4 ms·

Why couldn't we just increase the sales tax especially on the goods that are consumed by the upper/upper-middle class?

bsenftner 7y ago
Likewise, let's eliminate as many of a tax shelters used by the 1%, as well as add luxury taxes to the financial planning services only the uber wealthy can afford.
- NovemberWhiskey 7y ago
  As a member of the 1%, please tell me more about the tax shelters that I'm using? The vast majority of salaried employees have essentially no options at all for sheltering from tax.
  - mattrp 7y ago
    Right... but you wouldn’t know that until all the deductions you used to have are wiped out because you make too much... and then you get AMT’s for added insult. And it’s not 1%... I don’t know the % you’d have to be the but the deduction wind down around $175k in w2 income. That’s hardly bezo’s territory. So let’s say you make $175k and have been thrifty and done a ton of saving and own your home... so now on top of that you’re getting wealth taxed? You know what will happen- this will decimate the white collar servant class in states like NJ where property taxes already exceed 50% of ones mortgage payment AND you can no longer deduct local taxes from your federal return... ever notice the people complaining the tax cuts unfairly benefitted the rich are the ones who already made too much to benefit from the doubling of the standard deduction (ie >80k) but too little that the removal of the state tax deduction really hurt (<$175k)... and yet these same folks somehow think the wealth tax won’t be for them. Dream on... dream on..
- everybodyknows 7y ago
  Curious that you're the first to mention an obvious first step in the right direction: Heavy tax on non-productive consumption and assets, a/k/a luxuries. Nobody "needs" a penthouse suite in Vegas, a 100 foot yacht, or a Ferrari. Why not start there?
ben509 7y ago
It's been tried. You wind up putting all the people who provide those goods and services out of work. https://www.washingtonpost.com/archive/business/1993/07/16/how-to-sink-an-industry-and-not-soak-the-rich/08ea5310-4a4b-4674-ab88-fad8c42cf55b/ https://www.washingtonpost.com/archive/business/1993/07/16/h...
NovemberWhiskey 7y ago
... because (almost by definition) the vast majority amount of concentrated wealth is never spent, and if you really want to raise a lot of money how is that going to work? 10,000% tax on mega-yachts and private jets?
- objektif 7y ago
  First of all all wealthy buy expensive land/real estate. We can start by that. They buy a lot of luxury goods as well. It does not even have to be aimed at uber wealthy. We can start taxing gas more for example.
chongli 7y ago
Because millionaires don’t eat a thousand times more food than “thousandaires.” Rich people don’t spend their money in general, they invest it, and then their children inherit it. Fine if you want to levy a huge tax on yachts, but very few people who could afford one have the inclination. And from what I gather, those who do want a yacht buy it in Italy, not the US. If you really want to tax the things rich people buy, then start with a land value tax. Rich people buy huge amounts of real estate. Taxing it at its fair, unimproved value would be ideal [1]. [1] https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax
- AJ007 7y ago
  Wealthy people also like to buy up large amounts of undeveloped land for conservation purposes. I’m not sure why they don’t just say they are jacking up income & capital gains taxes, and getting rid of tax-free asset transfers to non-profits. I still haven’t seen anyone estimate how much Amazon’s value would drop if Jeff Bezos has to liquidate 6%+ of his Amazon shares every year. Who is even buying those shares? One could claim, well the existing trading volume would support it, but these predicted, yearly fire sales are going to be happening across all asset classes by the ultra wealthy. We may just be switching from paying for current consumption with IOUs (Treasury bonds) to transferring ownership of American assets to foreigners and thus future income.
- objektif 7y ago
  I don't know why you start buy giving an irrelevant example and then give another that agrees with my point but yeah we can be creative about what type of transactions we want to tax.
pjc50 7y ago
Put sales tax on political donations over a certain amount. After all, you're buying a politician.

Likewise, let's eliminate as many of a tax shelters used by the 1%, as well as add luxury taxes to the financial planning services only the uber wealthy can afford.

NovemberWhiskey 7y ago
As a member of the 1%, please tell me more about the tax shelters that I'm using? The vast majority of salaried employees have essentially no options at all for sheltering from tax.
- mattrp 7y ago
  Right... but you wouldn’t know that until all the deductions you used to have are wiped out because you make too much... and then you get AMT’s for added insult. And it’s not 1%... I don’t know the % you’d have to be the but the deduction wind down around $175k in w2 income. That’s hardly bezo’s territory. So let’s say you make $175k and have been thrifty and done a ton of saving and own your home... so now on top of that you’re getting wealth taxed? You know what will happen- this will decimate the white collar servant class in states like NJ where property taxes already exceed 50% of ones mortgage payment AND you can no longer deduct local taxes from your federal return... ever notice the people complaining the tax cuts unfairly benefitted the rich are the ones who already made too much to benefit from the doubling of the standard deduction (ie >80k) but too little that the removal of the state tax deduction really hurt (<$175k)... and yet these same folks somehow think the wealth tax won’t be for them. Dream on... dream on..
everybodyknows 7y ago
Curious that you're the first to mention an obvious first step in the right direction: Heavy tax on non-productive consumption and assets, a/k/a luxuries. Nobody "needs" a penthouse suite in Vegas, a 100 foot yacht, or a Ferrari. Why not start there?

ben509 7y ago

It's been tried. You wind up putting all the people who provide those goods and services out of work. https://www.washingtonpost.com/archive/business/1993/07/16/how-to-sink-an-industry-and-not-soak-the-rich/08ea5310-4a4b-4674-ab88-fad8c42cf55b/ https://www.washingtonpost.com/archive/business/1993/07/16/h...

NovemberWhiskey 7y ago

... because (almost by definition) the vast majority amount of concentrated wealth is never spent, and if you really want to raise a lot of money how is that going to work? 10,000% tax on mega-yachts and private jets?

objektif 7y ago
First of all all wealthy buy expensive land/real estate. We can start by that. They buy a lot of luxury goods as well. It does not even have to be aimed at uber wealthy. We can start taxing gas more for example.

chongli 7y ago

Because millionaires don’t eat a thousand times more food than “thousandaires.” Rich people don’t spend their money in general, they invest it, and then their children inherit it. Fine if you want to levy a huge tax on yachts, but very few people who could afford one have the inclination. And from what I gather, those who do want a yacht buy it in Italy, not the US. If you really want to tax the things rich people buy, then start with a land value tax. Rich people buy huge amounts of real estate. Taxing it at its fair, unimproved value would be ideal [1]. [1] https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax

AJ007 7y ago
Wealthy people also like to buy up large amounts of undeveloped land for conservation purposes. I’m not sure why they don’t just say they are jacking up income & capital gains taxes, and getting rid of tax-free asset transfers to non-profits. I still haven’t seen anyone estimate how much Amazon’s value would drop if Jeff Bezos has to liquidate 6%+ of his Amazon shares every year. Who is even buying those shares? One could claim, well the existing trading volume would support it, but these predicted, yearly fire sales are going to be happening across all asset classes by the ultra wealthy. We may just be switching from paying for current consumption with IOUs (Treasury bonds) to transferring ownership of American assets to foreigners and thus future income.
objektif 7y ago
I don't know why you start buy giving an irrelevant example and then give another that agrees with my point but yeah we can be creative about what type of transactions we want to tax.

pjc50 7y ago

Put sales tax on political donations over a certain amount. After all, you're buying a politician.