[extropy-chat] [SALT] The DEpopulation Problem, this Friday (for forwarding)

Mike Lorrey mlorrey at yahoo.com
Thu Aug 12 20:14:51 UTC 2004


--- Brian Lee <brian_a_lee at hotmail.com> wrote:

> In the US, the tax burden decreases with each additional child. So 
> theoretically, the higher the local tax burden, the greater the tax 
> incentive would be to have children (as the deductions would be more 
> valuable).

The problem with this logic is that income does not increase with each
additional child, so for a given income, there is a maximum tolerable
number of children. The more income that gets taken in taxes, the fewer
this number is. If a four child family with zero taxes gets a tax
increase to 25% of income, that family can afford three children. At
50% they could afford two, and one at 75% tax burden.

Furthermore, it can also be said that the tax burden DOESN'T decrease
proportionately to the incremental cost of raising each child. If the
per child deduction does not meet or exceed the per child rearing cost,
there is an increasing tax burden per child.

Finally, the per child tax deduction only applies to income taxes.
Child related consumption causes sales tax payments, and each child's
bedroom in a home increases property tax payments. My theory deals with
the whole tax burden, not just income taxes.

=====
Mike Lorrey
Chairman, Free Town Land Development
"Necessity is the plea for every infringement of human freedom.
It is the argument of tyrants; it is the creed of slaves."
                                         -William Pitt (1759-1806) 
Blog: http://www.xanga.com/home.aspx?user=Sadomikeyism


		
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