Thread: Tax the rich!
View Single Post
Old 10-18-2019, 08:44 PM
k9bfriender is offline
Join Date: Jul 2013
Posts: 11,564
Originally Posted by Omar Little View Post
Ah, so when the investor leaves his money in the business it funds growth, just as a shareholder in Amazon, Walmart, Netflix, Google, etc. their profits are used to fund growth within those businesses, which is still capital investment.
Are you under the impression that when someone sells stock, the company buys it back? That's not typically how it works, unless the company is doing a buyback, which it does when it has a ton of cash on hand, and nothing to invest it in.

In any case, that is why I favor going back to, and extending the long term/short term capital gains rates. I would put a punitive level of taxation on gains for securities held less than 6 months, and wouldn't actually give you benefits until you had held it at least 5 years, with additional benefits at 10 and 20. This would encourage more long term considerations, and discourage vulture capitalism.

But yeah, I only take from my company the minimum I need to live a rather frugal lifestyle, as every dollar I leave in is a dollar that is working for me. The tax code is favorable to that, as I am only taxed on my profits, only what I take from the company. If you increased taxes, that would not affect my plans at all.

Let me ask you, if the tax code stayed the same, except adding a new bracket at 1 million at 40%, one at 10 million at 60%, 25 million at 75%, 100 million at 90%, and 1 billion at 95%, would that change the way that you made any financial or employment decisions?

Originally Posted by Omar Little View Post
As normal, you completely missed the point.
No, I don't think so. You seem to think that just buying stock and raising its price is something that is good for the economy. The DOW is not the economy. The stock market is not the economy. The economy is consumer spending.

You are saying that without high stock prices, companies will not reinvest to increase their production. You have that entirely backwards. Without demand, companies will not reinvest to increase production. If a company has more demand for a product they produce than they are able to, then coming up with financing for expansion is the easiest of your problems.

We may run into a situation where there is not enough investment to meet the demands of the consumer, but that is a very rare situation, and it is very far from where we are now.

In order to have consumer spending, you have to have wages. So, in order to increase demand, you have to increase the take home pay of your customers. You cannot increase the take home pay of your customers by increasing your stock price.

Originally Posted by Urbanredneck View Post
Forgive me for moving this discussion in another direction - While I am in favor of raising taxes on the rich I dont see how it would be done seeing that the wealthy are careful to donate money to both parties and people like Hilary often give $150,000 speeches to business groups.

I also dont see how to tax the rich since so many of them keep their money offshore.
We still have the ultimate power of the vote. We are their bosses, if we actually agree on something, and hold them to it, they actually do have to do what we say.

And offshore accounts are not that big a deal anymore, as most countries have voluntary reporting, and if you use other countries, you get very scrutinized. It still happens, I'm sure, but it's only accounting for a small fraction of the available tax base.

Originally Posted by cornopean View Post
If we switched to a national sales tax, there would be no way the wealthy could avoid the tax and hence, no need to raise taxes on the rich. I support something like the Fairtax or a value added tax and the elimination of all other taxes.
I would go with a national property tax. Not based on the property, but on the owner. A progressive tax that doesn't kick in until you own somewhere around $5 mill in real estate. This is much easier to audit than money in an account or under a mattress, as real estate is hard to hide. It also has the advantage of reducing the hoarding of land for speculative use, which would help to solve the housing crisis.