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Your points are really interesting. I wonder how successful it would be to tax higher wage earners more. Many of the truly wealthy receive their money via means
by lesserroneous 8y ago
Your points are really interesting. I wonder how successful it would be to tax higher wage earners more. Many of the truly wealthy receive their money via means that are largely not subject to payroll taxes. Hence, we are only over taxing the upper "working class" who then might have less incentive for their high wages. Many higher wage earners and their employers are finding clever ways to avoid salary increases through the conferral of non-cash benefits. Though these are technically required to be taxed by reporting them to the IRS, I would bet many people aren't reporting the vacation their company sponsored or their gym memberships. Additionally, many contractors form corps and are using creative ways to reduce their payroll burden (among other tax relief.) The current wage cap is around $118k. What kind of cap do you think would be effective? Or are you saying we should remove caps?