https://www.cnbc.com/2019/03/08/tax-collectors-chase-rich-new-yorkers-moving-to-low-tax-states.html Previously, the newly middle class worker would get squeemish at the idea of the uber wealthy - 8 figure plus annually - paying a fair share. They scream socialism at the idea millionaires should pay 40% instead of 0 as it reflects their own need to be a part of that system (which will never happen). They want to be rich through association and is huge reason why tax evaders , left & right, have gotten away effortlessly. Finally, the regulatory agencies are putting pressure where they need to be.
I don't have a problem with higher rates on the rich but it is the degree that matters. First, understand that in California the top tax bracket is over 50% when you combine federal and state. How much higher than that is fair? In principal, I don't like the idea that someone goes to work on Monday and doesn't get to start keeping their own money until after lunch on Wednesday. However, the uber rich like Gates and Buffett say they should pay more. So go ahead and hit the mega billionaires. Also, the proposed capital gains rates by some of the far left candidates will have massive negative consequences on our economy. According to Forbes, in 2017 20% of the stock market and 43% of the bond market were foreign owned. A country like the UK with all their social programs still only has a 20% capital gains tax except it goes to 28% on residential profits over 50k. If you start taxing "the wealthy" on capital gains rates at the same as ordinary income rates in the 40 to over 50 percent rates you will chase a lot of foreign investment out of our markets. They aren't Americans. Their interest in paying for our social programs is minimal at best. They are investing here for the returns. Not to fund free college. For example, if a billionaire from the UK has 1 billion in the US stock market and 300 million of that is capital gains profits, what do you think he is going to do? Pay the 60 million (20%) in tax under the Trump rules or hold it and possibly pay a tax over 150 million (54.2% top capital gains rate) under Bernie's tax plan? That sucking sound won't just be jobs leaving the country like Perot said. It will be money leaving our markets for greener pastures. You can't have a capital gains tax on the wealthy that is more than 2.5 times that of the UK. Also, I have a problem with this tax on stock trades. They claim the idea is to tax frequent traders. They already get taxed more because if they don't hold the stock for a year they pay regular income tax rates on the profits instead of 15 or 20% capital gains tax.
Thats not how it works. Income tax is a progressive tax. If we are going to get silly with analogy, its towards the end of the year when people are taxed the heaviest. Im not a fan of targeting wealthy people. The more money someone has, the more creative they can get to avoid paying the taxes. As the article points out, when you start squeezing the rats, they will flee. The wealthy will come to FL and TX. I love how Trump capped SALT taxes. For those who rabble and hate the idea simply because it targeted liberal areas, keep in mind $10,000 SALT cap (roughly) equates to a million dollars in real estate. If someone can afford to maintain a million in real estate, then I feel they can start paying a little more by losing that deduction. This was a tax break that favored the well off. Capital gains is tricky. If people are pulling in millions a year in capital gains, they should obviously pay more than 15%.
Wealthy people can hit the 50% tax bracket very fast. California's top tax bracket kicks in at a million dollars and the top federal bracket starts at 501k for a single person. If you make 20 million a year in income you are paying that 50% tax rate (state and federal combined) by the end of January.
You mentioned 1 of 4 states that pushes residents from 40 to 50, but this is about people who game the system and don't pay any of it. 1. Pretending not to live there 2. Wealthy have 4-5 separate streams of income, all taxed differently, some not at all thanks to tax loopholes meant to favor them. Gross vs net, dividends, capital gains etc. That is what is meant by the wealthy being "targeted".
No, $10K in SALT is on $90K of Adjusted Gross Income in NY. It's going to hurt a lot of people in New York - most painfully on the middle class.
The poll question is do you support taxing the UBER wealthy...... The whole thread is based on that hypothetical.
https://www.seattletimes.com/seattl...dream-of-an-income-tax-is-tantalizingly-real/ Are there middle class folks on here who think the super wealthy being taxed or a marginal tax on income above $10 million will affect them negatively?
Yes, because not only will the super wealthy get taxed more but the middle class will also. They can tax the income above $10 million all they want.
