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Bring back tax rates of 90% again for the obscenely rich - it was that way up until the late 1900s. Back when the US actually funded things that benefit most people not just tax breaks for already rich people.
You’re talking about income tax rates, and I agree that the top tax rates should be higher, but this won’t fix the problem because billionaires don’t make their money from salaries. Most of their money is theoretical and tied up in ownership of shares of a company.
They can sell shares or earn dividends to make money, so capital gains should also be taxed at a much higher rate. But billionaires often choose not to sell shares either because they have a better option…
They take out low interest rates loans using their shares as collateral. The interest rates they are charged are generally going to be far lower than the interest on their stocks that stay invested,. This is where most of their liquidity comes from, because loans aren’t taxed, and in some regard is almost an infinite money glitch for billionaires.
I think we need to make it illegal to use financial holdings as collateral for loans, at least for starters.
It was 50% before Reagan reduced it to 38%. The tax brackets aren’t nearly as large a contributor to inequality as the loopholes in tax law. Accelerated depreciation, tax credits, and the expensing rules for employee stock options are largely to blame for corporate tax evasion.
Not even caring about the specific number:
- why do tax brackets end at about the 5%? Basically wealthy and ultra-wealthy pay same rate as upper middle. We need more steps
- why are there so many non-salary sources of wealth with lower tax rates, when only the wealthy can take advantage?
The bottom half of r tax system is reasonably progressive, so why not the top?
Federal Tax Rates 2024 Tax Rate | For Single Filers
10% $0 to $11,600
12% $11,600 to $47,150
22% $47,150 to $100,525
24% $100,525 to $191,950
32% $191,950 to $243,725
35% $243,725 to $609,350
37% $609,350 or more
Plus state/local taxes on top of that.
Ok, fine, there’s a step or two in the ”wealthy” category, but my point holds.
- Why is someone who makes $X income taxed at the same rate as someone who makes (1,000 * $X) income?
- Why can more wealthy pay lower taxes for different sources of wealth, and claim that “it’s not income”
Plus state taxes usually have few to no brackets, and I’ve only heard of one having a millionaires tax
You could tax them at 100% but it wouldn’t fix the problem. There are simply just not enough of them. While wealth inequality is a problem, this alone don’t fix it. It is just a crutch.
no, increasing taxes on the wealthy, while simultaneously funding the IRS to go after white collar tax cheats, would 100% fix the problem.
And this would somehow cause a significant number of houses to be built? And if people have more money thru distribution of some sort, would they work harder to build more houses? If they don’t, how does this help?
So if it’s not a perfect solution it shouldn’t be done?
You may be right that a 90% tax on certain amount of wealth may not solve all the problems but that is a ton of money this country is leaving on the table that could really help people that need assistance.
So, we can’t tax their “unrealised gains” on stocks, but they can borrow against these same gains?
If you read my post, I did say wealth inequality is an issue. Bit to directly answer your question, if everyone suddenly recieved more money, would they differently be motivated to build more houses or create more cogs to make it lives better? And if they don’t, how does this help us?
I’m nearly fifty, now. Why am I disillusioned by capitalism? Because the illusion is thin and flimsy. I really hope the disillusionment of millennials isn’t just because they don’t have a good enough retirement plan, or anything else that can be easily fixed. I hope that they are waking up to realize that giving unelected, unaccountable, private owners of capital control over the production and distribution of goods, services, and information, is an extremist, antidemocratic idea, that is driving the global climate crisis, and the slide toward fascism.
They’ve played Monopoly enough to recognize it’s their turn to roll, holding $6 and no property, and the board is covered in hotels.
I love this comment. You put into words what I’ve been trying to convey to others. Thank you.
I believe that all concentrations of power are potentially dangerous because you never know into what hands that concentration of power is being put. Too often it’s concentrated in the hands of those personality types of the dark triad: narcissists, machiavellians, psychopaths. Those people should never have any authority or control over any human beings, and they should be prohibited from being in powewful positions. They are far too dangerous, and I believe that most of our world problems derive from these personality types.
I’m describing Cluster B personality disorders. The science is there and it’s real. All these people should never be in ANY positions of power or over people. That is my point. They are too dangerous.
Cause I click on a link to read a news article and the only thing I get is a pop up asking me to subscribe so i can view the news article.
Cos they ain’t got no fucking capital.
It’s not just folks under 40.
