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> cannot think of a (sane) negative income tax system that can be described as wealth going from the poor to the rich. Neither can I, but that's because I thin
by gizmo 10y ago
> cannot think of a (sane) negative income tax system that can be described as wealth going from the poor to the rich.
Neither can I, but that's because I think all plans are either (a) mathematically impossible or (b) intended to distribute wealth upwards by dismantling the social welfare state as we know it.
> Sure there is, because a 125[2] of the 240 have a job, those who earn little, might still get some money from tax, those who make medium pay a some tax, those who make a lot, pay a lot of tax. But it will imply more tax on the rich, both income and wealth. (Though nothing ridiculous.)
50% of full time workers in the US earn less than 30,000 a year, so their income would get supplemented to 30k, and they would not make any net tax contribution anymore.
There are 94 million US adults not in the labor force at all (40%), so they too are not contributing to the tax pool.
So out of the 60% remaining US workers 50% earn more than 30,000 a year, so that means 30% of US adults will have to carry the full tax burden, which will be many trillions of dollars larger than today.
NIT would be 7.2 trillion, non-welfare gov't spending is 5 trillion, so government spending would total 12.2 out of 17 trillion GDP = 71% of GDP. So for this to work taxes would have to go up massively (which I support, incidentally, but most people will balk at this).
- ozy 10y agoPerhaps because 30k (your number) is a bit much, as the GDP/C of USA is only 53k. As I said, wealth redistribution is knob, currently set to around 5% (my guess) in the USA. I think 20% should be the aim over time, which translates to ~15k income in some form of UBI, and +15% tax for the rich. That would mean a 30k income for an average 4 person household. "Even with the highest tax bracket at 100% I don't see how it could work." That is entirely lack of imagination on your side ... just add up all the money the top 10% makes. And it must work mathematically, because 30k is lower than average income at 51k.