Loc: Finland, on the Arctic Circle
Yeah but taxing them rich folks lightly creates more disposable income which in effect is excessive surplus capital to be invested thus creating jobs and...geez, even in Monopoly the money circulating in the system runs out eventually, unless you redistribute it.
Thanks. An interesting read. I liked this part especially:
He looked over the history of tax cuts and economic bubbles, and found a clear relationship between the two. High top marginal tax rates (generally well above 60%) on rich people actually stabilize the economy, prevent economic bubbles from forming, prevent economic crashes, and lead to steady and sustained economic growth (and steady and sustained wage growth for working people).
On the other hand, when top marginal rates drop below 50 percent, the opposite happens. As Beinhart noted in a November 17, 2008 post on the Huffington Post, the massive Republican tax cuts of the 1920s (from 73% to 25%) led directly to the Roaring '20s stock market bubble, temporary boom, and then the crash and Republican Great Depression of 1929.
The Monopoly analogy isn't too far off, really, although it is a bit simplified: It's basic mathematics that when you have a finite quantity of resources aka money and the whole system is based on those resources, aka money, circulating in the system, so when that money accumulates to the top of the pyramid more and more over time, the system starts coughing up eventually. And like my friend eloquently just put it in IM: "Yeah, and at some point it will be resolved with violence" as it tends to happen.
Even here in Finland the trend seems to be shifting toward taxing consumption with suggested hikes in value added taxes and lowering income taxes. The boldest arguments for that even claim that it would be more equal for everyone.
I think a lot of people just have no clue on how much..uhm...little, in the case of low income brackets they actually pay in income taxes here in Finland for instance after all the automatic deductions. But oh well, complaining about taxes is a great pastime.
1 - Taxing the rich (income) wise is sorta kinda over the top. We all pay a % on income, so the the more you make the more you pay. Enough said on that one.
2 - Company tax breaks - Used to be but now not to sure but at one time - A company had to pay a (profit tax) of 50% <-- or ya can Invest that 50% tax free. Like opening a new business somewhere which hires new people, and write the whole she bang off. But it created jobs.
So in my opinion. What really needs to be change - is the tax write offs. Not increase taxable income.
For example; The rich cannot write off their (yacht) just because they invited some business guess on board.
Loc: Pinellas Park, Florida
carp, the article explains that not taxing the rich does absolutely nothing positive for everyone else - only the rich get richer. We've already seen that trickle down economics and giving the rich tax breaks doesn't create jobs. If it did, we wouldn't have over 9% unemployment now (closer to 13% around here).
The rich already pay for more taxes than someone who makes say 36,000 per year - we all pay about the same tax percentage based on income. The more ya make the more you pay - simple math.
I do agree that giving them a tax break on (( income tax)) is not gonna make a whole big deal at all for more jobs, it is their (pay check) we are talking about. Ya have to cut away many of their tax write offs, like as I mentioned , private yachts , fast cars , private jets, yada yada .
Example; I could fly in a private jet from here to pick your arse up - so long as we talked about business - I can write a good portion of that off and any meals as well. As the cost of doing business. What percentage they can claim today, I dunno - but that can be scaled back.
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