Labor Share of National Income!

[zymurgy]

^retardo strikes back

 

[Crepitus]

I would not go that far as that could mean a 90% tax on the same income earned, year over year over year, even if after taxed the first time the person does not have any other big financial gains.

But we are conceptually aligned.

what makes NO SENSE is the concept to ignore the uber rich TAX RATE and instead only focus on aggregate taxes they pay while saying that 'since they pay the most already looking to them to pay more is wrong.

They create this very situation where you can see someone who just made his first Trillion dollars only paying a 1% tax ($10B) in State and Federal taxes, versus a Middle class person making $60K/yr paying ~30% ($18K) and the republican magat argument is 'see the trillionaire paid in $10B while the MC guy only paid $18k so lets lower the tax rate on billionaire to 0.1%."

And then so on and so on as that allows the trillionaires wealth to explode ever upward creating the very situation that magats will say justify yet another tax cut to them because 'look he is paying the most at 0.1% by paying a few billion so cut his taxes now to 0.001%.

It is this type of perversity in logic that magats like @zymurgy are blind to as this very tax policy pushes wealth up with them then claiming that as justification for the next tax cut and refusing to even address while just point to them 'paying more' as a reason to justify ever increasing tax cuts to the oligarchs.

I'm all for taxing income over a certain number at anywhere from 50 to 90%

 

[QP!]

I'm all for taxing income over a certain number at anywhere from 50 to 90%

Yes income.

I'm just saying not just wealth where a person could make x millions in one year and pay that tax... travel the world for two years but be forced to pay the tax again each year if you base it as a annual wealth tax.

 

[Crepitus]

Yes income.

I'm just saying not just wealth where a person could make x millions in one year and pay that tax... travel the world for two years but be forced to pay the tax again each year if you base it as a annual wealth tax.

YOu mean like we do for our houses and cars?

 

[QP!]

YOu mean like we do for our houses and cars?

Not every year.

Imagine having to pay the entire tax you paid upon purchase each year or making a million, paying a full and proper tax and traveling the world for two years and they take the full and proper tax again each year. Yikes.

 

[Crepitus]

Not every year.

Imagine having to pay the entire tax you paid upon purchase each year or making a million, paying a full and proper tax and traveling the world for two years and they take the full and proper tax again each year. Yikes.

Yes, yes we do pay that every year. We call it "taxes".

 

[QP!]

Yes, yes we do pay that every year. We call it "taxes".

No you sure as hell do not.

If you sell your company and make a big $10m windfall and pay the 23% in combined taxes (capital gains+) and you decide to go back packing around the world and not work for 5 years you do not come home broke as you had to pay basically the same 23% per year on the Wealth you maintained after you paid the tax.

You DO NOT pay tax on that sitting wealth at all and you should not, imo.

My view is it would be perverse to keep taxing the same money, after it is initially proper taxed as that would incentivize people to try and blow it quickly before taxes just ate up sitting.

 

[Crepitus]

No you sure as hell do not.

If you sell your company and make a big $10m windfall and pay the 23% in combined taxes (capital gains+) and you decide to go back packing around the world and not work for 5 years you do not come home broke as you had to pay basically the same 23% per year on the Wealth you maintained after you paid the tax.

You DO NOT pay tax on that sitting wealth at all and you should not, imo.

My view is it would be perverse to keep taxing the same money, after it is initially proper taxed as that would incentivize people to try and blow it quickly before taxes just ate up sitting.

My house taxes are due every single year, as are my tags for my cars. My savings/investments are not are not, if that's what you are getting at.

 

[QP!]

My house taxes are due every single year, as are my tags for my cars. My savings/investments are not are not, if that's what you are getting at.

Yes my initial point was i would not support an annual WEALTH TAX that worked like a yearly income tax and was based on your wealth value.

Meaning if you sell your business and make $10M and pay the~32% taxes due to that sale and then are left with that cash you do not keep paying taxes on what remains of that $10M as if it was new income each year.

An annual wealth tax that just adds up your assets (cash, home, car, etc) and then makes you pay an income equivalent tax on that each and every year would make home ownership impossible for most of the middle class.

The much smaller maintenance type taxes, like property taxes and road taxes are fine but not a full income like tax so if you buy yourself a $50,000 car you then pay an additional $50k of income equivalent wealth tax on top of your income tax.

 

[Crepitus]

Yes my initial point was i would not support an annual WEALTH TAX that worked like a yearly income tax and was based on your wealth value.

Meaning if you sell your business and make $10M and pay the~32% taxes due to that sale and then are left with that cash you do not keep paying taxes on what remains of that $10M as if it was new income each year.

An annual wealth tax that just adds up your assets (cash, home, car, etc) and then makes you pay an income equivalent tax on that each and every year would make home ownership impossible for most of the middle class.

The much smaller maintenance type taxes, like property taxes and road taxes are fine but not a full income like tax so if you buy yourself a $50,000 car you then pay an additional $50k of income equivalent wealth tax on top of your income tax.

When I sold mine it was more like 23% but yes. I am not in favor of retaxing. I am for taxing income. The caveat here is that if your million dollar portfolio increases to 1.2 million then the $200K is income and should be taxed.

That would go a long way towards eliminating the "buy borrow die" thing the billionaires use to avoid paying taxes.