Ray From Cleveland
Diamond Member
- Aug 16, 2015
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The 70% rate is for the rich, a top federal rate, because even at such rates, the rich do not change their level of consumer spending. It does not hurt the economy and brings in much needed money for the treasury.You are really confused about this. . You need to understand the concept of reading comprehension.
I said combined cost of government. That includes State and Local, which combined with Federal is about 40% of the friggin GDP.
This country spends more money on the cost of government than the GDP of all but the top four richest countries in the world according to the CIA Fact Book. That is despicable! If you only count Federal government it only adds a couple of more countries to the list.
When you look at the direct and indirect cost of government to Americans you see that it is usually the highest household expenditure even if you are in the group that doesn't have to pay into that filthy ass income tax. No wonder Americans have such a difficult time meeting ends.
I am retired now but when I worked as an Engineering Director and my wife was a teacher the combined indirect and direct taxes for my household was about what my wife brought home in pay. In other words we had two working adults and the salary of one was needed just to pay the frigging taxes. Talk about despicable.
Even now in retirement our combine direct and indirect cost of government is an enormous household expense every year.
If you think the shithass government is entitled to 70% of a person income then why don't you be a sport and give the government 70% of what you make? Put your money where your mouth is for a change? I suspect being a greedy Moon Bat you don't want to pay that amount but you want others to do it.
If you take money away from the investors and job creators and give it to the welfare queens and Illegals guess what? You have no more investment and job creation.
I will agree to return to that 70% tax if you idiot Moon Bats agree to limit the combined cost of government to what we had when we had those rates.
By the way, it was JFK that changed those rates. Isn't he the darling of you Moon Bats? What did he get wrong?
The top federal tax rate was still above 70% under JFK, Lyndon Johnson, Richard Nixon, Ford, and Carter. It did not start to come down from 70% until Reagan entered office.
Total Federal outlays as a percentage of GDP were 20.8% in 1976. The top federal tax rate at that time was 70%.
Total Federal outlays as a percentage of GDP were 20.8% in 2017. The top federal tax rate at that time was 37%
You and your wife are middle class and would not be impacted by the top federal tax rate of 70%.
The reason you don't want the lower class and middle class paying a 70% tax rate is because it hurts consumer spending and the economy. The 70% rate is for the rich, a top federal rate, because even at such rates, the rich do not change their level of consumer spending. It does not hurt the economy and brings in much needed money for the treasury.
Its not about what you think is fair for a particular individual, its about what is the best way to maximize economic growth while also maximizing revenue coming into the treasury. You accomplish that with a progressive tax structure where much of the burden is placed on the rich, while the lower class and middle class are protected.
How much is it going to bring in for the Treasury?
It's not going to being anywhere near the extra revenue that the Lib/Dems think it will. They do this every single time, linear math just does not work and never has when it comes to raising marginal tax rate for the simple reason that nobody wants to play that ridiculously high rate and so they invest their money in ways that avoid paying anything close to 70%. Or they move their business and investments overseas somewhere. Time after time, country after country it has always played out the same - you NEVER get anywhere near the revenue you thought you would get, but you know what? Most of the lib/dems don't care, cuz for them it ain't about revenue, it's about mother fucking fairness. Obama admitted it, he'd raise rates on the wealthy even if it didn't raise an extra dime of revenue. They don't give a shit about the economy, they don't care about the impact on jobs and growth.
Look at Sweden in the 80s, look at Britain when they raised their rates, look at France what, 10 back or so, they raised rates and it didn't work. We've seen it here in the US, when states raise their marginal income tax rates, the rich guys leave for someplace else. The rich guys IN EVERY CASE said fuck you, I ain't paying that and they left or they changed their investing and the economy suffered as a result. So here's the reality: would you rather get $20 if a rich guy gets $80 or would you rather get $10 if the rich guy only gets $40?
As I pointed out earlier, federal taxes are not the only taxes the rich pay. If you take 70% of their income just for federal, think of the total after they pay state, county, and city taxes. They'd be paying somewhere between 85% and 90%. Who would work for only ten or fifteen percent of the money you make?
The top federal rate kicks in on earnings made after a certain point, like $10 million dollars. Money made in the first $10 million is taxed at a lower rate. Worked just fine from 1945 to 1980 when the top federal rate was above 70% every year. In the 1950s it was above 80% every year. In 1951 the top federal rate was 92%.
And when Ronald Reagan realized those rich people were leaving the country and taking their jobs with them, he had to do something. So he lowered taxes to make it more inviting for them to stay in this country. Travel was becoming safer, technology was becoming more advanced, and rich people had less reason to stay here.
What you want to do is reverse everything he did that put this country back on track. What you’ll end up with is the same problem he had when he first became President only worse. I don’t care how bad people claim the last recession was, it was nothing compared to what took place in the early 80’s. I lived through both of them. At least in our last recession you could get a Burger King job. You couldn’t get one in the Reagan recession.
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