Tax Rate for the Rich: Difference between revisions
Jump to navigation
Jump to search
(→Notes) |
|||
| Line 13: | Line 13: | ||
*Thus, as suggested above, Income Tax Brackets mean little due to loopholes at the top. | *Thus, as suggested above, Income Tax Brackets mean little due to loopholes at the top. | ||
==Notes== | ==Notes== | ||
*fatal problem with Democratic or liberal tax policy in the post War era: because taxes fall primarily on wages, redistribution, if any, has to occur | *fatal problem with Democratic or liberal tax policy in the post War era: because taxes fall primarily on wages, redistribution, if any, has to occur from more highly paid to lower paid workers or the non-working poor. The middle class is pitted against the lower class while the upper class sits on the sidelines. This is not a recipe for social stability. p8 [file:///home/marcin/Desktop/ssrn-3242314%20(1).pdf] | ||
from more highly paid to lower paid workers or the non-working poor. The middle class is pitted against the lower class while the upper class sits on the sidelines. This is not a recipe for social stability. | |||
=Deriving Solutions= | =Deriving Solutions= | ||
*First, is there a problem? Some say yes, some say no. The top 1% pay 25% of all income tax. [https://www.pgpf.org/article/how-do-we-tax-the-top-1-and-what-that-means-for-the-federal-budget/]. Top 1% own 30% of wealth. So the taxation amount seems to be fair? However, the super-rich pay much lower rates. Now the top 0.1% owns $20T, or about 14% of all wealth (and of course the skew is higher the richer we go) | *First, is there a problem? Some say yes, some say no. The top 1% pay 25% of all income tax. [https://www.pgpf.org/article/how-do-we-tax-the-top-1-and-what-that-means-for-the-federal-budget/]. Top 1% own 30% of wealth. So the taxation amount seems to be fair? However, the super-rich pay much lower rates. Now the top 0.1% owns $20T, or about 14% of all wealth (and of course the skew is higher the richer we go) | ||
*Flat rate across the board could be fair. Devil's in the details. So we can start with a ridiculous low rate such as 10%, or lowest bracket in the US system. This way, the US tax system is perfectly fair - but only up to $11k. People say a 'flat rate is regressive'. [https://www.google.com/search?sxsrf=ALeKk026QG9BbsZl0rNsBS9KmerMgczY_w%3A1602863734253&source=hp&ei=dsKJX6q8DJDYsAXHkpG4Cw&q=is+a+flat+tax+rate+fair+for+the+world&btnK=Google+Search&oq=how+to+configure+nvidia+geforce+gtx+1650+super+on+linux+mint&gs_lcp=CgZwc3ktYWIQAzIFCCEQoAEyBQghEKsCMgUIIRCrAjoOCAAQ6gIQtAIQmgEQ5QI6DgguELEDEMcBEKMCEJMCOggILhDHARCvAToLCC4QsQMQxwEQowI6CAgAELEDEIMBOggILhCxAxCDAToFCAAQsQM6AggAOgQIABAKOgYIABAWEB46CAghEBYQHRAeOgcIIRAKEKABUMsQWOmzAWD8tAFoBnAAeACAAeQGiAGhS5IBDTExLjQ3LjMuMi42LTGYAQCgAQGqAQdnd3Mtd2l6sAEG&sclient=psy-ab&ved=0ahUKEwiqz4DcvLnsAhUQLKwKHUdJBLcQ4dUDCAk&uact=5] Not if we start the bottom bracket at the minimum level - or even no taxes up to a certain level - and continue the 10% to higher brackets up to huge incomes - but without loopholes and writeoffs. You simply pay tax on your net. | *Flat rate across the board could be fair. Devil's in the details. So we can start with a ridiculous low rate such as 10%, or lowest bracket in the US system. This way, the US tax system is perfectly fair - but only up to $11k. People say a 'flat rate is regressive'. [https://www.google.com/search?sxsrf=ALeKk026QG9BbsZl0rNsBS9KmerMgczY_w%3A1602863734253&source=hp&ei=dsKJX6q8DJDYsAXHkpG4Cw&q=is+a+flat+tax+rate+fair+for+the+world&btnK=Google+Search&oq=how+to+configure+nvidia+geforce+gtx+1650+super+on+linux+mint&gs_lcp=CgZwc3ktYWIQAzIFCCEQoAEyBQghEKsCMgUIIRCrAjoOCAAQ6gIQtAIQmgEQ5QI6DgguELEDEMcBEKMCEJMCOggILhDHARCvAToLCC4QsQMQxwEQowI6CAgAELEDEIMBOggILhCxAxCDAToFCAAQsQM6AggAOgQIABAKOgYIABAWEB46CAghEBYQHRAeOgcIIRAKEKABUMsQWOmzAWD8tAFoBnAAeACAAeQGiAGhS5IBDTExLjQ3LjMuMi42LTGYAQCgAQGqAQdnd3Mtd2l6sAEG&sclient=psy-ab&ved=0ahUKEwiqz4DcvLnsAhUQLKwKHUdJBLcQ4dUDCAk&uact=5] Not if we start the bottom bracket at the minimum level - or even no taxes up to a certain level - and continue the 10% to higher brackets up to huge incomes - but without loopholes and writeoffs. You simply pay tax on your net. | ||
Revision as of 06:59, 13 January 2025
Income tax brackets for the USA in general: this tells us little, because the super-rich do not pay the 37%. [1]
Who pays? Not these guys:
The top wealth Americans pay betweeon 0.1% and 3% tax rate on income. Their growth in wealth is 10x of their income. [2]
Why do average americans support lower taxes for the rich? Because they think the rich deserve it [3]: 'we find strong support for fairness-based explanations'. Fairness-based explanations are this [4].
But 61% of the people think the rich don't pay a fair share. [5].
Key Points
Tax system has transitioned from an income tax system to a wage tax system through the 'buy-borrow-die' scheme. [6]- Thus, as suggested above, Income Tax Brackets mean little due to loopholes at the top.
Notes
- fatal problem with Democratic or liberal tax policy in the post War era: because taxes fall primarily on wages, redistribution, if any, has to occur from more highly paid to lower paid workers or the non-working poor. The middle class is pitted against the lower class while the upper class sits on the sidelines. This is not a recipe for social stability. p8 [file:///home/marcin/Desktop/ssrn-3242314%20(1).pdf]
Deriving Solutions
- First, is there a problem? Some say yes, some say no. The top 1% pay 25% of all income tax. [7]. Top 1% own 30% of wealth. So the taxation amount seems to be fair? However, the super-rich pay much lower rates. Now the top 0.1% owns $20T, or about 14% of all wealth (and of course the skew is higher the richer we go)
- Flat rate across the board could be fair. Devil's in the details. So we can start with a ridiculous low rate such as 10%, or lowest bracket in the US system. This way, the US tax system is perfectly fair - but only up to $11k. People say a 'flat rate is regressive'. [8] Not if we start the bottom bracket at the minimum level - or even no taxes up to a certain level - and continue the 10% to higher brackets up to huge incomes - but without loopholes and writeoffs. You simply pay tax on your net.