Income tax in capitalist economy or capitalism
We know that capitalism is all about money, the big money. Government wants you to earn big and have unlimited wealth.
How taxes are treated in a capitalist economy? What principals are choosed to implement taxes in a capitalist economy? Who has to bear maximum taxes?
This is a great discussion to get involved. Capitalism is a most practical ideology, socialism has its own drawbacks.
Capitalist economy perform better than socialistic economies. Almost all developed countries are following capitalism and condition in socialistic countries is very depressive.
China is though a communist country but its economical policies are favourin capitalism. We seen high growth in Chinese economy once it mixed capitalims with its political policies.
Taxes are charged high on lower income and low on higher income in country like USA. I think this is a perfect taxing policy for a capitalist economy. Higher taxes on low income encourages to earn more to save tax and this indeed fuels the capitalism ideology.