The country of Marxland has the following income tax and social insurance system.?

Each citizen’s income is taxed at an average tax rate of 100%. A social insurance system then provides transfers to each citizen such that each citizen’s after-tax income is exactly equal. That is, each citizen gets (through a government transfer payment) an equal share of the Income Tax revenue.

What is the incentive for one individual citizen to work and earn income?

What will the total tax revenue in Marxland be?

What will be the after-tax income (including the transfer payment) for each citizen?

Do you think such a tax system that creates perfect equality will work?

This is a question asking to justify coomunism and it just doesnt work on so many levels. There really is no incentive for people to work. The goals of personal achievement have been completely removed in this scenario as have any incentive for technological advancement and innovation. There is simply no reward for risk taking.

The total tax revenue would be a percentage of the gross revenue of the country, so in the beginning it would be 100% of gross domestic product, however, once people understood that they would receive the same benefit for sitting on their bums as they would for actually producing something then this economic system would soon crash and would then become 0%.

Again, this would be a percentage of the revenues or GDP and once the system crashed which is inevitable then it would go to 0.

This system is completely flawed from the beginning and there is no equality in the system. If everyone is granted the same compensation regardless of their input into the system then that is inherently unfair.

3 thoughts on “The country of Marxland has the following income tax and social insurance system.?

  1. This is a question asking to justify coomunism and it just doesnt work on so many levels. There really is no incentive for people to work. The goals of personal achievement have been completely removed in this scenario as have any incentive for technological advancement and innovation. There is simply no reward for risk taking.

    The total tax revenue would be a percentage of the gross revenue of the country, so in the beginning it would be 100% of gross domestic product, however, once people understood that they would receive the same benefit for sitting on their bums as they would for actually producing something then this economic system would soon crash and would then become 0%.

    Again, this would be a percentage of the revenues or GDP and once the system crashed which is inevitable then it would go to 0.

    This system is completely flawed from the beginning and there is no equality in the system. If everyone is granted the same compensation regardless of their input into the system then that is inherently unfair.
    References :

  2. Have you ever been to the post Office??
    Notice how they all stand around, they aren’t very customer friendly, and show no incentive to work hard ……

    thats marxism! they get paid no matter if one letter or one thousand letters are sent out ….

    competition is what drove the American Economy to lead the world, and taxes are killing it!

    Support the Fair Tax and help right America’s economy!
    References :

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