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To tax the larger incomes at a higher percentage than the smaller, is to lay a tax on industry and economy; to impose a penalty on people for having worked harder and saved more than their neighbors.
John Stuart Mill
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Interpretation

What this quote means

Higher taxes on larger incomes can discourage hard work and saving.

This quote by John Stuart Mill warns against implementing a progressive tax system that penalizes those who earn more due to their hard work and financial prudence. Mill argues that taxing larger incomes at higher rates discourages people from being industrious and frugal, suggesting that it creates a disincentive for individuals to strive for economic success.

Themes

TaxationIncomeEconomyIndustryWorkPenalty

In practice

Example use cases

During a political debate about justice in taxation, one could introduce this quote to argue against disadvantageous tax policies.

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There should be perfect freedom, legal and social, to do the action and stand the consequences. It would be a great misunderstanding of this doctrine to suppose that it is one of selfish indifference, which pretends that human beings have no business with each other's conduct in life, and that they should not concern themselves about the well-doing or well-being of one another, unless their own interest is involved.
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Political Economy, in truth, has never pretended to give advice to mankind with no lights but its own; though people who knew nothing but political economy (and therefore knew it ill) have taken upon themselves to advise, and could only do so by such lights as they had.
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Quote by John Stuart Mill | QuoteProject