"Tax 'em at 200%! That'll bring in more revenue!"
Posted on 11/15/2019 5:30:43 AM PST by karpov
Democratic presidential candidate Elizabeth Warren has unveiled sweeping tax proposals that would push federal tax rates on some billionaires and multimillionaires above 100%.
That prospect raises questions for taxpayers and the broader economy that experts are starting to ponder: Under which circumstances would taxpayers have to pay those rates? How might that change their behavior? And would investment and economic growth suffer?
Potential tax rates over 100% could result from the combination of tax increases the Massachusetts senator proposes for the very top tier of investors. She wants to return the top income-tax rate to 39.6% from 37%, impose a new 14.8% tax for Social Security, add an annual tax of up to 6% on accumulated wealth and require rich investors to pay capital-gains taxes at the same rates as other income even if they don’t sell their assets.
Consider a billionaire with a $1,000 investment who earns a 6% return, or $60, received as a capital gain, dividend or interest. If all of Ms. Warren’s taxes are implemented, he could owe 58.2% of that, or $35 in federal tax. Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60. The result: taxes as high as $95 on income of $60 for a combined tax rate of 158%.
The rate would vary according to the investor’s circumstances, any state taxes, the profitability of his investments and as-yet-unspecified policy details, but tax rates of over 100% on investment income would be typical, especially for billionaires.
“It’s just a continuing laundry list of proposals that just keep heaping on,” said Robert Gordon of Twenty-First Securities Corp. ...
...
Beyond the estimated 75,000 households that would be hit by the wealth tax, Ms. Warren’s capital-gains plan would transform investing rules for the top 1%—about 1.5 million households.
(Excerpt) Read more at wsj.com ...
Congress needed a Constitutional amendment to tax individual income.
That did not permit tax of holdings.
Warren’s proposal is unconstitutional; odds of getting such passed is nil.
“If such a stupid plan was ever implemented,...”
That’s what is missing from the news reporting. Exactly how is she going to get this passed through Congress? The faker will say anything to get the party nomination. If she is nominated, then astute GOP Congressional candidates would pounce non-stop on their demokrap opponents - box them as supporters of the faker’s radical plan.
Elizabeth Warren has done the impossible with her tax plans.
She has made impeachment look like a reasonable way to move Donald Trump out of the White House.
I guarantee you this: if that rat bitch gets elected I'll commit suicide.
I wouldn’t want to live in a world with insanity such as hers sitting in the most powerful position on the planet. Period.
Everything, plus an ear.
Please try to explain that to all those who speak of things being reduced by more than one hundred percent. I’m 75 and I swear that the lack of respect for the true meaniong of language has destroyed the brains of millions of Americans.
The flow of some of that capital would start quietly if it begins to look like (polling) she would win ... and then the flow would increase should she win. Part of her plan would have to include penalizing (tax) capital flows. That won’t happen until Congressional members have protected their assets first, and then exempt themselves from the legislation.
Naw. Life would get harder after a year or two, but there are elections, and Reagan said it best: Are you better off than you were four years ago?
Frankly, trump should find a way to resurrect that. Perhaps he’s got people working on it.
Not just federal! There are state and city taxes! Those taxes are figured on your gross. They don’t care if you have NOTHING left from your gross.
And stop calling it a wealth tax! It’s confiscation! Just like the property “tax” which is incremental confiscation of your house.
Nobody will pay a tax rate of one hundred percent.
Vast amounts of money would move overseas as would any high earners who could. The cost for f capital would skyrocket. Thus businesses would not expand or even get started. It would tank the economy. Lots of high earners would go John Galt and retire.
Over and above the disastrous economic consequences, taking 100% of somebody’s earnings - the fruits of their labor - is akin to slavery.
“Congress needed a Constitutional amendment to tax individual income. That did not permit tax of holdings.”
There are some interesting law articles out there arguing that Congress may constitutionally tax assets. All that is necessary is to get this in front of a demokrap-appointed federal judge, and let Supreme Court tax expert Roberts cast the deciding vote. We have wandered so far from the original Constitution, and the judiciary has morphed into a legislative branch that no other branch ever challenges their unconstitutional actions ... the odds of “nil” no longer apply.
“Over and above the disastrous economic consequences, taking 100% of somebody’s earnings - the fruits of their labor - is akin to slavery.”
AKIN to slavery? I think it’s worse, at least a slave is allowed to eat. How can you eat when they take every dime and stand there with a hand out waiting for more?
“Nobody will pay a tax rate of one hundred percent.”
Correct. Black markets will arise. The need to have only electronic currency will become even more important to the government. Also, USA will become like Venezuela before too long. We won’t recognize it.
Lyawatha has stated publically that her wealth tax will be 2%, but her WRITTEN plan calls for 6%.
Lyawatha has stated publically that her wealth tax will be 2%, but her WRITTEN plan calls for 6%.
I read somewhere that with her plan the IRS would determine value.
What has sanity got to do with anything, or physical reality for that matter?
If you have any doubts or questions, watch the impeachment proceedings today.
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