What is the proper rate for income tax?

Ask yourself, what is the reason why the income tax rate is at 22% or 40% or whatever it is currently at?

The answer to that question today, is that income tax is set at a rate by politicians which they believe will get them re-elected.

The proper answer to that question, is that income taxes should be set at the rate necessary to pay for the services that we have agreed are appropriate for our society. If we decide to spend more then income taxes will have to be higher, and if we decide to spend less then income taxes can be lowered accordingly.

LIFE will set income taxes at the rate necessary to pay for the wellfair services, and that is a simple and straightforward relationship that everybody can understand. And because everybody pays income taxes on all of their income, everybody has an interest in this balance.

The basic rate necessary to pay for the wellfair services as they exist today is 25%, an additional 5% is required to cover the cost of pensions.

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