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Yeah that sounds reasonable. I think you're totally right honestly. I think the hardest part of the problem is that everyone's talking in circles rather than ge
by iamcasen 9y ago
Yeah that sounds reasonable. I think you're totally right honestly. I think the hardest part of the problem is that everyone's talking in circles rather than getting to the root of the problem. "Tax the rich" is a vague and easy talking point, but it doesn't get at the true nature of things. What amount of wealth is rich? How did they earn it? How are they currently taxed? etc.
From my experience, it feels like there are so many pitfalls and financial traps designed to catch people moving from the middle class on up. Once you make it to 10 Million +, you can coast from there with no financial burdens, but until then there is always something to get you.
- gt_ 9y agoCan you point me to the downhill path to middle class?
- iamcasen 9y agoAMT for one. If you get a sudden windfall in the form of stock options, the IRS requires you pay tax UP FRONT for the full amount. Even if those stocks are not liquid at all. So say you worked at google in the early days and spent 10k of your savings to exercise your stock options. Those stocks are worth 100 million dollars, but google is a private company and you are still uncertain of it's future. The IRS will demand you pay tax on 100 million dollars right that minute. Obviously, this would be impossible since you cannot sell your stock, and it's value is only based on speculative appraisals. Say you somehow got a loan to pay that tax up front. Say the tax was 20 million dollars. Then google goes belly up and your stock becomes worthless. Too bad so sad! You are on the hook for paying back that 20 million dollars.