Raising taxes should never be seen as a way to raise revenue. Even if the Laffer curve has come under attack, there is still some profit maximizing rate which I’m positive most modern countries are beyond both at a static rate and at a growth and future revenue maximizing rate. No we don’t tax at this point to increase tax revenue. We do tax to shape what society looks like.
Right now society doesn’t look very good to so many people in the US it’s almost hard to talk about. Job growth is literally people saying, “hey, tomorrow, I can see it look better. We can spend time and resources to create something we all want more than today.” When job growth is low, that vision must also be low.
Taxation can turn that around in an industry. It can turn that around in aggregate. It does thay by both signaling to players, and by changing the game tree payout structure.
I think much of the taxation conversation right now is unfortunate because it keeps getting couched in terms of tax brackets, and that is almost a strawman at this point (even if many people think it’s important). I would say we need to tax the 1% differently. For instance, stock buy backs are currently a hugely distorting effect on the world economy. You can start by greatly taxing that.
The real thing people are talking about when talking about taxing the 1% isn’t just about tax brackets, it’s more about how taxes don’t materially effect people once they reach certain thresholds. It’s the same fundamental problem with traffic tickets. They are not proportional to general wealth so that means it’s a set of laws that apply less and less as one gains wealth which not only feels unfair, it is arguably a corrupting influence undermining the rule of law.
I am choosing not to get involved in a discussion about tax policy miniutiae as I am not an expert in any related way; instead, I wanted to provide factual context to the oft-repeated 'America was better in the 1950s due to the tax rate on the rich,' claim so folks might be able to better understand what they're attempting to say.
Right now society doesn’t look very good to so many people in the US it’s almost hard to talk about. Job growth is literally people saying, “hey, tomorrow, I can see it look better. We can spend time and resources to create something we all want more than today.” When job growth is low, that vision must also be low.
Taxation can turn that around in an industry. It can turn that around in aggregate. It does thay by both signaling to players, and by changing the game tree payout structure.
I think much of the taxation conversation right now is unfortunate because it keeps getting couched in terms of tax brackets, and that is almost a strawman at this point (even if many people think it’s important). I would say we need to tax the 1% differently. For instance, stock buy backs are currently a hugely distorting effect on the world economy. You can start by greatly taxing that.
The real thing people are talking about when talking about taxing the 1% isn’t just about tax brackets, it’s more about how taxes don’t materially effect people once they reach certain thresholds. It’s the same fundamental problem with traffic tickets. They are not proportional to general wealth so that means it’s a set of laws that apply less and less as one gains wealth which not only feels unfair, it is arguably a corrupting influence undermining the rule of law.