Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

It’s very, very basic economics - the marginal utility of money decreases, so progressive taxation is better than regressive taxation.


It's basic economics in the sense that it's an oversimplified toy model. In the real world, every country I'm aware of gets a substantial amount of its tax revenue from consumption taxes, and indeed the US's lack of VAT means it's currently much more dependent on progressive income taxes than peer countries. (https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-i...)


I responded to a comment that called progressive taxation a crazy “far left” idea - I’m not sure the second and third order details of taxation policy are really relevant here…

But ok - yes, sure, in real life it’s a mix and the mix is worth debating. Note also that consumption taxes often have exemptions/reductions to offset the most severe regressive effects.




Consider applying for YC's Summer 2026 batch! Applications are open till May 4

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: