Quote Originally Posted by bu villain View Post
I was reading the well known Armchair Economist this past weekend and wanted to pose a question discussed in the book.

Given a two person town where both people have equal access to a well. Person A makes $10,000/yr and is taxed $1000/yr for use of the well (10% taxation). Person B makes $100,000/yr and is taxed $5000/yr for use of the well (5% taxation). Is this taxation policy unfair and if so, who is it unfair to? Please also include your political leaning.
Define FAIR.

No it is not fair that someone pays 10% in the lower income bracket than someone in the higher bracket (5%). but, you dont want to penalize success either.

Im assuming you mean that both people are taxed on INCOME only, and you arent mixing things like Capital Gains :P