Taxes on the rich always fall back to the middle class, why?
Because the rich have lawyers, accountants, lobbyists that rework their books according to new definitions of income, exemptions, passivity, investment, offshore transfers.
As billionaire Warren Buffett once remarked, “my secretary pays taxes at a higher rate than I do”.
So what happens then?
The income money of the rich is redefined, reworked, disappears, jobs leave, factories leave, money leaves in a stampede ... leaving the middle class ...
to pick up the tab.
This is why the Income tax as a tax system is a failure. The sixteenth was written by a group that at the same time installed the central bank. That’s not a coincidence.
The best tax system is based on a uniform consumption tax with uniform tax credits built-in.