Should we tax the rich?

[nightdrot]

The question is problematic. As Justice Oliver Wendell Holmes said, "Taxes are the price we pay for civilization." "Tax the rich then" becomes merely an effort to shift the burden to one segment of society while others reap the benefits. It then conducing to government by moral hazard. It also affording a comfortable fiction that their is sufficient wealth in one segment of the population to carry the burden of all the population.

As an economic matter, this is problematic. Tax something and you will get less of it. Tax wealth and over time you will get less wealth - there being less incentive to create wealth. This then is the sure way to impoverish society by the illusion of enriching it.

Thus taxes go up to pay for universal health care for example. Then a funny thing happens. What group is the poorest in society? The 18 to 25 year old demographic. What group is the wealthiest - those 65 years old and older.

Which group uses health care the least? The 18 to 25 year old demographic. What group uses it the most? Those 65 years old and older.

Net result, increase taxes on the rich to fund "health care for all" and you end up transferring wealth from the rich to the poor who then hand it back to the rich in another form. The net result being the enriching of the rich against the poor.

This then getting yet more complicated. Mr. Biden's tax increase is popular. It seems only just and fair and society thinks that it can "have it all." However, in practice, it does not work that way.

Mr. Biden has proposed a tax increase for those making more than $400,000 a year. To the cheers - it may have been noticed - of Silicon Valley, the financial services and insurance sectors and the well to do. Indeed, it seems to have escaped everyone's notice that the higher a person's income, the more likely it is that they voted for Mr. Biden and thus his tax increase.

No one seems to have asked why that would be. Indeed, it would seem that the turkey voted for Thanksgiving based on this analysis.

The point being that the rich have the accountants, lawyers and lobbyists to navigate and - as necessary - influence the regulatory state. To wit, on paper, they may pay the increased tax. In fact, they probably will not - or at least will pay less of it that a "back of the envelope" calculation might suggest in the abstract. Also making up the difference in increased government spending on the services to which government will turn to implement the increased spending programs that the Democrats will now propose.

Thus, for example, increased public works programs will be paid for by government tax dollars. Those tax dollars will go to contracts with construction firms that will sign contracts to implement the government paid for construction programs. Similarly, accountants and financial services firms will charge their clients more to study and help their client shelter as much of their income as possible. Thus in two ways will the Biden tax increase and attendant government programs cycle the money back to the wealthy and their businesses.

Who will pay more? The small and medium sized businesses who do not have the legal, accounting and lobbying assets to navigate the regulatory state. The small business that makes a $400,000 profit does not take most of that for living high off the hog - but rather plows it back into its business. Thus will it now have less to invest back into itself.

CONT.

[Goforit1010]

The problem with this idea is that it not only applies to individuals but businesses as well. Anyone with half a brain KNOWS businesses do NOT pay taxes, it's their customers that pay them. Therefore, a tax like that affects EVERYONE who buys things. We'd ALL be paying more for our goods and services.

Besides, what are the plans for where that extra money is supposed to go?

The ONLY way I'm for this plan is:
1. The tax money is specifically applied to the national debt, and...
2. Congress will ONLY authorize spending as long as the Gov't has the income to match. In other words, spend according to a balanced budget. They MUST do that for that for the next 15 years minimum.

[1truekhaleesi]

Tax the rich. If daddy Bezos can't buy a third vacation home, I'm not losing sleep over it.

[Gwenhwyfar]

In theory one could eliminate a lot of the current tax avoidance loopholes

[Ram0n83]

I chose your first option simply as a default.

The rich are already taxed, and I believe that they should continue to be taxed.

They are not, necessarily, equally taxed.

Bill Gates and Warren Buffet have even stepped forward and claimed that the U. S. has a very disproportionate tax system. Several years ago, Buffet commented how he paid more money (in dollars) than his secretary, but his secretary paid more as a percentage of her overall yearly income. Buffet said that such a system is unfair. I agree.

I don't believe that the rich should be taxed more. But I believe that they should be taxed equally.

[AndyOh]

People with money (the rich) have already paid taxes, and pay more than the average person pays.
If the government starts taxing them more, you will see the 'rich' begin to leave this country or state. Why should they pay more because they found a way to make a lot of money? Good for them. Also, people with money invest it and buy things, which makes for more jobs... money flows.

[FakeName123]

Aside from the fact that most western nations already have progressive taxes - aka taxing wealthier people more. What we really need is a reduction of taxes in general so the price for a decent living standard goes down. And a simplification of tax-laws so it becomes more difficult to circumvent them. The more laws there are in a field, the more possibilities for loopholes exist. I am not rich and yet just from being self-employed I know a couple of ways on how to reduce taxes drastically.

[Avicenna]

Yeah, effective tax rates are too low. What’s really needed is a wealth tax that behind around $10 million.

[Hispanic-Cool-Guy]

The upper federal tax bracket for those making $500,000 or more is 37% not to mention their state tax which can range from 2% to 12%.

I support a progressive tax on the rich, but I think the rich are well taxed in the U. S. already; no need to further tax them like crazy.

[joeldalton]

Lmao. A compelling majority of Americans love rules that won’t affect them, apparently. What shitty behavior to demand the wealth of others that you didn’t earn.

[Anonymous]

Yes, they should be taxed. No one needs that kind of money and they owe it to the people who made their comfortable lifestyles possible.

[DizzyDesii]

I think everyone should be taxed the same. We have to understand that some worked harder than others

[OddBeMe]

hard question because I don't know the tax law. I do know there are too many loopholes.

[User2300]

What would be the purpose for taxing the rich?

[Anonymous]

Nope.