Maximum taxation - good or bad?

[Revoltingest]

I say:
First $25K income is tax free.
$25-50K taxed at 12.5%
$50-100K taxed at 15%
$100-500K taxed at 20%
$500K-1M taxed at 30%
$1M-10M taxed at 35%
$10M-50M taxed at 50%
$50M-100M taxed at 80%
$100M+ taxed at 92.5%
I also would favor capital gains taxes at a flat 25% for gains income up to $500K, at 50% on gains income between $500K and $1M, and at 75% on gains income above $1M.
I favor closing tax loopholes that benefit earners and capital gainers bringing in seven plus figures per year.
And I also favor a VAT on high-end luxury goods (i.e., more than one automobile per driver per family, second homes, yachts, etc.).

Problems:
- High marginal rates will cause capital to become idle or flee. This will hurt productivity & reduce revenue.
- Capital gains tax, when not indexed for inflation, heavily taxes phantom gain, ie, the added dollars needed just to reach the same economic value one started with.

 

[Jeremy Mason]

I think if a group of people have 90% of the wealth, they should pay 90% of the taxes. If another group holds 5% of the wealth, they should pay 5% of the taxes. seems fair to me.

 

[nnmartin]

Military: No wars except in self-defense.
Infrastructure: States should handle that which shouldn't be done by the Fed.

Schools: State level funding.

but this is surely the same thing.

The individual states need to get their money from taxation , so how do you propose they do this on such low rates?

The military is another issue.

Very low tax = very low money for state funding - yes?

 

[Revoltingest]

but this is surely the same thing.
The individual states need to get their money from taxation , so how do you propose they do this on such low rates?

I was addressing federal taxation.

 

[nnmartin]

I think if a group of people have 90% of the wealth, they should pay 90% of the taxes. If another group holds 5% of the wealth, they should pay 5% of the taxes. seems fair to me.

That seems like a good proposal.

Hard to administer I would have thought, but good in theory.

I still think the maximum earnings is the best way to avoid all these types of problems and complications that have been brought up so far on the thread.

Perhaps the figure could be upped to 150K/year as I am in a generous mood today

 

[nnmartin]

I was addressing federal taxation.

Income tax is income tax though.

or do you mean you have to pay 2 types of income tax in the US - ie: one to the state and one to the federal tax board?

 

[Jeremy Mason]

That seems like a good proposal.

Hard to administer I would have thought, but good in theory.

I still think the maximum earnings is the best way to avoid all these types of problems and complications that have been brought up so far on the thread.

Perhaps the figure could be upped to 150K/year as I am in a generous mood today

Fair enough.

 

[Revoltingest]

Income tax is income tax though.

or do you mean you have to pay 2 types of income tax in the US - ie: one to the state and one to the federal tax board?

We pay the fed gov:
- Income tax
- Alternative minimum tax
- Self-employment tax or payroll taxes
- Inheritance tax
- Capital gains tax (15% to 28%)
We pay the state & local gov:
- Income tax
- Business tax
- Real property tax
- Personal property tax
- Intangibles tax
- Sales tax
- Use tax
- Special assessments

 

[nnmartin]

ok, so how will the individual States fund all the things I mentioned such as:

infrastructure, schools, welfare etc...?

on the low tax bands you mentioned.

 

[Levite]

Problems:
- High marginal rates will cause capital to become idle or flee. This will hurt productivity & reduce revenue.
- Capital gains tax, when not indexed for inflation, heavily taxes phantom gain, ie, the added dollars needed just to reach the same economic value one started with.

I would also favor:
tax credits for graduate education and private education (I think public education should be free through undergraduate degree),
tax credits for small business owners and family farmers,
tax credits to companies and corporations that keep their staffing and production entirely in America,
tax credits for businesses that produce and/or innovate environmentally-friendly products,
tax credits for businesses that adhere to fair practices and human rights standards overseas,
tax credits for exceeding Federal environmental standards, and
tax credits for businesses that exceed Federal minimums not only in employee safety and wages, but also in provision of benefits (including vacation time, as I believe Federal law ought to mandate that all salaried workers receive a minimum two weeks paid vacation per year, all hourly workers a minimum of one week).

I think these things balance out higher taxes, and, combined with the extra disposable income that such tax restructuring (along with things like free public college, guaranteed annual vacation, and universal health care, which I also favor) will ensure that the economy does not suffer, that capital still flows, and there is not too much corporate flight.

 

[Kathryn]

i believe it would. You want to raise revenues? Eliminate loop holes, not raise taxes.

right on.

 

[Jeremy Mason]

I would also favor:
tax credits for graduate education and private education (I think public education should be free through undergraduate degree),
tax credits for small business owners and family farmers,
tax credits to companies and corporations that keep their staffing and production entirely in America,
tax credits for businesses that produce and/or innovate environmentally-friendly products,
tax credits for businesses that adhere to fair practices and human rights standards overseas,
tax credits for exceeding Federal environmental standards, and
tax credits for businesses that exceed Federal minimums not only in employee safety and wages, but also in provision of benefits (including vacation time, as I believe Federal law ought to mandate that all salaried workers receive a minimum two weeks paid vacation per year, all hourly workers a minimum of one week).

I think these things balance out higher taxes, and, combined with the extra disposable income that such tax restructuring (along with things like free public college, guaranteed annual vacation, and universal health care, which I also favor) will ensure that the economy does not suffer, that capital still flows, and there is not too much corporate flight.

I like it, except for the part about hourly and salary vacations. All people need equal vacation time regardless of their pay structure. I would simplify the qualification as 35 hours or more a week would be entitled to two weeks of vacation.

 

[Kathryn]

Thank goodness my husband and I are self employed - at least we won't have to worry about someone mandating how much or how little vacation we get.

Damn - talk about a nanny state!

 

[mohinishaktidevi]

Maximum taxes is the Greatest invention since Democracy came into vogue.

That will leave only the Mafia and the Chinese as the only true-blooded capitalists alive.

 

[YmirGF]

Damn - talk about a nanny state!

What is staggering, Kathryn, is that so many seem so willing to lovingly embrace it. They don't realize they actually want "Big Brother". :help:

 

[YmirGF]

Maximum taxes is the Greatest invention since Democracy came into vogue.

I'd suggest it is probably one of the dumbest, most counter-productive, ideas espoused.

 

[nnmartin]

so if the rich aren't heavily taxed, then where do you propose the govt to get it's money from?

And Big Brother is fine if freedom can be maintained to reasonable levels.

 

[YmirGF]

so if the rich aren't heavily taxed, then where do you propose the govt to get it's money from?

And Big Brother is fine if freedom can be maintained to reasonable levels.

And once the rich have had their riches taken from them... who do you turn to to finance the inflated entitlement schemes?

 

[nnmartin]

The govt will provide it from the National fund.

but the entitlement schemes will be kept honest and relatively basic.

ie: govt will provide housing, health , jobs and unemployment benefit (if necessary)

the days of having 3 houses ,5 cars and servants will be over for the good of the nation.

 

[Revoltingest]

The govt....entitlement schemes will be kept honest and relatively basic.

Hah! What a comedian...using "govt" & "honest" in the same sentence!
This is America yer talk'n about....not Revoltingistan.