Effects of taxing the top wage earners

[Zoomie1980]

I certianly agree. Raise taxes on folks making more than a million.

Those with earned income of over 1.4 million are so few that taxing their last dollar of income over 1.4 million would yield insignificant revenue.

people making that much are not getting the bulk of their income from wages.

According to CBO data from 2005, the richest 1% had an average income of $1.5m and earned 18% of all income. Seems signficant to me.

People in that income bracket make no "real" income so the tax revenue on it is virtually nil. Options, which make up a huge percentage of the income these people have, are not taxed until they are exercised. Warren Buffet only makes $100,000/yr of taxable income. But in many years, his portfolio returns hundreds of millions, very little of it taxable.

 

[Agnapostate]

People in that income bracket make no "real" income so the tax revenue on it is virtually nil. Options, which make up a huge percentage of the income these people have, are not taxed until they are exercised. Warren Buffet only makes $100,000/yr of taxable income. But in many years, his portfolio returns hundreds of millions, very little of it taxable.

Perhaps you could answer my comment that progressive taxation merely acknowledges the reality of the diminishing rate of marginal utility and is able to function as a component of liberal democratic capitalism's macroeconomic stabilization and maintenance of the physical efficiency of the workforce? Your colleagues weren't very successful with it.

 

[Zoomie1980]

People in that income bracket make no "real" income so the tax revenue on it is virtually nil. Options, which make up a huge percentage of the income these people have, are not taxed until they are exercised. Warren Buffet only makes $100,000/yr of taxable income. But in many years, his portfolio returns hundreds of millions, very little of it taxable.

Perhaps you could answer my comment that progressive taxation merely acknowledges the reality of the diminishing rate of marginal utility and is able to function as a component of liberal democratic capitalism's macroeconomic stabilization and maintenance of the physical efficiency of the workforce? Your colleagues weren't very successful with it.

I somewhat buy into that to a point....

 

[Agnapostate]

I somewhat buy into that to a point....

Then you're a staunch supporter of progressive taxation?

 

[Skull Pilot]

marginal utility is just another way of telling someone that they earn too much.

You don't need that income over 200K so the government will take it from you.

 

[editec]

The system is set up to reward capital and to encourage capital formation.

It is set up such that them what has gets more.

In order for that capital advantage to be so significant, workers wages must remain low.

Ergo, when it comes time to pay Federal taxes, something like 40% of the working poor pay no taxes at all, and the top earner end up paying a lot.

What some of you tools cannot seem to understand is this:

Expecting the working classes to really give a fuck if your masters have to pay much the taxes is ridiculous.

They make most of the money, of course, they have to pay the lion's share of the taxes!

If the superwealthy don't like it, they can leave.

But of course they won't.

They make so much money here, and get to keep so much of it, too, that there's no place in the world they're rather be.

 

[sealybobo]

marginal utility is just another way of telling someone that they earn too much.

You don't need that income over 200K so the government will take it from you.

Right, just like we say to people who make below poverty wages, "you need that money, so we WON'T take it from you".

So if you make $260K, you will pay a normal tax rate on the $250K, and an extra 3% on the additional $10K. So an extra $300 bucks.

Yes, the guy making $260K can do without the $300. What a cheap ass. So you don't want your hard earned money going to help poor people? And fuck hoping that you will donate to charity. Clearly you are a CHEAP ASS. This is just like the Republicans theory of tax breaks. Give the rich tax breaks and HOPE they do something good with it. Clearly they won't, otherwise this country wouldn't have fallen backward under GOP rule. More people went into poverty.

So we TAKE a little more from the rich to fund needed programs. You don't think they are needed? Of course we know there is government waste. Republicans use that fact to argue for lowering their taxes. But they never get rid of the government waste. I think they call that a straw man?

So, the effects of taxing the top wage earners are:

More money in the treasury
Less Debt
Surplus
Economy works
Body Armor for troops

The list could go on and on.

 

[editec]

Taxing the wealthy without FIRST closing the arterial bleeding wound that is FREE TRADE won't work.

They will respond rationally if we do.

And what is their rational response to ever increasing taxation?

To leave taking their capital with them, and to invest in third world nation such that they produce cheaply there, and sell dearly here.

I'm all for taxing fairly and progressively but simple taxes aren't the ONLY part of that dynamic at play here.

 

[jreeves]

marginal utility is just another way of telling someone that they earn too much.

You don't need that income over 200K so the government will take it from you.

Right, just like we say to people who make below poverty wages, "you need that money, so we WON'T take it from you".

So if you make $260K, you will pay a normal tax rate on the $250K, and an extra 3% on the additional $10K. So an extra $300 bucks.

Yes, the guy making $260K can do without the $300. What a cheap ass. So you don't want your hard earned money going to help poor people? And fuck hoping that you will donate to charity. Clearly you are a CHEAP ASS. This is just like the Republicans theory of tax breaks. Give the rich tax breaks and HOPE they do something good with it. Clearly they won't, otherwise this country wouldn't have fallen backward under GOP rule. More people went into poverty.

So we TAKE a little more from the rich to fund needed programs. You don't think they are needed? Of course we know there is government waste. Republicans use that fact to argue for lowering their taxes. But they never get rid of the government waste. I think they call that a straw man?

So, the effects of taxing the top wage earners are:

More money in the treasury
Less Debt
Surplus
Economy works
Body Armor for troops

The list could go on and on.

Yeah like creating jobs, I mean if small businesses have more capital they won't try and expand their businesses.....