Taxes

[*TheLeonardLeap*]

(03-22-2019, 06:43 PM)Bengalzona Wrote: Not surprisingly, the question morphs from "could we do it" into "should we do it". And that is okay. It is also a worthwhile discussion, IMO.

But let me ask this: Would there be enough money to cover federal government expenses if we only billed, say, the income of the top 25% at 70% along with capital gains tax raises?

Thoughts?

If your question is merely a "could" rather than a "should", then my answer is: Yes. At least at first.

I am assuming you mean 70% with no loopholes or ways to reduce it? Because if we are talking 70% and people using all the offshore/tax haven/loophole/etc, probably not because they will find a way to reduce it a ton (as they did in the past when there was a huge tax rate, nobody actually paid at that rate). 

If you closed off all loopholes and such and it was a straight 70%, it would probably stop working because people would get tired of working for $1m and only coming home with $300k. Or earning $250k and only actually getting $75k. 

Meanwhile a house earning $75k get to go home with $75k.

People would get tired of that real quick And I don't think it would be sustainable.