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I understand that people don't like billionaires because of the existential inequality, but I think people don't understand taxes.
Example: Earn a million dollars, pay 30% tax on it.
Hire 7 people to work for you, they pay 30% on their income.
Buy something with your income?
Example: Earn a million dollars, pay 30% tax on it.
Hire 7 people to work for you, they pay 30% on their income.
Buy something with your income?
Pay 5-10% sales tax on it.
1e6 * 0.7*0.7*0.9 = 450k.
And now your business you invested in, after spending 700k on salaries earns $1.4M total. Pay 30% on the 700k profits.
Issue a dividend to you shareholders?
1e6 * 0.7*0.7*0.9 = 450k.
And now your business you invested in, after spending 700k on salaries earns $1.4M total. Pay 30% on the 700k profits.
Issue a dividend to you shareholders?
Recipients pay another 30% in taxes on the amount received.
My point is that people think that money gets taxed once. It gets taxed so many times along the way, in geometric fashion, it's surprising there is any left.
That said, there's certainly a lot of tax loopholes that lead to institutions not paying on this schedule.
A simpler, more transparent tax code would increase fairness in this regard.
A simpler, more transparent tax code would increase fairness in this regard.
One only has to look at the crazy backflips corporations do to elect specific tax treatments.
It'd be better to have a simpler system which imposes frictions in fewer places.
It'd be better to have a simpler system which imposes frictions in fewer places.
I don't think a wealth tax is a great idea, but one of the appealing aspects of switching to a wealth-tax only system is that it's theoretically much simpler to navigate.
In practice falls short and introduces new issues, but interesting to think about new tax doctrine.,
In practice falls short and introduces new issues, but interesting to think about new tax doctrine.,
I also like the georgist approach to property taxes. You pay what you think you owe based on a self-asessed property value, but anyone can buy your property at that price.
How much of a person's work output should the government be entitled to? Pick the closest answer.
It seems that tax policies don't start with answering the above question in a sane manner.
BTW; this isn't even mentioning inflation. You're paying like another 6%/year on all dollar assets you hold without writing a check.
