How to tax the rich.

[Catman1975]

I stumbled across this from beancounterblog.com

Scott Adams came up with a way to get the rich to pay more money in taxes. He discusses the idea of giving the rich extra rights in exchange for taxing them more. At face value some of the extra rights do sound interesting, like the right to rename streets or to be able to park in front of fire hydrants. I found it to be an interesting read.

Do you think there could be anything that could be offered to the rich to entice them into actually paying more in taxes?

[CingularDuality]

www.fairtax.org

Federal taxes paid on every single thing they buy!

[xanathemax]

Originally Posted by Catman1975

Do you think there could be anything that could be offered to the rich to entice them into actually paying more in taxes?

threat of prison time

[jonan_]

I don't think the rich should get penalized by having to pay more taxes just because they make more. I know that if I ever get rich it is going to suck having to pay all those taxes.

[Steeler]

Originally Posted by jonan_

I don't think the rich should get penalized by having to pay more taxes just because they make more. I know that if I ever get rich it is going to suck having to pay all those taxes.

You are never going to be super-rich.

[jonan_]

Originally Posted by Steeler

You are never going to be super-rich.

Not with that attitude.

[USN_Squid]

Why would you want the rich to pay more taxes?

[Acreo Aeneas]

Originally Posted by Catman1975

Scott Adams came up with a way to get the rich to pay more money in taxes. He discusses the idea of giving the rich extra rights in exchange for taxing them more. At face value some of the extra rights do sound interesting, like the right to rename streets or to be able to park in front of fire hydrants. I found it to be an interesting read.

Do you think there could be anything that could be offered to the rich to entice them into actually paying more in taxes?

Okay, ask yourself this: who here doesn't ever park in front of a fire hydrant on a very busy street and you're in a rush of time and need space so you can get groceries?

In my opinion, the rich already get things such as parking in front of a fire hydrant and renaming streets. The very wealth (those in the upper 10% of the bracket) get streets named after them for donating large sums of money to "goodwill" organizations in their local city/village.


There isn't anything you could really offer anyone in our socialist-capitalist society to "entice" them into giving up more of their newfound/old wealth. People live for the most part and dream for the most part about those green bills. Take a look at the lottery and how many people buy into it (myself included although very rarely). Then look at the odds for winning. We've got millions who'll do almost anything to get some more green and keep it all to themselves (refer to the various game shows and "reality" shows).

Edit:
I'm going to continue on my rant/pace...

Then there's the argument that the rich are the ones who finance our "society" through investments and so forth. You tax them heavily or more (after such a big tax cut thanks to Bushy-tail) and economists will scream disaster. The general consensus is that the rich will invest less, finance less, put less in the bank, etc. b/c they have to give more to the government. They are also against welfare for the most part, since they don't use it (unless you're talking legacy welfare) and it doesn't benefit them directly.

[JMJ]

Originally Posted by CingularDuality

www.fairtax.org

Federal taxes paid on every single thing they buy!

Props on the fairtax call...that would be the way to go!

[ScratchMonkey]

The market serves as a control system for resources. Just as an audio amplifier uses electrical signals for feedback, the market uses prices. Taxes are a way to "charge" for services, but they're an extremely poor feedback system, with lots of lag and lots of noise. So the resulting "signal" is poor. Imagine if your video game was controlled by taxes instead of network packets!

Just found an interesting paper describing this, with pictures:

http://pespmc1.vub.ac.be/Papers/MarketCo.html

[Santa]

I would much rather see rich people's money go into the stock market than into the governments hands.

[Kerostasis]

Originally Posted by Santa

I would much rather see rich people's money go into the stock market than into the governments hands.

Seconded.

[norden]

The proposed fair tax decreases the tax on people making more than about $200,000. With its subsidy for low incomes, it also doesn't raise tax on the poor.

That leaves the $20,000 to $200,000 crowd left to pick up the tab.

[USN_Squid]

Originally Posted by norden

The proposed fair tax decreases the tax on people making more than about $200,000. With its subsidy for low incomes, it also doesn't raise tax on the poor.

That leaves the $20,000 to $200,000 crowd left to pick up the tab.

It also commits non-tax payers to step up. Every drug dealer,tourist and under the table worker will now pay their share.

[Catman1975]

Well I didn't want to wait until I had a chance to read everything on the fair tax proposal before I posted again, but I don't see it as a positive item.

First I don't think that the real tax rate will be 23%. If the federal government abolishes the federal income tax and instates a flat tax, I think the state governments will follow suit.

From what I am reading, everything new is going to be taxed. How will this affect people that work in new home construction? Tack on 23% to a new home and tell me that won't slow sales. Then you are going to have to pay 23% tax on your home loan interest. If you rent, your rent just went up 23%

Credit card interest, that will be taxable. All of your utilities would be taxable. What about health care. I visit the hospital and rack up a $2,000 bill, there is a 23% tax on that, even if I don't have to pay that directly, my insurance premiums are sure to go up more than 23%.

I'm still reading so i apologize if I missed anything, but it seems like a lot of little things to pay taxes on and that they would add up quickly.

Business also seem to get out of a lot of these taxes, two companies owed by the same corporation will not have to pay taxes on items they might sell back and forth between themselves.