The Conservative Cave
Current Events => The DUmpster => Topic started by: thundley4 on December 23, 2009, 04:27:16 PM
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rateyes (1000+ posts) Wed Dec-23-09 03:00 PM
Original message
How to solve the economic crisis: Tax all income over a million dollars at 95%.
The marginal tax rate on incomes over $400,000 during the Eisenhower administration was 92%. We need to go back to those days.
Here's what would happen. There would be no more $20 million dollar bonuses. There would be no more salaries over a million dollars (including for pro athletes).
CEO's would NOT pay that tax. Instead, they would do things with the money to avoid paying tax that is very attractive. You would see charitable giving in this country skyrocket. You would see people being hired, and you would see wages go significantly higher. You would also see the deficit, within very few years, erased.
There is precedent for such a tax rate, and the economy of the country was in great shape when the top tax rate was that high. And, no poor CEO went hungry.
Why should they pay such a high rate? Because, they have been the prime beneficiaries of government's rules. It's time for them to pay the piper.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7308178
onehandle (1000+ posts) Wed Dec-23-09 03:03 PM
Response to Original message
1. I only made $999,999.99 this year, so I fully approve. nt
Cal33 (158 posts) Wed Dec-23-09 03:56 PM
Response to Reply #1
33. I think you misunderstand. I believe what is meant with this
suggestion is that, up to $1 million you pay the regular taxes, but you'd collect only 5% of
anything above $1 million.
By the way, at one time they taxed at 90% of anything above $100,000 (if I'm correct). Joe
Louis was in that income bracket. Big business people, of course, could and did find
all kinds of loop-holes. Those on straight salaries were the ones who got socked. Not
many people on straight salaries were in that income tax bracket.
The Doctor. (1000+ posts) Wed Dec-23-09 03:20 PM
Response to Original message
7. It's easy to take that position....
Given that the vast majority of multi-millionaires perform very little constructive functions with their money.
I have business models that, if I had the capital to get them running, could easily net myself and investors a million a month (no joke). With that I could do a lot for people with new programs and models.
I have a model that would put a certain industry out of business practically overnight, and it would increase the general prosperity of Americans. After that, I have models for other industries that would drive prices down, improve energy independence, and create more general prosperity.
Maybe I'm just crazy though.
Thing is, I could act on those much faster if I were being taxed at 50% rather than 95%
In my case, I would definitely be spending money towards better ends than the Federal Government ever would.
:mental:
Oregone (1000+ posts) Wed Dec-23-09 03:26 PM
Response to Original message
8. The rich wouldn't pay. They would reinvest it into the economy and write-off business expenses
And that, my friends, is why high marginal rates drive economic activity.
Why is it that tax revenues go up when marginal tax rates go down?
pampango (1000+ posts) Wed Dec-23-09 03:26 PM
Response to Original message
9. Great idea. Don't think you would have to ban salaries or bonuses over $1 million, though.
With that tax rate if someone gets a $10 million salary or bonus, the IRS gets 95% of the last $9 million (leaving Mr. Rich Guy with $450,000). I doubt that too many will hold out for that last million or two, but if they want to, fine with me.
Not only would you see more charitable giving, increased hiring, and higher wages, as you point out, but businesses would focus more on customer and employee loyalty and marketing for the long run. Now businesses focus on maximizing short term profit to meet next quarter's earnings expectations to keep Wall Street happy, even if that means they are hurting long term future of the business, by alienating employees and customers.
I think all of the socialism running loose in congress is driving these people even more insane or at least making them more stupid.
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Why do I want the headaches, endless hours, and risks of running a successful growing business if the money goes to the jug-eared muslim?
Why don't I lay off DUmmies and scale back so that I only make as much money as the tax laws allow me to keep?
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Apparently, nary a one of these idiots has any recollection of the 70s.
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DUmmies.
Nobody would EVER pay that tax.
Everyone will be asking for that $999,000 salary instead.
Result: Worse economy. Less charitable giving. Fewer jobs. A drastic drop in tax revenue.
