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Well, despite the glaringly obvious problem with your plan, this post also points out the weakness of your thought on these issues. Not everyone that receives a "government handout" does so because they are unemployed or underemployed. It would be amazing if this was merely a case of the hard-working vs the lazy as your simplistic thoughts show. Unfortunately, real-life and real issues are harder than that. Luckily for all, including you, there are people that understand better than you.
I'm not for higher taxes, but your first point is looking at it backwards in regards to number 2. You could get all kinds of crazy skews when you say "people with X income pay 80% of taxes, and people with Y income only pay 20%, so X is shouldering the burden". Taxation is ideally done at rates relative to the income of the individual, not what they contribute to the tax base as a whole.
Also, as a side note, I hope people understand when we're talking about the wealthy, it's unlikely anyone on this board falls into that category. Not that it makes it morally right to tax them at higher rates, but the top 1% of wage earners out-earn the bottom 90% of incomes - and that was in 2017. And their lead has grown even beyond that in 2020, fairly certain (looking for a source) that they are now earning more than the top 95%. Speak as you wish on taxation rates, but that system will fail eventually.
Also, as a side note, I hope people understand when we're talking about the wealthy, it's unlikely anyone on this board falls into that category. Not that it makes it morally right to tax them at higher rates, but the top 1% of wage earners out-earn the bottom 90% of incomes - and that was in 2017. And their lead has grown even beyond that in 2020, fairly certain (looking for a source) that they are now earning more than the top 95%. Speak as you wish on taxation rates, but that system will fail eventually.
The way I see it.
1. The billionaire can pay whatever they wish and when they wish it. The tax code isn’t effecting them. They will just retire if it does. Or move.
2. The millionaire can also adjust themselves on the fly too, unless they’re just beginning. Even at 3-5 million worth is enough to pack up and leave, or quit or both.
3. Going after their money that they already paid taxes on, that’s not invested, that’s not working and sitting in a safe is still just that, theirs. Hell, some of them will destroy it first before paying more taxes on it.
Lowering taxes on the 1% won’t do much for anyone but buy votes from the have nots. What we really mean by taxes on the rich, means the rich that can’t get away.
Will the US economy do better with a higher tax rate on just the upper class? What is the upper class? One answer was anyone making double the national average. Another said individuals making $78k or couples making $156k.
These are the ones in reality that will have to deal with any rise/falls in tax rates. If you’re making $80k now, how do you feel about 20% tax? 40%? Some people, even leaders in Congress, have been floating 50%. I read one calling for 90%. Regardless, some will not contribute their time to a job that losses half the pay. Unless the perks cover the other half. And they will have to, because that’s already a practice. Deferring pay is another. And if you defer, they pay it back the next year, with interest. You can also “loan” your paycheck back to the company. For a tidy profit. Who knows how many ways there are to get around taxes but I know it’s harder and harder the less you make.
1. The billionaire can pay whatever they wish and when they wish it. The tax code isn’t effecting them. They will just retire if it does. Or move.
2. The millionaire can also adjust themselves on the fly too, unless they’re just beginning. Even at 3-5 million worth is enough to pack up and leave, or quit or both.
3. Going after their money that they already paid taxes on, that’s not invested, that’s not working and sitting in a safe is still just that, theirs. Hell, some of them will destroy it first before paying more taxes on it.
Lowering taxes on the 1% won’t do much for anyone but buy votes from the have nots. What we really mean by taxes on the rich, means the rich that can’t get away.
Will the US economy do better with a higher tax rate on just the upper class? What is the upper class? One answer was anyone making double the national average. Another said individuals making $78k or couples making $156k.
These are the ones in reality that will have to deal with any rise/falls in tax rates. If you’re making $80k now, how do you feel about 20% tax? 40%? Some people, even leaders in Congress, have been floating 50%. I read one calling for 90%. Regardless, some will not contribute their time to a job that losses half the pay. Unless the perks cover the other half. And they will have to, because that’s already a practice. Deferring pay is another. And if you defer, they pay it back the next year, with interest. You can also “loan” your paycheck back to the company. For a tidy profit. Who knows how many ways there are to get around taxes but I know it’s harder and harder the less you make.
To really tax the wealthy you need to reform inheritance and dividend/capital gains tax. Income tax reform helps but while some people get paid well they aren’t necessarily wealthy.
Historically a higher income tax rate doesn’t change the effective tax rate much anyhow because of the allowable deductions that go with the tax bill.
Historically a higher income tax rate doesn’t change the effective tax rate much anyhow because of the allowable deductions that go with the tax bill.
