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Because it hurts the economy. As I said previously, confiscatory high tax rates just result in politically connected groups getting tax breaks, lots of money s
by opo 8y ago
Because it hurts the economy. As I said previously, confiscatory high tax rates just result in politically connected groups getting tax breaks, lots of money spent in less productive ways to avoid the high rates and if those can't be done you get dead weight losses from economic activity that isn't done. There is a reason countries moved away from confiscatory high rates.
- CPLX 8y agoSome countries have some haven't. The top marginal tax rate in Denmark is over 60% I've been there, it's awesome, everything works super great, and the country consistently ranks as the happiest population on the planet. They also have a great economy. Meanwhile I've lived in the US for almost five decades and watched as the billionaire class has lobbied successfully for lower taxes, offshoring, financialization of everything, and criminalization of debt, leading to vast swaths of the country condemned to permanent economic misery, increased xenophobia and political instability, declining standards of healthcare, and an out of control problem of education debt for the next generation.
- opo 8y agoA difference is that the US is a much more progressive tax system, - the tax rates in Denmark are much flatter. This gives Denmark much more income from taxes per person. So far none of the politicians in the US arguing for very high rates in the US are arguing that the bulk of the country should pay them.