As Warren Buffett a year or two ago, the rich have never had it so good in terms of taxes. He has this statement: from a Charlie Rose interview: http://www.businessinsider.com/2008/10/warren-buffett-on-charlie-rose-never-seen-anything-like-this I agree with his statement that the rich have not had it this good in a long while. However, I don't agree with how the government screws up seemingly everything that they touch. I don't agree with giving the government more money to waste. This feeling is magnified when you hear about things like VAT, health care tax and a stock transaction tax all being considered. I would much rather the politicians raise the income tax directly, then institute a new kind of tax. At least they would be being upfront about it, rather than hiding new taxes in new places (VAT for example). As for the health care tax, if we are going that way as a nation, then EVERYONE should feel a little pain, not just the rich. The 5% tax for people who make over $250,000 is an abomination. If you are going to tax more for something, make everyone pay a percentage. You shouldn't get something for free. Now if the government were responsible and could pay down the deficit by raising taxes, I would contribute my fair share. But since we know that isn't going to happen, morally I have to oppose every new tax. Don't tell me I have to pay more money when you can't keep a balanced budget. Off topic: Anyone who has a retail brokerage account who advertises on CNBC or TheStreet.com should tell that brokerage about Cramer's stance on the transaction tax (http://www.thestreet.com/story/10632585/1/cramer-responds-to-trading-tax-critics.html) and tell them to cancel any advertising links with those entities.
If high tax rates make a country rich how come the soviet union failed? The state officially owned EVERYTHING a 90-100% tax rate? If printing money makes a nation wealthy, what's Zimbabwe's excuse? It's not by accident that the US has been the world's economic engine. Now you fools want to sweeten things up by putting sugar in the gas tank. taxes, printing money and excessive borrowing do not make for a rich nation. Kinda funny I was watching cnbc and the host was arguing(with rick santelli sp) a weak dollar was a net boon to the US economy. Of course he was talking in all economic goofyspeak and had totally disengaged rational thought (as per requirement for fairytooth economics). Don't these ignorant anus's realize a cheaper dollar hurts everyone who owns dollars (see example above of currency devaluation by zimbabwe)? It doesn't matter how Z devalued it's currency, the only important feature is the effect impoverishing the nation.
Devaluing the dollar is good for the USA in the long term. That is, if the USA ever wishes to export again...
I agree. The tax for labor should be reduced to 15%. Buffet is loophole king. If he feels guilty about not paying payroll taxes , he should just take his a salary with a W2 instead of taking his income as capitol gains. He also favors an estate tax, yet he bypass that tax by converting his wealth into a non-profit fund run by Bill Gates.
Don't forget the USD being the weakest currency in the world. I'd say that's a nice tax as well really.
The USA has such a huge GDP it would be unreasonable to have the same percent that small countries have go to taxes. The cost to run goverement does not go at a 1 to 1 ratio with GDP USA GDP 14 Trillion, 40% is 5.6 Trillion. No way the the Goverment need 5.6 Trllion to run its programs.
You Quote Dean Baker who is probably the dumbest economist to ever get on tv. Baker would argue that a 90% tax rate is too low. Any productive family in the us is paying over 40% total tax if they are not in one of the 7 non state tax states. The bottom 30% who pay no federal tax creates the low number of 28% you cite.