Let me explain it too you in GW Bush speak so you understand.
Rich billionaire makes 100 million a year doing whatever.
The little ole socialist in me comes along and snatches say 3/4 of it, i’ll make the math simple so as not confound you.
Billionaire is left with 25 million. Is he going to suffer?
I don’t think so.
Now I take that 75 million and start investing and or subsidizing, renewable energy and our electrical infrastructure, Fission energy development etc.
We start training Joe six-pack to work on this 21st century renewable energy infrastructure. Employment goes up, wages go up and as a result that people are making more money.... they’re spending more money.
Is this good for the economy? Yes it is.
Is this good for the billionaire? I don’t see how it’s not. If the economy is going up and people have more money to spend he can’t BUT HELP make money lest he’s an idiot like Trump.
We can build a green economy for the 21st century. It’s not socialism. It’s just common sense. We just move money we’re spending on old polluting technologies and move it to the green side.
A simple first step?
Institute a carbon tax.
And then raise taxes on the wealthy. They’re not going to miss it and they’ll get it back on the back side of our new economy.
People who make money are not solely in it for the money. Money is just a measure of success.
So you invest all your hard earned money, spend a lifetime creating your product or service, and now you make 10 million a year.
You say the federal government should take 7 million a year. Now what about state and local? That's easily another 15% So now you make 10 million a year, and you end up with 85% of your money confiscated by various governments. Out of that 10 million, you only get 1.5 million depending on your local and state tax rate.
So the question that comes to mind is, was it worth taking all those risks, working all those hours, traveling all over the country or even the world, only to have government take almost all of your money? Would you even go to work tomorrow if you knew you are only going to get 15% of what you earned?
The link I provided earlier explains it best. The wealthy cannot support this country and spending yet alone add trillions more in free college, global warming, and Medicare for all. Read it! The rich have no ability to support all that.
If the federal tax rate were 0%, the federal government would collect 0 dollars. If the federal tax rate were 100%, the federal government would still collect 0 dollars because who would be stupid enough to create wealth?
"Just how much is YOUR fair share of what somebody else worked for?"
Thomas Sowell