No one paid the insane income tax rates of the past, the rates the economic totalitarians, AKA “socialists,” look at longingly these days, because the tax code was full of legal dodges.
Guess what folks? Here’s a secret. Many people who are “rich,” and I am not talking about the people who buy 7 series BMWs and Mcmansions, but people who are actually RICH, often don’t make much income. They are RICH. They have their money in investments etc. and the “income” that is thrown off of these investments is typically taxed at a much lower rate. Mitt Romney is a famous example of this.
Not only this, the “rich” often have access to tax avoidance schemes that everyday people can’t access.
No, it is the small business people (and others in the industrious classes) who get hammered when the marginal rate is increased. It is the people who often are the heart of Main Street economics who are hurt. These people then have less money to invest in their businesses. Which then means they can’t hire and innovate to the degree that they could otherwise.
The bureaucrats in the government like the (short lived) new revenue though.
Seriously, someone needs to school Ms. Ocasio-Cortez on the Laffer Curve. It’s a hugely important concept that many big government people just can’t seem to understand.
For the sake of the country, someone on her staff needs to sit her in a chair and force feed this simple, informative, and short video. If after she watches the video she STILL advocates for the rates she’s advocating for now then we will know that she is either dim, or dishonest, or possibly both. (We’ll know for sure anyway.)
…when assessing the needed tax revenues, a green-energy initiative costing $7–$10 trillion over the decade should be examined in the context of $42 trillion in additional Democratic-socialist proposals that include single-payer health care ($32 trillion), a federal jobs guarantee ($6.8 trillion), student-loan forgiveness ($1.4 trillion), free public college ($800 billion), infrastructure ($1 trillion), family leave ($270 billion), and Social Security expansion ($188 billion).
Even if taxing the rich could finance a Green New Deal costing 4 percent of GDP — which I will show is not possible — that would use up all the plausible upper-income tax hikes that could otherwise address the remaining baseline deficits and new liberal spending initiatives that total 24 percent of GDP (an annual budget shortfall of $5 trillion in today’s dollars). The middle class would have to pay that remaining tab.
That last sentence is key. The MIDDLE CLASS WILL PAY. I don’t know about you but most middle class people would probably argue that they have enough bills to pay.