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We ALREADY have a more progressive tax system than almost any other country in the world by a large margin. In reality, that doesn't do a thing. The rich simpl
by hajile 3y ago
We ALREADY have a more progressive tax system than almost any other country in the world by a large margin.
In reality, that doesn't do a thing. The rich simply make up for you not paying taxes by paying you less. Finally, the rich pay capital gains rates and then only occasionally.
If you want to fix the problem, abolish income tax and add a universal sales tax on everything. Rich people then pay the same amount of taxes as everyone else (or their money just sits there). You can then reduce taxes on things like food staples which disproportionately benefit the poor. In the process, taxing the sale of stocks would immediately reign in the biggest issues in the stock market too.
- RhodesianHunter 3y agoYou believe that an income tax whose max bracket stops at $578,126, and where you stop having to pay medicare and social security taxes stop after $147,000 is progressive? You think that a flat capital gains tax lower than the top income tax brackets is progressive? That's... different.
- tasty_freeze 3y agoYour proposed fix would make the 1% completely happy. The poorest people spend 100% of their income and thus 100% of their income would be subject to that tax. Rich people invest and spend only a small portion of their income, and so only a small portion of their income would be subject to a tax.
- hellojesus 3y agoThe taxes should reflect the luxury of the purchase. That was the entire goal of US federal taxes prior to the country-ruining 16th Ammendment.
- hajile 3y agoWhen rich people invest, that means they are buying something. That thing gets taxed because they bought it. When they want to sell it to get a profit, someone has to buy it and pay taxes (factoring that tax into the equation also lowers selling price which is effectively a tax too). Poor people spend MOST of their income on their primary residence, food, utilities, and a couple other staples. You could simply eliminate taxes associated withe residences under X amount, taxes on staple foods, residential utility bills under a certain amount, etc. At that point, poor people would be paying few taxes while rich people would be forced to pay for all the things that make it worth being rich.
- usefulcat 3y ago> You can then reduce taxes on things like food staples Basic food items (e.g. bread, eggs, flour, milk) are already exempt from sales tax, at least in Texas, which is not exactly known for being progressive about anything.