Originally Posted by
Trader
There had been talk of a remittance tax over the last several years which would tax money exchange and transfers.
The big advantage to the income tax over remittance tax is that it is more even, collects more money and they can easily have a threshold where if you fall below it you pay no tax (or a smaller percentage) so that you don't hit the lower paid workers as hard (or at all).
Social justice v market forces.
The reason the low paid are low paid, amongst others, is that they are easily replaced.
The reason the better paid are better paid, amongst others, is that their skill sets are in demand and they are not so easily replaced.
If they drive down disposable income by any means whatsoever, market forces will prevail.