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On the other hand, top marginal tax rates are a fraction of what they were at their peak last century. We could double tax revenue at the drop of a hat, paying

On the other hand, top marginal tax rates are a fraction of what they were at their peak last century. We could double tax revenue at the drop of a hat, paying down our debt and ameliorating toxic wealth inequality simultaneously.

dpc_pw 7y ago
I agree that in principle the inequality is causing instability and , and as much as I detest socialism, I don't see a peaceful way out of where we are not involving the "tax the wealthy... a lot". Some comments: income taxes are the most stupid taxes ever. Rich people don't have incomes, they have capital gains. Increasing income taxes hurts middle-class: the rich wannabe. We need to abolish income tax, and turn it into asset tax, or at very least increase the capital taxes significantly. Tax people that are already rich, not the ones that are motivated to try to get there! Once they get there - then you can tax them. Having said that - the taxes can't be too high, because people don't like taxes and rich people have plenty of resources to run away with their wealth. So... there's no really easy way to get out of this mess.
- eee_honda 7y ago
  >as much as I detest socialism, I don't see a peaceful way out of where we are not involving the "tax the wealthy... a lot" Socialism != taxing the wealthy a lot. Maybe part of your "hatred" of socialism comes from a misunderstanding of it? I make the suggestion because the rest of your comment pretty much outlines some of the many major problems with unlimited accumulation and concentration of wealth.
bpt3 7y ago
Effective tax rates haven't changed that much over time [0]. Doubling the tax rate on the rich is unlikely to double tax revenue, and could easily decrease income tax revenue. If we want to increase tax revenue to fund our current and future liabilities, the money is almost certainly going to have to come from tax increases on the middle class (who don't pay meaningful amounts of federal income tax for the most part) in the form of a VAT, as almost every other developed nation has already determined. [0] https://taxfoundation.org/taxes-on-the-rich-1950s-not-high/ https://taxfoundation.org/taxes-on-the-rich-1950s-not-high/
turk73 7y ago
Did anyone actually pay those top rates ever? It seems to me that the wealthy had enough brains and resources to avoid ever landing in those absurd 90% tax brackets or whatever they were.

dpc_pw 7y ago

I agree that in principle the inequality is causing instability and , and as much as I detest socialism, I don't see a peaceful way out of where we are not involving the "tax the wealthy... a lot". Some comments: income taxes are the most stupid taxes ever. Rich people don't have incomes, they have capital gains. Increasing income taxes hurts middle-class: the rich wannabe. We need to abolish income tax, and turn it into asset tax, or at very least increase the capital taxes significantly. Tax people that are already rich, not the ones that are motivated to try to get there! Once they get there - then you can tax them. Having said that - the taxes can't be too high, because people don't like taxes and rich people have plenty of resources to run away with their wealth. So... there's no really easy way to get out of this mess.

eee_honda 7y ago
>as much as I detest socialism, I don't see a peaceful way out of where we are not involving the "tax the wealthy... a lot" Socialism != taxing the wealthy a lot. Maybe part of your "hatred" of socialism comes from a misunderstanding of it? I make the suggestion because the rest of your comment pretty much outlines some of the many major problems with unlimited accumulation and concentration of wealth.

bpt3 7y ago

Effective tax rates haven't changed that much over time [0]. Doubling the tax rate on the rich is unlikely to double tax revenue, and could easily decrease income tax revenue. If we want to increase tax revenue to fund our current and future liabilities, the money is almost certainly going to have to come from tax increases on the middle class (who don't pay meaningful amounts of federal income tax for the most part) in the form of a VAT, as almost every other developed nation has already determined. [0] https://taxfoundation.org/taxes-on-the-rich-1950s-not-high/ https://taxfoundation.org/taxes-on-the-rich-1950s-not-high/

turk73 7y ago

Did anyone actually pay those top rates ever? It seems to me that the wealthy had enough brains and resources to avoid ever landing in those absurd 90% tax brackets or whatever they were.