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> because a person can’t personally create $10,000,000.00 of value in a year. Or even $8,000,000.00 of value. The only way to do that is to own a disproportiona

by Alupis 2y ago

> because a person can’t personally create $10,000,000.00 of value in a year. Or even $8,000,000.00 of value. The only way to do that is to own a disproportionate slice of the American economy. This is a very problematic view of the world, and is not in line with reality. The people who earn $10MM a year make decisions that impact the lives of thousands (10's of thousands, or 100's of thousands) of employees. They are usually also directly responsible for millions of dollars in salaries every month. The myth that executives running a business don't earn their pay is silly. > A flat tax of 20% would be ruinous to the poor and lower middle class. Also not true even a little bit. Most of the lower and middle class already pay more than 20%.

mulmen 2y ago
> The people who earn $10MM a year make decisions that impact the lives of thousands (10's of thousands, or 100's of thousands) of employees. But those decisions are worthless without people to carry them out. > They are usually also directly responsible for millions of dollars in salaries every month. So what? The salaries may add up to millions but what’s the denominator? This doesn’t justify a 100x multiplier on earnings. > Also not true even a little bit. Most of the lower and middle class already pay more than 20%. Are you including sales, property, and state income tax? Median income in the US is $80,610.00. The effective federal income tax rate at that income level is 16.23% but that assumes no deductions. In reality the median earner is going to take the standard deduction for $13,850.00 so they’re only going to pay federal income tax on $66,760.00 so their effective rate is 15.04%. This doesn’t consider student loan payments, mortgage interest deductions, or retirement account contributions, which will further lower the effective rate. This is for the median income. For lower incomes the effect is even more dramatic. So the only way most of the lower and middle class pay more than 20% is if you count all taxes paid. But that means for your flat 20%-no-deductions tax to be a better deal it has to come with an abolition of all other taxes. If so how do municipalities get funding? Does it all come from the federal government?

by Alupis 2y ago

mulmen 2y ago

> The people who earn $10MM a year make decisions that impact the lives of thousands (10's of thousands, or 100's of thousands) of employees. But those decisions are worthless without people to carry them out. > They are usually also directly responsible for millions of dollars in salaries every month. So what? The salaries may add up to millions but what’s the denominator? This doesn’t justify a 100x multiplier on earnings. > Also not true even a little bit. Most of the lower and middle class already pay more than 20%. Are you including sales, property, and state income tax? Median income in the US is $80,610.00. The effective federal income tax rate at that income level is 16.23% but that assumes no deductions. In reality the median earner is going to take the standard deduction for $13,850.00 so they’re only going to pay federal income tax on $66,760.00 so their effective rate is 15.04%. This doesn’t consider student loan payments, mortgage interest deductions, or retirement account contributions, which will further lower the effective rate. This is for the median income. For lower incomes the effect is even more dramatic. So the only way most of the lower and middle class pay more than 20% is if you count all taxes paid. But that means for your flat 20%-no-deductions tax to be a better deal it has to come with an abolition of all other taxes. If so how do municipalities get funding? Does it all come from the federal government?