The logic of tax cuts on the rich.

[Jack V Savage]

There have been two pretty good posters who used to think somewhat like Greoric who changed their tunes after actually pursuing degrees in finance (one of them--Lee978--had been praised by the guy before he got educated).

 

[panamaican]

There have been two pretty good posters who used to think somewhat like Greoric who changed their tunes after actually pursuing degrees in finance (one of them--Lee978--had been praised by the guy before he got educated).

I was just thinking about him, Lee978, and CC's left foot was the other I believe. Greoric is awful in comparison.

 

[SaiWa]

For such a vocal person about the economy, he knows very little about how it works.

or how to properly use mathematical principles in an argument.

what do you expect from a lowly RN? he should stick to threads dealing with medical issues IMO. if I need to know the most efficient way of changing an elderly's diaper he would be the ideal subject matter expert...

as one of the greatest basketball of all time (Lavar Ball) once said "STAY IN YOUR LANE!".

 

[Jack V Savage]

I was just thinking about him, Lee978, and CC's left foot was the other I believe. Greoric is awful in comparison.

I had another one in mind, but I don't know if he'd want to be mentioned. Lee changed his name (and I won't say what it is) so I think it's OK.

 

[ScottE]

If you are clueless on economics you thought would make sense. REALITY would say you are DEAD WRONG!

If you tax the rich they will put their money into tax free securities and such. If you don't give them higher taxes they put money in the market and make some moves and new products and businesses are put into play.

Before Trump, there were 4 times we did across the board tax cuts. The RESULTS ALL 4 TIMES was the government COLLECTED MORE TAX REVENUE and the economy kicked ass.

See how your logic is absolute shit?

But don't take my word, take the word of a famous economist and TRUMP HATER!

Watch this short video, learn something, be less stupid

What tax free securities do you think exist? Even adjusting for the taxes the simple reality is that tax free investment options don't outpace the return on investing in the market.

 

[MASShole]

What tax free securities do you think exist? Even adjusting for the taxes the simple reality is that tax free investment industries don't outpace the return on investing in the market.

Well, there are muni bonds, but guess what? Those go into the local economies to spur construction, local support, etc. Go ahead and buy those and help locally, I say!

 

[Scheme]

High tax rates on the rich creates disincentives in working longer and harder, investing, and creating/running a business. If a business can't be profitable at a higher rate then it will simply shut down, resulting in a loss of jobs. Alternatively it could cut costs to compensate, resulting in lower wages and less re-investment into the company. Also the government is inherently wasteful with how it spends money.

Ultimately the quality of life of a country is determined by the productivity of the average worker. If there are less incentives and opportunities to be productive, then the economy slows down and the quality of life falls.

 

[aitkenmike]

I had another one in mind, but I don't know if he'd want to be mentioned. Lee changed his name (and I won't say what it is) so I think it's OK.

I miss Lee, those were fun threads. Also, I miss Greorics imminent crash thread from four or five years ago. Still waiting for that crash...

 

[Snackbar]

This is such a fake argument.
If everyone gets taxed 10% and one guy make 90 bucks and everyone else makes 10 bucks, the guy that makes 90 will be taxes 9 bucks and the guy that makes 10 will be taxed a dollar. So you are defending the 70% who make 70% of the money so rationally they should pay 70% of the taxes. I have always been in favor a flat tax. It cuts out your bullshit argument.

You do realize in a progressive tax system (you know, the one currently in place) the guy making $90 would pay $35 while the guy who made $10 would pay nothing right?

And you are correct a flat tax is the answer, tax every income at 25%.

 

[MiniCraque]

Paradox of thrift is the only thing I didn't include in my 1st 2 posts on this subject but, don't worry, sooner or later Greoric will show up to tell you that it's not true either.

It's why I opened with "for those interested in reading on the subject".

To clarify, "reading on the subject" goes beyond mises.org articles.

 

[Jack V Savage]

It's why I opened with "for those interested in reading on the subject".

To clarify, "reading on the subject" goes beyond mises.org articles.

The real problem with Austrianism isn't just that it is reliant on a lot of bad thinking; it's the bad meta lessons--that you can't learn anything about economic phenomena by looking at evidence and that having a perfect grasp of the subject is really easy (which implies that people who don't agree with you are monsters). Very much a cult.

 

[Squarechoke]

High tax rates on the rich creates disincentives in working longer and harder, investing, and creating/running a business. If a business can't be profitable at a higher rate then it will simply shut down, resulting in a loss of jobs. Alternatively it could cut costs to compensate, resulting in lower wages and less re-investment into the company. Also the government is inherently wasteful with how it spends money.

Ultimately the quality of life of a country is determined by the productivity of the average worker. If there are less incentives and opportunities to be productive, then the economy slows down and the quality of life falls.

Those disincentives aren't very strong given the way income escalates compared to progressive tax rates. We've also seen that earning tons of money often does not do anything for the workers. There are lots of big corporations that have minimum wage workers employed while they are reaping gigantic profits. That's on top of the workers getting pitiful amounts of vacation days, etc, which is definitely a factor in the quality of life.

The US has a progressive tax system and still literally has a wealth distribution in it's population similar to that of medieval Europe. If you have a system that creates the same imbalances as a feudal system you can't really with a straight face say that there's any disincentive to earn a lot of money.

The odd choice with the US now isn't just that it cuts taxes for the rich, despite the enormous wealth gaps, it's that the current tax plan actually increases taxes for the low and middle classes. That makes little sense to me, even though if I lived in the US the system would have benefited me.

 

[Judge]

What tax free securities do you think exist? Even adjusting for the taxes the simple reality is that tax free investment options don't outpace the return on investing in the market.

learn how to fucking google
https://www.investopedia.com/terms/t/tax_exempt_security.asp
"What is 'Tax-Exempt Security'
A tax-exempt security is an investment in which the income produced is free from federal, state, and/or local taxes. Most tax-exempt securities come in the form of municipal bonds, which represent obligations of a state, territory or municipality. For some investors, U.S. Savings Bond interest may also be free from federal income taxes."

Plus not sure why you are still talking about this shit. I already proved everything that needed to proof in my previous post.

 

[ScottE]

learn how to fucking google
https://www.investopedia.com/terms/t/tax_exempt_security.asp
"What is 'Tax-Exempt Security'
A tax-exempt security is an investment in which the income produced is free from federal, state, and/or local taxes. Most tax-exempt securities come in the form of municipal bonds, which represent obligations of a state, territory or municipality. For some investors, U.S. Savings Bond interest may also be free from federal income taxes."

Plus not sure why you are still talking about this shit. I already proved everything that needed to proof in my previous post.

Are you just that dumb to not realize that even adjusting for tax rates all of those tax free securities you just Googled don't have high enough rate of returns to be attractive Investments.

Even prior to the tax cuts municipal bonds were only attractive to a very limited subsection of investors, and only for the portion of their portfolio allocated to bonds (which for active investors isn't going to be a large portion of their portfolio). You can beat the ROR on Muni Bonds with CDs, even accounting for the tax savings.

So again what tax free securities do you think exist that are going to offer an investor enough return to dissuade them in investing in other securities that have a substantially higher effective (aka adjusted for taxes) rate of return?

Are you that financially illiterate?