Skip to comments.Soak the rich with taxes and everyone will get clobbered
Posted on 10/18/2019 7:40:58 AM PDT by yesthatjallen
Not that long ago there was a broad political consensus that a fair and economically efficient tax system has a broad tax base and low tax rates. The grand bargain was no special interest loopholes and low tax rates to boost the economy and jobs. As recently as the 1980s, Democrats and Republicans alike joined together to pass a tax reform that lowered income tax rates to 28 percent, while eliminating deductions and carve outs. Nearly every Senate Democrat, including Ted Kennedy, Al Gore, Joe Biden, Bill Bradley, and Howard Metzenbaum, voted for this new tax system.
When the highest tax rate was between 70 percent and 90 percent, the wealthiest 1 percent of Americans paid less than 20 percent of the income tax burden. Today, with a tax rate of 37 percent, the rich pay almost 40 percent of the income tax burden. In short, high tax rates failed to soak the rich because they sheltered their income from taxes.
It is true that in the 1950s and 1960s when tax rates were as high as 90 percent, the economy was mostly prosperous. But the rich never paid those tax rates. Effective tax rates were actually much lower. This was also an era before the birth of the $2 trillion modern welfare and regulatory state and the taxes to pay for it.
Or look at the massive losses of people and income from high income tax states like New York, New Jersey, Rhode Island, Connecticut, Illinois, and even California. These states are bleeding wealth as residents relocate to low tax haven states like Tennessee, Arizona, Florida, Texas, and Utah.
(Excerpt) Read more at thehill.com ...
Is SALT a way the Dems lower taxes on the Rich ?
Thats right. The rich create the jobs.
Nobody EVER asks the question:
“How will taxing the rich affect YOUR life?”
Well this about creating that dystopian Running Man style society for the left. Grinding, starvation level poverty for 90% and the top 10% lavish themselves with gizmos, guilt free sexual perversion, GMO free food and drink, endless drugs and hedonism and the ability to figuratively and literally sodomize the bottom 90%. All the while telling the 90% that is that OTHER part of the 10% that is keeping them down. It’s sadistic and Satanic
That’s why we should scrap the current tax system and at minimum start all over again with the flat tax that Steve Forbes proposed back in 1996.
Leona Helmsley said it best... ‘We don’t pay taxes; only the little people pay taxes’
Rich people don’t pay taxes. They never have and never will and many of them... Like Elon Musk, survive and thrive on tax breaks. The middle classes have always paid the taxes and the rich have relied on their charitable contributions to assist society.
And all politicians who claim they will raise taxes on the rich are full of it.
CUT ALL TAXES.
REDUCE ALL GOVERNMENT.
Warren’s recent Medicare-for-all is estimated to cost around $34 Trillion — and she claims taxing the rich will pay for it.
The sum total of wealth of the top 100 Americans is just over $1 Trillion. If Warren confiscates it at 100%, she still has $33 Trillion to go — and she can only do the 100% confiscation once.
The Leftists are delusional. They keep repeating the line that the wealthy will pay for their plans. In reality, it is the middle-class taxpayers who get stuck. Just like they did with ‘if you like your doctor..., if you like your plan..., your premiums will go DOWN by $2000...’
You cannot help the poor by destroying the rich. You cannot strengthen the weak by weakening the strong. You cannot bring about prosperity by discouraging thrift. You cannot lift the wage earner up by pulling the wage payer down. You cannot further the brotherhood of man by inciting class hatred. You cannot build character and courage by taking away people’s initiative and independence. You cannot help people permanently by doing for them, what they could and should do for themselves. Abraham Lincoln.
The 10 Cannots (1916):
You cannot bring about prosperity by discouraging thrift.
You cannot strengthen the weak by weakening the strong.
You cannot help little men by tearing down big men.
You cannot lift the wage earner by pulling down the wage payer.
You cannot help the poor by destroying the rich.
You cannot establish sound security on borrowed money.
You cannot further the brotherhood of man by inciting class hatred.
You cannot keep out of trouble by spending more than you earn.
You cannot build character and courage by destroying men's initiative and independence.
And you cannot help men permanently by doing for them what they can and should do for themselves.
Very interesting take. Thanks.
“Its sadistic and Satanic”
That we know.
Soak the rich has two flaws. First the rich arent stupid a will seek ways to avoid the new higher taxes including moving out of the country. If, heaven forbid, Elizabeth Warren were to be elected next year, there would be an almost immediate flight of the rich. Stocks and securities would plummet as the wealthy would liquidate their assets and prepare to flee. The price of gold and silver would soar. The second flaw is what happens in year two. Those who did not flee the country and were taxed at ridiculous rates would have little incentive nor capital to continue with high earnings. Who doesWarren propose to soak next? Middle class taxpayers would be facing tax rates of 60-70% plus other tax schemes like a value added tax, high taxes on energy and even taxes on certain foods like red meat. The country would descend into a tax hell.
Thanks. I guess Lincoln is one of these people who gets all sorts of quotes attributed to him that he actually did not say.
Why would anyone believe that taking Money from the wealthy that somehow it will magically make it’s way to the poor???
The rich as a rule can support their lifestyles without depending on incomes from volatile forms of investment so when taxes are high they focus on low risk and wealth conservation, which reduces the general public’s access to their cash, shrinking the pool of capital available to borrowers and driving up the interest charged on those same funds.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.