It makes much more sense to tax everyone at 40% than to tax the "rich" at such a level that people avoid economic activity.
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Why do I want the headaches, endless hours, and risks of running a successful growing business if the money goes to the jug-eared muslim?
Why don't I lay off DUmmies and scale back so that I only make as much money as the tax laws allow me to keep?
I'm so close to closing. It has been a goal for many years but the latest tax increase and ever increasing regulation in kalifornia pushed me over the edge into 'shrugging'. I have but two more contracts to complete and then it is a one man shop consulting. No employee headaches. no unemployment insurance hikes. No more sales tax audits. No more paying everyone and their brother for a license. No more dong the books. It will just be me and an invoice. It was that way once upon a time and then I went and made a business that employed people and paid the government...and paid.
Good luck on ever getting my niche business back in the USA. This particular high speed testing has no other competitor than in Taiwan.
I feel sad but I feel great. It was hard and I did it but now it just ain't worth the hassle. I don't blame Obama and the pelosi/reid cabal as mush as the idiots that run sacto but there is no difference other than scale. This is coming to everywhere in the USA, even the reds states, if it is not stopped.
Making up your mind to 'shrug' is hard. Actually performing the 'shrug' is heartbreaking. Completing the 'shrug' is liberating. Don't think that tens of thousands of other small businessman are not doing the very same thing. more than you think are quitting business not because their business is failing but because in addition to working for the sale, working to design the product, and then working to deliver the product, we nowwork against our government to stay in business.
This will not be pleasant and it will last a long time.
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CEO's would NOT pay that tax. Instead, they would do things with the money to avoid paying tax that is very attractive. You would see charitable giving in this country skyrocket. You would see people being hired, and you would see wages go significantly higher. You would also see the deficit, within very few years, erased.
No,they would simply leave the country,their business with them.
Remember all the great liberal British recording artists of the 70s..Tax exiles is what they called them when Britain had a 98% tax.
The Doctor. (1000+ posts) Wed Dec-23-09 03:20 PM
Response to Original message
7. It's easy to take that position....
Given that the vast majority of multi-millionaires perform very little constructive functions with their money.
I have business models that, if I had the capital to get them running, could easily net myself and investors a million a month (no joke). With that I could do a lot for people with new programs and models.
I have a model that would put a certain industry out of business practically overnight, and it would increase the general prosperity of Americans. After that, I have models for other industries that would drive prices down, improve energy independence, and create more general prosperity.
Maybe I'm just crazy though.
Thing is, I could act on those much faster if I were being taxed at 50% rather than 95%
In my case, I would definitely be spending money towards better ends than the Federal Government ever would.
So what is stopping you?
Just saw that "Maybe I`m just crazy though" remark.
Yep.
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I'm so close to closing. It has been a goal for many years but the latest tax increase in kalifornia pushed me over the edge. I have but two more contracts to complete and then it is a one man shop consulting. No employee headaches. no unemployment insurance hikes. No more sales tax audits. No more paying everyone and their brother for a license. No more dong the books. It will just be me and an invoice. It was that way once upon a time and then I went and made a business that employed people and paid the government...and paid.
Good luck on ever getting my niche business back in the USA. This particular high speed testing has no other competitor than in Taiwan.
I feel sad but I feel great. It was hard and I did it but now it just ain't worth the hassle. I don't blame Obama and the pelosi/reid cabal as mush as the idiots that run sacto but there is no difference other than scale. This is coming to everywhere in the USA, even the reds states, if it is not stopped.
Making up your mind to 'shrug' is hard. Actually perfoming the 'shrug' is heartbreaking. Completing the 'shrug' is liberating. Don't think that tens of thousands of other small businessman are not doing the very same thing. more than you think are quitting business not because their business is failing but because in addition to working for the sale, working to design the product, and then working to deliver the product, we nowwork against our government to stay in business.
This will not be pleasant and it will last a long time.
