Labor Taxation

Context:
- It can (typically) be applied to wages, salaries, and other forms of compensation individuals receive for their labor.
- It can (often) include various forms of income taxes, social security taxes, and Medicare taxes in many jurisdictions.
- It can be progressive, meaning the tax rate increases as the taxable income amount increases.
- It can include payroll taxes, usually shared between employers and employees.
- It can be a major source of revenue for governments to fund public services and infrastructure.
- It can be subject to debates and reforms, focusing on issues like equity, efficiency, and the impact on labor supply and employment.
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Example(s):
- The United States Federal Income Tax, which taxes individuals' wages and salaries.
- The Social Security Tax in the United States, which funds the Social Security program.
- The Medicare Tax, also in the United States, which helps to fund the Medicare program.
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Counter-Example(s):
- Capital Taxation, which taxes income from capital such as dividends, interest, and capital gains.
- Consumption Tax, such as sales tax or value-added tax (VAT), which taxes the consumption of goods and services.
See: Capital Taxation.

References

(Altman, 2021) ⇒ Sam Altman. (2021). “Moore's Law for Everything.” In: Blogpost. March 16, 2021 Journal.
- NOTES:
  - **Capitalism and Economic Inclusivity**: The post argues for a version of capitalism that ensures growth and inclusivity, suggesting a shift from taxing labor to taxing capital. The idea is to make capitalism work for everyone by distributing a portion of the wealth generated by AI and technology directly to citizens.
  - **The American Equity Fund Proposal**: Altman proposes the creation of the American Equity Fund, funded by taxes on company valuation and privately-held land. This fund would annually distribute its proceeds to all citizens, aiming to reduce poverty and increase economic self-determination and participation in societal gains.