09-04-2015, 10:40 PM
(09-04-2015, 10:08 PM)JustWinBaby Wrote: I don't need to read the logic behind it to know it's stupid - I actually studied economics. And I also know there's little correlation between marginal tax rates and revenues collected by the govt. But a 90% tax rate is just the tops for attracting future investment and businesses!
And the wealthy pay quite a bit more than you realize. Let's take the owner of a C Corp:
1) 35% corporate tax rate
2) top federal rate on his income of nearly 40%
3) state and local taxes vary significantly, but let's call it 5%
So right there, every dollar his business earns he takes home $0.37 after taxes, which is an effective rate of 63%.
But we're not done. He invests that money back into his company and then has 23%+ taken out as a capital gain AFTER the 35% tax the corporation paid. Now we're north of 80% effective tax rate.
First, you're assuming all corporations actually do pay the statutory corporate tax rate, which surely you are aware is not the case.
Second, you're assuming all or most of the enormous income which would be required to qualify for a 90% income tax rate comes directly from the individual's corporation, which you also should be well aware is rarely the case.
Third and finally, while you're busy trying to write up sob stories for billionaires, most people are much more concerned about a country where a fraction of the top 1% of earners in the country possess about 90% of the wealth; wealth which they, of course, earned on the backs of their underlings who are fighting for some portion of the remaining 10%. While I understand your deep concern for those who have exponentially more than enough means to take care of themselves, I think you'll find most people--left, right or center--are more worried about those who are struggling.