Both my brother and one of my sisters-in-law (different brother) are in the same boat. My brother owns a commercial signage shop that was going gangbusters, he opened about 3 years or so ago, and by last year had one full-time and one part-time employee. Now, he's basically decided that he's going to have to go back to being a one-person shop: himself. My sister-in-law owns a "green" home cleaning service, which clearly cannot be done without employees, but she's already scaled back a lot and laid off all but the best and most experienced - the ones who work well enough to more than cover all of the costs of keeping them employed - even though it means having to cancel a lot of cleaning arrangements.
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The Doctor. (1000+ posts) Wed Dec-23-09 03:20 PM
Response to Original message
7. It's easy to take that position....
Given that the vast majority of multi-millionaires perform very little constructive functions with their money.
I have business models that, if I had the capital to get them running, could easily net myself and investors a million a month (no joke). With that I could do a lot for people with new programs and models.
I have a model that would put a certain industry out of business practically overnight, and it would increase the general prosperity of Americans. After that, I have models for other industries that would drive prices down, improve energy independence, and create more general prosperity.
Maybe I'm just crazy though.
Thing is, I could act on those much faster if I were being taxed at 50% rather than 95%
In my case, I would definitely be spending money towards better ends than the Federal Government ever would.
I remember an old TV show about this guy! He's the one who had that pill that would turn water into gasoline!
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Why do they think we call them DUmmies? :thatsright:
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Why do they think we call them DUmmies? :thatsright:
'Cause we're so jealous of them! ;)
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There is just so much wrong with this.
DUmmies can't help themselves, they have to steal other people's money.
They hate the creation of wealth.
They complain about the gap between rich and poor. Imagine what this 95% tax would do to widen that gap? The wealthy already have their "stash." Invested properly, those investments would continue to grow. Remember the story about teresa Heinz kerry? She was paying something like 5% capital gains on her half a billion dollars. Ring a bell DUmmies. Ever hear of tax free municipals, DUmmies? Ask Rush. I'm sure he'd like to make your poor heads explode.
And the nitwit who said the deficit would disappear...my god, you think the 'rats wouldn't spend it before it's collected. Sheesh.
Oh, one more thing. No more million+ salaries for pro athletes? That will go over real big with the obama voters in the nba/nfl. Back to performing for the man for less money? Not likely. Can you say "european league?"
Spit. Rant off.
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The Doctor.
I have business models that, if I had the capital to get them running, could easily net myself and investors a million a month (no joke).
:jerkit:
.
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Specbid, not to mention the movie stars and rock stars.
Jukin, I don't blame you one bit. I have long felt that the American lefties' biggest mistake is to ignore the Galt effect. It must feel very liberating. We tried for a time to have one employee, but found it's just far easier to be pure "mom and pop."
Now they're standing around wondering why the unemployment rate is north of 10%.
The Doctor. We've seen him before, and he was crazy there, too. Lots of harebrained ideas and a very highhanded approach, right? His little paragraph up there brought whiffs of TominTib.
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...and the DUmies will love the way that works....."Lets see....it's June and I've already made a million....no need to work anymore this year....HEY EVERYBODY, LISTEN UP....YOURE'RE FIRED. Check back with me in January."
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No,they would simply leave the country,their business with them.
Remember all the great liberal British recording artists of the 70s..Tax exiles is what they called them when Britain had a 98% tax.
So what is stopping you?
Just saw that "Maybe I`m just crazy though" remark.
Yep.
Well, at least he got one thing right.
:popcorn:
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Specbid, not to mention the movie stars and rock stars.
Now wait a minute. I'm starting to like this idea. 95% tax , but we restrict it to pro athletes, movie and rock stars, and ex 'rat politicians who travel the world for speaking engagements at 100 grand a pop. :naughty:
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rateyes (1000+ posts) Wed Dec-23-09 03:00 PM
Original message
Because, they have been the prime beneficiaries of government's rules. It's time for them to pay the piper.
No, DUmbass, you leeches have been the prime beneficiaries of liberal government's rules and the time is rapidly approaching where you will pay the piper.
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Well, at least he got one thing right.
:popcorn:
Broken clock. Frequency of accurate readings. You know the drill. :cheers1: