Oh my goodness you have this totally bass ackwards! Those who pay the most in taxes benefit the LEAST from the system
The system is the capitalist system. So, per definition, those at the top of that system benefit most from it. Now, I constantly see conservatives complain about how much taxes is paid by the rich as a percentage of total federal income tax. So why is that so? Is it because the rich pay a high percentage of their own income? No. It’s because their pretax income is so much higher (10% of 10 million is more than 50% of 1 million). Notice the difference. In the most highly taxed countries in western Europe, the rich pay a higher percentage of their own income in taxes, but they also pay a lower percentage of total income tax. Why? Because their pretax-income is substantially lower. So, clearly, that statistic is meaningless if you’re trying to figure out if someone is undertaxed. What you need to look at is what they pay as a percentage of their own income. Here you will see the relevant and interesting inequality.
Now, I think a better solution would be to lower pretax income for high earners. They don’t need actually need the money. But this is largely an issue of societal acceptance. If people think those high salaries are fair, there will be no change. So first we need to tackle why that is. It seems people actually think salaries in a capitalist system reflects fairness. Can this be refuted? Yes. First, let’s establish a prerequisite for someone deserving something. I say that you cannot deserve what is outside your control. So if a person happened to have rich parents, he didn’t deserve it. He got lucky. This is uncontroversial to say, but it turns out that this is the case about a lot of things.
A modern capitalist system rewards certain properties, and whether or not someone has those properties are in large part outside their control. No one chooses their genes. No one chooses their parents or their environment growing up. But these two factors (genes and environment) constitute the essential variables of personal development in childhood. As a result, your personality is in large part a function of those two variables. Variables you didn’t choose and had no control over.
You will notice that the above is an argument against meritocracy, so it already concedes that our capitalist system is a meritocracy. But we know that it isn’t. In a meritocracy, two people with similar intelligence, willpower and every other property valued by the system, would have the exact same chance of making it. This is not the case in the capitalist society. For example, if your parents are poor, you have less of a chance to get a good education. And even if you get into a great college, your tend to have less contacts in high places, and as a result tend to get paid less. I remember reading a very interesting study about this a couple of years ago, where they looked at the economic background of people taking the same degree at the same college. The best predictor of future income was not grades – it was the economic status of your parents. If that is not disheartening, I don’t what is.
So we can tell each other fantasy-stories and convince ourselves of our own greatness, but in a very basic sense a financially successful person is a lucky person, and he should never forget it. If he does forget, he runs the risk of hubris and thinking it’s all his own doing. Jesus told us to be humble, so be humble. Is it necessary to get paid 10 million dollars at Goldman Sachs, or can one slash that salary if it frees up money to pay some single mothers at Walmart a living wage? I’m not saying we pay bankers 20 000 dollars a year. We all recognize the need for some economic incentive. The question is if 10 million is necessary. It’s not, and it’s certainly got nothing to do with morality or being fair.
The very government programs you seem to laud are the real cause, particularly in Europe. Does it occur to you that the countries with the largest and most bloated government social programs are in the worst financial shape?
Untrue. The largest and most bloated governments are found in northern Europe. Those countries are arguably in the best financial shape.