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Forums - Politics - Stop Coddling the Super-Rich

Just write a check to the govment and shut the hell up.



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Ail said:
HappySqurriel said:
Ail said:
HappySqurriel said:
Ail said:
HappySqurriel said:
Ail said:

What I really don't understand is the whole republican logic around the fact that raising taxes for people that makes over 250k a year will slow job growth.

I mean it's easy. Who in this country makes over 250k a year ? The list isn't that long.

- Lawyers, traders, executives, doctors, salesmen( some not all by far), actors, professional athletes...

Most small business owners do not even make that least .

And last I checked very few of the people in that list are actually engaged in creating new business, they already have a well-paid job and are pretty happy with it......( executives affect job creation but based on the company finances, not their own pay or tax level).

So explain to me how the way those are taxed affect job creation?

In a logical way please...

 

PS : I'm going to come close to that 250k limit this year due to exercising a lot of stock options and I can tell you for sure I am not planning to create any job....

There are a few reasons ...

First off, you have capital flight. If you're paying a punitive tax rate in one jurisdiction and you can pay a lower tax rate in another jurisdiction odds are pretty good that you will move to the lower tax jurisdiction if you can. While you may not have been directly involved in creating jobs, the loss of your spending and investment in a region can dramatically lower job creation.

Secondly, most high income earners have significant control over their own earnings and the earnings of others. If you increase the tax rate on executives or even small business owners odds are pretty good that they will give themselves significant raises and make cut-backs elsewhere or increase costs on their services to compensate.


Seeing how US citizens are taxed based on their worldwide income I have trouble seeing in which juridiction they would be running too........( Mars ? Jupiter ?)


You do realize that people can move to other countries, right?

They can but are you aware that all US citizens are taxed based on their worldwide revenues ?

If you move to Russia as a US citizen you will still pay the difference between russia's taxes and US taxes to the US government if US taxes are higher. ( so basically if you move to a country with lower taxes your taxes will actually not be lowered..)

The only way to escape the US federal taxes is to give up your citizenship..........


... and your point is?

Americans are mostly descendants of individuals who decided to give up their citizenship to provide a better life for themselves and their children. Why wouldn’t someone who is facing punitive taxation to pay for the debt built up from buying other people’s votes decide to give up their citizenship to provide a better life for themselves and their children by moving to another country?

Before giving up your citizenship you have to acquire another one which is a lenghty process.( and have fun when you want to visit relatives in the US and have to be treated the way every foreigner visiting the US is)

Secondly US is the western country with the lowest tax rate so if you wanted to leave the US you would have to go to a non western modern country.

And most rich US citizens would balks at the notion of having to become a Jamaican or an Angolan citizen just to lower their taxes ( and whatever they would win in taxes they would loose in higher prices on most everything else, when the item they want to purchase is actually available....).

+ pretty much any job they are doing in the US would pay less in other countries, most people would rather pay 30% taxes on 250k income than 20% on 100k.......

So in practice this is not an available move to US citizens ( but is actually something done a lot more commonly in Europe due to ppls being taxed on soil income and not worldwide).

Oh and bye bye medicare and social security if you drop your citizenship and leave the country. And the fun part is that if you move to a country like France you will be screwed out french retirement too ( because it's based on having worked your whole life in France, not part of it). It's the same for a lot of Western countries by the way...


Actually, while tax as a percentage of GDP is lower in the United States than Canada, Canadians have a much more broad-based/fair tax system than the United States and high income Americans would already have decent tax savings by moving to Canada.



except you missed my latest edit where I added something in bold.

Here's the official text from the federal site about citizenship :

P.L. 104-191 contains changes in the taxation of U.S. citizens who renounce or otherwise lose U.S. citizenship. In general, any person who lost U.S. citizenship within 10 years immediately preceding the close of the taxable year, whose principle purpose in losing citizenship was to avoid taxation, will be subject to continued taxation.

 

The determinging factor to determine if you are trying to avoid taxation being whether you make over 100k/year or have a net worth of over 500k..

So nope, you will not evade ;)



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Ail said:

except you missed my latest edit where I added something in bold.

Here's the official text from the federal site about citizenship :

P.L. 104-191 contains changes in the taxation of U.S. citizens who renounce or otherwise lose U.S. citizenship. In general, any person who lost U.S. citizenship within 10 years immediately preceding the close of the taxable year, whose principle purpose in losing citizenship was to avoid taxation, will be subject to continued taxation.

