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Trivial Einstein

My "actually tax the rich" plan is often criticized by people who don't understand taxation. See, they think, "If you tax the rich at a top marginal rate of 95% then after a couple of years you won't have any rich people anymore," because they've been getting AEI's mailers. No, you simple people, if I tax the rich at a top marginal rate of 95%, they just won't get richer quite as quickly because, all together now, INCOME TAXES TAX INCOME NOT POSSESSIONS. It's right there in the name.

We could tax the ever-living fuck out of rich income and those bastards would still be just as rich as they always have been. In fact, since, repeat after me, THE TOP MARGINAL RATE ONLY APPLIES TO INCOME WHICH EXCEEDS THE TOP MARGIN, their total income wouldn't even be taxed at that rate, which is, again, literally in the name. So they could make a buttload of money which would be taxed at a lower rate, and only income which exceeded a fairly ludicrous amount would be taxed at close to but not 100%.

How is this even something that I keep having to debate with people who are in so little danger of having their income taxed at that rate that they might as well be just as poor as I am for all the effect it'll have on their lives? I promise you, the ultrawealthy are not going to pay you to defend their wealth. You're not a tax lawyer or politician.

Now, I also happen to believe that we should seize rich people's property and distribute it to the poor, but that's not a tax plan and that's basically what you fucking temporarily-inconvenienced millionaires are forcing me into because you don't want a fairly modest proposal with regard to income taxes. Seriously, I get that you think I'm being unreasonable, but it's getting to the point where it's my plan or guillotines. I'm not advocating guillotines, but you're forcing the issue.

Meanwhile, the ultrawealthy are laughing their asses off at you. You don't even understand how taxes work. You're not going to get rich that way. And you should probably look up what happened to the middle class after the Russian Revolution. I'm not threatening you, I'm warning you: people don't stop eating the rich once they get a taste for it.

@intransitivelie I worked for a tax software company, as the trainer for our seasonal contractors, and I literally taught them way more than they needed to know about how the marginal part of that name works so they would know they were being deliberately lied to by the rich.

@KindlyWizard
Yeah, people just don't realize how the tax system works and think that they're in danger of having to pay a tax rate that they are in no way going to have to pay. It's the same with inheritance taxes: call it a "death tax" and watch the poor vote against their own self interest. Sigh. I'm not even a tax expert.

@intransitivelie
Honestly, I'm all for taxing billionaires out of existence. That much wealth concentration is inherently destabilizing and destructive.

@tofugolem
I'm right there with you, but if we can't even get people to agree to taxing income in a fairly straightforward and reasonable manner, I suspect that the only way we'll deal with billionaires is through extra-taxational means, which grow more and more attractive the worse things get.

@tofugolem @intransitivelie

We need taxes on wealth, too. Ten percent of every billion owned every year.

@intransitivelie Most of the ultra-wealthy don't receive much in the way of income, at least not much compared to their wealth. It usually comes from capital gains, which is an entirely different tax rate.

@Lightfighter
This is true, but only because we have a deeply broken tax system. And we still don't tax the wealthy fairly under our broken system. We could correct both those problems and I fear it wouldn't fix the wealth inequality which is driving social unrest, but it would be better than it currently is.

@intransitivelie Yes, absolutely. The whole system is a mess and needs to be reworked from the ground up.

@intransitivelie Wealth tax used to be a thing, and should be a thing again.

@intransitivelie let's start with the fact that most Americans do not understand basic math, as this story snopes.com/news/2022/06/17/thi vividly shows. And you want to explain marginal rates to people who think 1/3 < 1/4…

Snopes.com · Did Third-of-a-Pound Burger Fail Because People Didn't Understand Fractions?By Bethania Palma

@blotosmetek
I never said explaining marginal rates was easy. That's why flat tax grifters constantly get traction: a flat percentage may be regressive, but at least it's easy to explain. Unfortunately for flat taxers, in order to make flat taxes actually work in the real world, they have to be saddled with so many exceptions and loopholes and extra cruft that they're no less complicated than our current system, and far more complicated than a simple progressive marginal tax rate would be. That's partially down to the realities of the world and partially down to politics: people with power won't support a flat tax which doesn't privilege them to the same or greater extent than the current system.

I think any explanation of a system of taxation starts with transparency and simplification. If you can go to a website, put in any income number you feel like, and get a hypothetical number which is close to what you'd pay given that income and no special circumstances (of which there are currently far too many) you don't need to be a math wizard. Better would be a place where you can compare what you'd pay under several systems, to show that, for instance, a flat tax isn't as desirable to the poor as it might seem.

But all this runs up against two big problems. One, there is no money in simplifying the tax system, and a great deal of money in complicating it and keeping it obscure. Tax preparation companies are firmly opposed to any efforts to make filing taxes simpler under the current system. They're even more opposed to simplifying the system itself, because they make money from the complexity. But that's not taking into consideration the many other rich people and companies who benefit from a complex system which privileges them. This problem is systemic but soluble, and indeed must be solved in the macro because the power of money in politics in general is currently killing the world.

However, number two is much, much harder. You think that people's lack of math education is what's keeping us from changing the tax system, but it's much bigger than that. What's central to the problem is that people who understand the math still don't support taxing the rich because they believe they are, or could become, rich. That's not an issue with math literacy. That's an issue with "the American Dream" or whatever you want to call it (I hesitate to ascribe it purely to Americans because I've heard other countries experience the same thing to greater or lesser degrees). And that's not a problem to solve, that's a failing of the system itself. It's intrinsic to the system. You can't excise it without fundamentally altering the system.

At which point, why worry about taxes? Good question. I'll leave it to my learned colleagues of socialism, anarchism, and communism to debate. For me, the problem can be approached without being finally resolved until we get to the point where solution is more likely. That begins with telling people, persuasively if perhaps reductively, about the benefits of actually taxing the rich. People generally like government programs when they actually experience them and aren't taught not to like them by right-wing propaganda. Economic policy which is actually beneficial to people who aren't rich is widely popular when it's tried. I'm not talking about rabid leftist proposals like Universal Healthcare (a wild idea which is currently practiced by nearly every other country in the world). I'm talking simple stuff that we already do, just funded properly by taxes on the wealthy.

At any rate, you're correct that math literacy is a problem. That's why I generally shy away from presenting people with charts and graphs and equations which, though in the interest of transparency, are opaque to most people. Elsewhere in reply to someone I said that I think we need graduated levels of explanation, from the simplest which would be a box into which you put an income and get a tax bill back, to a basic explanation of how that number was arrived at, possibly with comparisons, to equations, charts, and graphs, and everything in between. As there's no money in doing this, I don't expect it to happen, but it would be nice to stop having to explain marginal tax rates to people who should know better than to stan rich bastards in my mentions, at least. That's not addressed at you at all, that's just my frustration talking. Sorry for the long-windedness of my reply.

@intransitivelie @blotosmetek

Ah yes, they like gov programs, like ACA and medicare. They just hate Obama care. And old people living of their pay check. An educated electorate is a dream without decent schools.

@oldoldcojote @blotosmetek
Which is why we have to give them what they don't know they want without asking them for permission, I guess.

@intransitivelie one of the many problems is that the super-rich don't have income. They borrow against their assets, and spend that. Because it's a loan it's not income, and the interest they pay counts against any income they get from interest received on investments.

We need to tax Capital Gains (especially speculative gains) at 90%+, and Inheritance, and wealth.

We could leave income tax alone if it's too hard to explain.