Recent studies have shown that in the free market, money tends to flow in the direction of the rich rather than staying neutral.
This creates an inequality where if you have money, you are likely to get even more and if you don't, you won't.
There have been propositions to increase the tax on the super-rich in order to keep the free market free. This would also mean that below a certain point taxes would be almost non-existent, thereby giving smaller local companies the developing edge over the corporate giants.
Income should not be taxed so heavily, as income is easily tracked via payroll scrutiny.
However, capital gains income is breaking the game. The extremely wealthy are skewing the market in their favor by funneling their capital through the speculative market and out of the nation.
This income should be taxed at the highest level.
Capital accumulation results in economic instability and eventually violent revolution.
The disappearing middle class will eventually cause the destruction of our economic system, if we do not take steps to prevent further erosion.
Take France for example, they taxed the rich and they literally moved to another country, then they continued business and weren't taxed. Plus they were no longer putting money into the local markets. It didn't benefit them and the US govt is expensive so that would just be wasted money.
GE and other huge corporations don't pay taxes. There's no reason to believe that individuals won't just hire lawyers to find ways to skirmish around this particular concept in America or American-like tax systems. You wouldn't be able to make it stick and furthermore you'd just hurt what little you actually get from the wealthy.
An 80% tax would essentially make it so there are no rich people. As much as a lot of people hate the rich, they are essential. If a CEO made 2 million a year, then they'd take home $400,000. Four hundred thousand is a lot of money, if you are working a job that is worth 2 million, for 80% less, then you're not going to work that job. A rational person would either quit or move to a different country. Like someone else said, France is a perfect example
That's simple too much. The more money a person has the more likely the are to become an entrapenuer and take risks. They do that they create jobs for the economy. Taxing them that much will decrease that chance and make it more likely that they are going to be more greedy with their money and not want to spread around the wealth.
One could argue that the super-wealthy hog most of their money and keep it hidden. It has been proven that so called "trickle down" economics do not work, therefore we need to raise tax rates on the rich. However, 80% would be way too much. I agree that a person can only have so many yachts, but this needs to remain a country where the legitimately successful can keep most of what they make.
I understand why people would suggest that the wealthy deserve to pay more in taxes, but I think that the logic of this is often misrepresented. Taxing the wealthy, simply because they have more is essentially a form of economic discrimination. Someone shouldn't have to pay exponentially more to the government simply because they make more money than another. 80 percent especially seems unreasonably, extravagantly high. A flat tax, in my mind, would be a good option to explore, as it would require varied amounts based solely on personal income, with no outside factors.
If you look at history, especially at Socialist governments throughout Europe, who have imposed ridiculously high tax rates for rich people.
1. This actually reduces tax revenue because of the increasing globalised world we live in which means the rich people will just simply leave the country.
2, It will hurt the economy because the employers and wealth creators will leave that particular economy. Also, if one were to believe in Trickle-Down economics it would further hurt the economy.
I believe in a progressive tax system, but an income tax rate of 80% would have an unprecedented, detrimental effect.