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This is the correct answer, I don't know why you're being downvoted. This would cause people to either (a) leave the country or (b) work until they made their 3
by wallawe 9y ago
This is the correct answer, I don't know why you're being downvoted. This would cause people to either (a) leave the country or (b) work until they made their 395k and then stop working for the year.
It's actually quite terrifying that people would advocate for taking up to 90% of someone's income. We need to work on solving inequality but this simply isn't the answer.
Edit: It's also important to remember that taking more money away from the rich, and feeding it into an already broken and inefficient system (our government) does not equate to lifting people out of poverty.
- osteele 9y ago"It's actually quite terrifying that people would advocate for taking up to 90% of someone's income." Interestingly, the top U.S. tax rate from 1951–1963 was >90%, and it was >50% during the half-century from 1932–1986 – https://en.wikipedia.org/wiki/Income_tax_in_the_United_States#History_of_top_rates https://en.wikipedia.org/wiki/Income_tax_in_the_United_State...
- coredog64 9y agoAnd, due to deductions, literally no one paid that rate. Realized tax rate was lower, combined with a bunch of dead weight losses as people optimized for tax avoidance.
- mathiasben 9y agoyes, very few paid the top rate. but that's the point, the excess income was being thrust back into the economy, driving innovation and creating jobs not just languishing in someone's bank account.
- WalterBright 9y ago> thrust back into the economy This is another variation on the "rich people hoard cash" theory, which is completely false. Rich people invest all of their money back into the economy. Even bank deposits are invested back into the economy (when the bank loans it out). Scrooge McDuck cash vaults do not exist.
- mathiasben 9y ago"Rich people invest all of their money back into the economy" - if it really worked like that we wouldn't be discussing inequality.
- WalterBright 9y agoI'm curious where you think their money is.
- mathiasben 9y agoinvested in siloed low risk fixed income vehicles ensuring that the funds don't circulate through the broader economy.
- WalterBright 9y agoThe reason fixed income vehicles pay out income is because those funds are spent on productive investments. So, they do circulate through the broader economy. There's no silo of cash sitting somewhere paying dividends.
- ericd 9y agoLow risk fixed income doesn't currently keep up with inflation.
- 9y ago
- ams6110 9y ago> languishing in someone's bank account Money in bank accounts is loaned to others and "thrust back" into the economy. Money in other investments (stocks, bonds) also funds economic activity. Your argument only makes sense if the wealthy are hoarding cash under their mattresses, which is not what they do.