 

The determinging factor to determine if you are trying to avoid taxation being whether you make over 100k/year or have a net worth of over 500k..

So nope, you will not evade ;)

I don't have to evade, I'm a Canadian and pay lower taxes than my equivalent American ...

I do find it interesting though, that progressives in the United States always call for Americans to follow Canada's example; but are completely unwilling to follow Canada's taxation or budgetary policies.



scottie said:
mrstickball said:


Your numbers are way off.

You can't multiply US population by 1% because the 'Top 1%' are actually income earners, and not among the entirety of the general populace.

How many people are actually in the 'Top 1%'? According to The Tax Foundation, an un-biased source of tax information, there are actually 1,400,000 people that filed and were in the top 1%. They paid $392 billion USD in income taxes, or 23% of earnings after all deductions were considered. Therefore, assuming the rest of your math is correct, the actual dent made would be about 20%, not 45%.

So when they say top 1% they mean "top 1% of those who earnt at least a single cent in the year'? I honestly did not know that. Regardless, I would still include 20% as a dent.


Its not even that. Its "1% that actually filed a tax return". In America, you do not need to file a tax return if its under a certain threshold (I believe its $15,000 a year or so).

And again, its assuming the rest of your math checks out. I didn't go through the rest of it.



Back from the dead, I'm afraid.

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HappySqurriel said:
Ail said:

except you missed my latest edit where I added something in bold.

Here's the official text from the federal site about citizenship :

P.L. 104-191 contains changes in the taxation of U.S. citizens who renounce or otherwise lose U.S. citizenship. In general, any person who lost U.S. citizenship within 10 years immediately preceding the close of the taxable year, whose principle purpose in losing citizenship was to avoid taxation, will be subject to continued taxation.

 

The determinging factor to determine if you are trying to avoid taxation being whether you make over 100k/year or have a net worth of over 500k..

So nope, you will not evade ;)

I don't have to evade, I'm a Canadian and pay lower taxes than my equivalent American ...

I do find it interesting though, that progressives in the United States always call for Americans to follow Canada's example; but are completely unwilling to follow Canada's taxation or budgetary policies.

so why did you waste one hour of my time arguing that higher taxes would lead to people leaving the country if you do not even live in the US ?

Canada has a VAT, nuff said, did you include that when you computed lower taxation ?

And finally the kicker is that Canada has higher capital gains taxes than the US for the affluents which makes it a big no-no for rich people.( 21.5% for the top bracket..).  My bad this is actually not correct, right now the capital gain taxes are equivallent..

And federal taxes may be equivallent to the US on income but state taxes are higher in Canada...

 

So just maybe the reason those people do not call to follow Canada taxation is because it is, well HIGHER.....



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Ail said:
osamanobama said:
Ail said:

What I really don't understand is the whole republican logic around the fact that raising taxes for people that makes over 250k a year will slow job growth.

I mean it's easy. Who in this country makes over 250k a year ? The list isn't that long.

- Lawyers, traders, executives, doctors, salesmen( some not all by far), actors, professional athletes...

Most small business owners do not even make that least .

And last I checked very few of the people in that list are actually engaged in creating new business, they already have a well-paid job and are pretty happy with it......( executives affect job creation but based on the company finances, not their own pay or tax level).

So explain to me how the way those are taxed affect job creation?

In a logical way please...

 

PS : I'm going to come close to that 250k limit this year due to exercising a lot of stock options and I can tell you for sure I am not planning to create any job....

in some years (not for a while), my Dad.

he is the owner of a painting business, one that paints mostly new residental homes. he employs around 7-8 painters. and as you can imagine that business is very hard right now, and fragile. with the housing market as it is now, its very hard for him to find work, but he does. he works twice as hard, for less.

but fortunately he is very productive and so are his painters, in fact his paint reps (the people that sell him paint) all thought he was a business twice the size because of all the paint he buys (meaning he gets a lot done).

who will raising taxes affect? people like him, small businesses will be devestated.

and a better question would be: how would raising taxes increase job growth?

at bolded: would you plan on creating any jobs if your taxes were raised?


From what you are telling us I somehow doubt that your dad is making over 250k over a year. So I don't see how raising taxes on people that make more than that amount would affect him. And remember noone is speaking of raising taxes on business, only on personal income, those are two different things...

As to your question, I woudn't create jobs if my taxes were raised, I woudn't create any if they were lowered, I'm just not planning on creating any......

