http://money.cnn.com/2015/05/21/news/economy/worst-inequality-countries-oecd/index.html?iid=SF_River There was an example in the video about a high school teacher adding less economic value than a top CEO. I'd argue differently. A good education system, IMO, is one of the best things we can do for our economy. I think most of us would agree on the causes of the gap, but what's going to be the fix?
Probably a lot will disagree with me but its taxes on the wealthy. Through the 40's 50's and 60's the tax rate on the wealthiest Americans was in the 90 percent range. Most paid around the 50 percent range however. Look at it now it's in the 30's but most pay in the mid to high teens. Not to mention wages for middle to lower class haven't gone up with inflation either and all this during a time when the wealthiest Americans are doing better than at any point in history. I don't mind paying what taxes I have to pay but the rich shouldn't pay a lower percentage than I do. I also don't think the politicians in the state or fed spend our tax dollars correctly.
Decades of tax laws favoring the rich can only be addressed by tax reform. People who make their income by investing should be paying the same taxes as those who earn income through salaries and business profits. Inheritance taxes need to come back and be taken seriously. Sales taxes need to be reduced and income taxes raised progressively. Finally thousands of tax credits, deductions, write-offs, and other tax avoidances should be scrapped.
Like most of what you listed especially the carried interest rule for hedge funds. That is thievery pure and simple. I'm less fond of inheritance taxes. Yes they are needed but must be limited. Likewise many tax credits and things like investment tax credit and depletion allowances have a real purpose and value. Reform is the key as you said.
So pops invest or saves his money and pays taxes on it, then when he dies and leaves it to his children they should have to pay taxes on it as well? We should change your name to "blue"
Nope! Wrong, for several reasons. First of all, It's not fair. Salaried workers are not putting their capital at risk like investors and I'm not talking about business profits which are taxed differently. Second, if you tax capital gains like ordinary income you take away the incentive to invest, which would put a drag on the economy. Obama is moving in that direction though. The top rate on capital gains is now over 20 %. There are a couple of things though right off the top of my head. Stock options awarded to top executives as compensation should be taxed as ordinary income, as should outright stock awards. Another indirect way is to lower the cost of a college education. College tuition is way too high and students leave College with a debt load that takes them years to work through.
I see somebody mentioned inheritance taxes. I go with that. Heirs should be left with enough to do something but not enough to do nothing except maybe run for public office for goodness sake.
Well OK, a good argument, but do we want a nation of privileged elite at the top and an underclass at the bottom. That's what this thread is about.
I think the rate of inflation is a huge problem. Yes, salaries are higher, too, but the rate of inflation since the 1970's is absolutely out of control. Even since the 1990's, it's ridiculous. As for taxes? Just do a flat 20% (or something) for every American with no deductions, etc. But the government will never do that because they employ too many people to deal with the complicated system we have.
Yeah I don't get that either. Not sure why people would think someone/someone's kids should be penalized in that scenario. Then when it's spent, it's taxed again. 3X.
