are not in line with those of the majority. 

We will explore all these objections and more in the weeks to come.