I am happy with my current situation and I don't see the point of taking on more responsabilities and working more ( because creating more jobs will always entail a time commitment ).

You have to understand that in some ways most people that create jobs do not do so because they want their fellow citizens to have work. They do so in the end to make more money.......Seeing how I am happy with what I make and I don't plan on becoming a workalcoholic if my taxes were raised I would cut back on some spending and that would be it.

Why do people want more money ? To buy more stuff. Well stuff is overated at some point, I rather have time to enjoy outside of work than work like crazy, make a lot more money and in the end have very little free time and be unhappy ( I was an executive in a small software company belonging to a big software corporation 5 years ago. I was making 170k/year without including stocks and I decided I would rather be a software developer, work less and have more free time, I took a pay cut and I am actually a lot more happy now..., those stocks I am exercizing these days are actually a left over of that period..)

If you look at who creates business it's not the rich in most cases, it is people that actually have an idea and wants to make some money out of it.

Lary Page, Bill Gates, Steve Jobs or Marc Zuckerberg did not make 250k a year when they created their companies. And guess what they created the 4 most successfull companies of the last 35 years............. And if you were to raise their tax rate now, they wouldn't even notice it...

like i said my dad hasnt made 250k for a while now, i think the last year was 2006. but of course theres small businesses bigger than his who do make 250k.

also you answered your own question. what do you think happens when people spend less. thats right less jobs



osamanobama said:
Ail said:
osamanobama said:
Ail said:

What I really don't understand is the whole republican logic around the fact that raising taxes for people that makes over 250k a year will slow job growth.

I mean it's easy. Who in this country makes over 250k a year ? The list isn't that long.

- Lawyers, traders, executives, doctors, salesmen( some not all by far), actors, professional athletes...

Most small business owners do not even make that least .

And last I checked very few of the people in that list are actually engaged in creating new business, they already have a well-paid job and are pretty happy with it......( executives affect job creation but based on the company finances, not their own pay or tax level).

So explain to me how the way those are taxed affect job creation?

In a logical way please...

 

PS : I'm going to come close to that 250k limit this year due to exercising a lot of stock options and I can tell you for sure I am not planning to create any job....

in some years (not for a while), my Dad.

he is the owner of a painting business, one that paints mostly new residental homes. he employs around 7-8 painters. and as you can imagine that business is very hard right now, and fragile. with the housing market as it is now, its very hard for him to find work, but he does. he works twice as hard, for less.

but fortunately he is very productive and so are his painters, in fact his paint reps (the people that sell him paint) all thought he was a business twice the size because of all the paint he buys (meaning he gets a lot done).

who will raising taxes affect? people like him, small businesses will be devestated.

and a better question would be: how would raising taxes increase job growth?

at bolded: would you plan on creating any jobs if your taxes were raised?


From what you are telling us I somehow doubt that your dad is making over 250k over a year. So I don't see how raising taxes on people that make more than that amount would affect him. And remember noone is speaking of raising taxes on business, only on personal income, those are two different things...

As to your question, I woudn't create jobs if my taxes were raised, I woudn't create any if they were lowered, I'm just not planning on creating any......

I am happy with my current situation and I don't see the point of taking on more responsabilities and working more ( because creating more jobs will always entail a time commitment ).

You have to understand that in some ways most people that create jobs do not do so because they want their fellow citizens to have work. They do so in the end to make more money.......Seeing how I am happy with what I make and I don't plan on becoming a workalcoholic if my taxes were raised I would cut back on some spending and that would be it.

Why do people want more money ? To buy more stuff. Well stuff is overated at some point, I rather have time to enjoy outside of work than work like crazy, make a lot more money and in the end have very little free time and be unhappy ( I was an executive in a small software company belonging to a big software corporation 5 years ago. I was making 170k/year without including stocks and I decided I would rather be a software developer, work less and have more free time, I took a pay cut and I am actually a lot more happy now..., those stocks I am exercizing these days are actually a left over of that period..)

If you look at who creates business it's not the rich in most cases, it is people that actually have an idea and wants to make some money out of it.

Lary Page, Bill Gates, Steve Jobs or Marc Zuckerberg did not make 250k a year when they created their companies. And guess what they created the 4 most successfull companies of the last 35 years............. And if you were to raise their tax rate now, they wouldn't even notice it...

like i said my dad hasnt made 250k for a while now, i think the last year was 2006. but of course theres small businesses bigger than his who do make 250k.

also you answered your own question. what do you think happens when people spend less. thats right less jobs


that's the kind of thinking that got us in the mess we are right now.

