For sake of fairness higher taxes should be paid by INDIVIDUALS with high incomes.
Take a look at Hong Kong's tax code.
All levels of people there find it fair.
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Posted 07 October 2013 - 08:00 PM
Interest is nothing but a measure of depreciation of money against time and depleting resources.
If there is an economic boom with many opportunities, giving your money away to someone should have more opportunity cost. If there isn't a boom, giving your money away to somebody should cover at least its depreciation because the resources are depleting regardless of an economic boom or not, but it will have obviously less cost (in interest).
The debt system is not wrong. However, when the govt bails out trillions of bad debt with the economic output, it is wrong. Nobody's private risk taking should be covered by the govt, or people's money. But the banks are simply treated as the privileged entities, and yet they don't belong to people, even though they are wholly subsidized by the govt, or people. This is what's wrong.
Its wrong if the interest charged exceeds the economic growth, this is especially exacerbated under a fractional reserve system, most importantly, when there are no limits on debt based currency creation. When there was a limit (gold), there was a cycle of inflation and deflation that not only negated inflation, it bled off debt. This in itself led to periodic hardship, and if currency is managed well, it is unnecessary.