Do you support a 70%+ tax bracket for top earners? (1 Viewer)

Joined
Jul 19, 2001
Messages
21,861
Reaction score
52,689
Location
GBTR
Online
So you're telling me that the key to economic growth is less capital investment?
I ask again because you ignored or missed this...

Why does he invest 25 million creating jobs when the demand isn't there because the people are barely scraping by and cannot afford his new goods or services from the 25 million investment?

Or are you saying his simple investing of money in a market creates those jobs?
 

mt15

Subscribing Member
Staff member
Super Moderator
VIP Subscribing Member
Platinum VIP Contributor
Joined
Mar 14, 2006
Messages
12,792
Reaction score
17,191
Offline
She’s wrong. Top federal tax rate is 37% and she doesn’t pay that much until she hits over $500,000 per year.

Now when she earns that much, her total tax rate including state and local could be 45% but it’s not all going to the IRS.

And, lol, at her acting like tax withholding is something the IRS does to “artists”. No, they do it to every wage earner.
 

superchuck500

tiny changes
VIP Subscribing Member
VIP Contributor
Diamond VIP Contributor
Joined
Aug 9, 2004
Messages
45,905
Reaction score
60,322
Location
Mt. Pleasant, SC
Online
She’s wrong. Top federal tax rate is 37% and she doesn’t pay that much until she hits over $500,000 per year.

Now when she earns that much, her total tax rate including state and local could be 45% but it’s not all going to the IRS.

And, lol, at her acting like tax withholding is something the IRS does to “artists”. No, they do it to every wage earner.
I'm not sure where she files but CA and NY both have state income tax at about 8.5%, so added to 37% federal, it puts you at 45%. It's common for people to consider their total tax liability as paid to the IRS, even though there's a state component to it.

Also, if she's looking at total with-holdings on a check, there might be other federal elements to it (social security, medicare) that she's just lumping in - or possibly self-employment (I'm not sure how she's getting paid). But all of that pushes the federal liability up and lots of people just consider that tax even though it isn't accurate.
 

Saint_Ward

The Great Eye is ever Watchful
Staff member
Administrator
Gold VIP Contributor
Joined
Mar 1, 2007
Messages
42,277
Reaction score
34,920
Location
Fort Lauderdale, FL
Offline
I'm not sure where she files but CA and NY both have state income tax at about 8.5%, so added to 37% federal, it puts you at 45%. It's common for people to consider their total tax liability as paid to the IRS, even though there's a state component to it.

Also, if she's looking at total with-holdings on a check, there might be other federal elements to it (social security, medicare) that she's just lumping in - or possibly self-employment (I'm not sure how she's getting paid). But all of that pushes the federal liability up and lots of people just consider that tax even though it isn't accurate.
Maybe it just shows that celebrities, or people, don't have to be that smart or understand nuance to make money or have an opinion.
 

Zztop

Hall-of-Famer
Joined
Apr 8, 2012
Messages
4,685
Reaction score
6,306
Offline
Bill Gates says tax policies like Alexandria Ocasio-Cortez’s are ‘missing the picture’

Gates also said that the world’s wealthiest people only have a “rounding error” worth of actual income compared to their wealth — they don’t have a lot of salary, but instead sell stocks and other assets to raise cash, which isn’t taxed as income anyway. The top 400 earners in the US are only paying something like a 20 percent tax rate, he pointed out. “It has nothing to do with the 39.6 percent marginal ordinary income rate. So it’s a misfocus. If you focus on that, you’re missing the picture.”
 

superchuck500

tiny changes
VIP Subscribing Member
VIP Contributor
Diamond VIP Contributor
Joined
Aug 9, 2004
Messages
45,905
Reaction score
60,322
Location
Mt. Pleasant, SC
Online
Bill Gates says tax policies like Alexandria Ocasio-Cortez’s are ‘missing the picture’

Gates also said that the world’s wealthiest people only have a “rounding error” worth of actual income compared to their wealth — they don’t have a lot of salary, but instead sell stocks and other assets to raise cash, which isn’t taxed as income anyway. The top 400 earners in the US are only paying something like a 20 percent tax rate, he pointed out. “It has nothing to do with the 39.6 percent marginal ordinary income rate. So it’s a misfocus. If you focus on that, you’re missing the picture.”
But also notice what he said approvingly: "“But we can be more progressive, the estate tax and the tax on capital, the way the FICA and Social Security taxes work. We can be more progressive without really threatening income generation.”

He seems to be saying (and this dovetails with the 400 thread) that ordinary income tax brackets aren't all that effective at slowing wealth disparity - there are more effective means such as the estate tax and a "tax on capital".

But at the same time, I'm not going to pretend I know more about wealth than Bill Gates, but I have seen 8-digit portfolios and they do generate substantial ordinary income in the form of interest payments on fixed income and dividend payments from high-yield stocks. That may not be how wealthy people "raise cash" but it's certainly meaningful.
 

mt15

Subscribing Member
Staff member
Super Moderator
VIP Subscribing Member
Platinum VIP Contributor
Joined
Mar 14, 2006
Messages
12,792
Reaction score
17,191
Offline
If I were trying to reconfigure our tax set up to help with income disparity, I would confer with Bill Gates and Warren Buffet. I feel like these guys get the concept of where we are heading and would have valuable insights on how to remedy the tax situation.
 

B4YOU

All-Pro
Joined
Mar 17, 2017
Messages
2,327
Reaction score
3,026
Offline

mt15

Subscribing Member
Staff member
Super Moderator
VIP Subscribing Member
Platinum VIP Contributor
Joined
Mar 14, 2006
Messages
12,792
Reaction score
17,191
Offline
Didn’t those just get lowered by the Republican tax bill?
 

sfidc3

Pro-Bowler
Joined
Mar 14, 2015
Messages
1,411
Reaction score
1,550
Online
I think there is a lot of merit to this.

I think a perfect illustration of the inequalities of the flat capital gains tax and how it applies to the very wealthy and then to the average working man who may be lucky enough to be able to invest some of his money on a regular basis.

The very wealthy typically claim no working income, meaning they will only ever pay 15% capital gains tax on profits (money made) on their investments. The average working man (in this example has to withdraw the whole of his investment due to an emergency or catastrophic life event) will pay 15% capital gains on money made plus that same money can (and often will) blast him up into a higher income tax bracket, meaning he will wind up paying as much as 25-30% on that same money made. In what world is that fair?

I use this example to illustrate the very wealthy not relying on ordinary income a much as the rest of us and can more easily shelter wealth (or just money period in our case) to avoid taxes. The reason for this, of course, is because the tax codes/laws/policies are mostly written/influenced by the very wealthy.

If they structured the capital gains tax similarly to the way ordinary income is taxed it would be at least "fairer". The argument to do so would center around the unintended consequences of said fairness...But I see absolutely no reason why a multi-millionaire shouldn't be paying more in capital gains tax than the average working man.
 

V Chip

Truth Addict (aww ^&%$ I got a head rush)
VIP Subscribing Member
VIP Contributor
Gold VIP Contributor
Joined
Aug 14, 2001
Messages
12,785
Reaction score
16,741
Age
51
Location
Close enough to ATL to smell the stink of Falcons
Offline

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Thread starter Similar threads Forum Replies Date
Heathen Saint Political Discussion Board 23

Similar threads




Headlines

Saints Headlines (Official Site)

Top Bottom