Buy buy buy, spend spend spend, it's not a problem if you spend more than you make, we'll loan you money through credit cards and we'll let you refinance your house to get more money to spend .....

You can't in a sustainable manner keep spending more than what you make and sustain the economy forever that way...

Besides that kind of thinking gets you into debts when things are going well, so what do you do when there is a crisis ? You're screwed because while you should have been saving when the economy was doing fine you were spending to "sustain the economy". So now that things are bad you have no savings to tap....

It's the only country I know when somehow you are made to be felt guilty if you don't spend all the money you make.

 

Seriously, many are bitching about the federal debt but they aren't doing much better with their own finance. US households as a whole have 11.5 trillion worth of debts...



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Rath said:
HappySqurriel said:
Rath said:
HappySqurriel said:
kowenicki said:
Warren is a bit old now and sometimes it shows...

But he is spot on here.

I earn very good money and I pay tax to reflect this... but here in the UK the people who earn many millions per year pay the same tax rate as me... how is that reasonable?

There should be a rate of tax for extremely high earners, yes it wont raise that much in the grand scheme of things but it is about sharing the pain isnt it? Capital gains tax is even worse here... it should be tiered now and the limit raised to aid the less well off investor trying to better their futures. Not that capital gains are much of a problem in the current climate!!


Why should there be a higher tax rate for those who earn more?

In the western world today after you earn enough to cover your needs the money people earn is spent to buy a variety of luxuries. Why should one individual pay higher taxes than another when they're both spending this excess money on luxuries?


So I'm taking it your ideal form of taxation would be everybody plays a certain set sum of money to the government no matter what their income is?

I prefer a modified flat tax system ... Every individual gets a certain portion of their income being tax exempt because it represents the amount a person needs to cover their basic needs, and after that all earnings are taxed at the same rate regardless of how much you make. 

To put numbers to it, suppose $25,000 was tax exempt and after that everyone pays 25% tax. If you earned $25,000 you would pay $0 in tax and have a 0% marginal tax rate; if you earned $50,000 you would pay $6,125 in taxes and have a marginal tax rate of 12.5%; and if you earned $125,000 you would pay $25,000 in tax and have a marginal tax rate of 20%.

No deductions, no loopholes, no tax credits just a simple calculation that can be done on the back of a business card in 5 minutes and adequately protects people from paying taxes on money they need to survive.


I fail to see how your view is consistent. You say you disagree with the rich paying more for the same government services but then you support a flat tax that would mean that the rich pay more overall?

 

"I know you're joking, but I suspect the massive resistance to a flat tax scheme is that it makes it much more difficult to bribe people or buy votes ...

If you notice a large portion of social programs are pushed by people who effectively say (by calling for higher taxes for people who earn a higher income) that these programs are not worth implementing if they had to pay for these programs themselves. With the other reforms I would implement it would be very difficult to sell social programs that the majority of people would not be paying for.

Essentially, if it meant that the tax rate would be increased from 25% to 30%, I doubt many progressive politicians would get much traction selling a universal day care program; but, as long as they can promise to tax the rich or pass on the debt to your great grandchildren, in the current system progressive politicans can be remarkably successful because they can promise anything without thinking of the costs."

Actually a lot of the people supporting progressive taxation and the welfare programs they can pay for are amongst the people who will be hit hardest by the progressive taxation.


If that's true, then there shouldn't be a need for progressive taxation, since if those people truley believe that they could support said programs volentairly, and since they're in large numbers.

You wouldn't need government mandates welfare, beause most people would donate too such programs anyway.

Well unless there attitude is "I should be taxed more, but until I do i'm going to blow all this money on myself!"  Which somewhat comes off more a just a positon held as a selfjustifcation so they feel better about their selfishness.



Kasz216 said:


If that's true, then there shouldn't be a need for progressive taxation, since if those people truley believe that they could support said programs volentairly, and since they're in large numbers.

You wouldn't need government mandates welfare, beause most people would donate too such programs anyway.

Well unless there attitude is "I should be taxed more, but until I do i'm going to blow all this money on myself!"  Which somewhat comes off more a just a positon held as a selfjustifcation so they feel better about their selfishness.

Or simply that there political views are that there should be government run welfare and healthcare programs and that the government should use progressive taxation to fund it. Holding that belief and not donating to charity is not hypocritical or contradictory.