EE PatronFeb 2nd 2012, 15:49:44
nice post Oceana
90% of your income isn't taken from you...
first off, with our income tax system only the money falling within a tax bracket gets taxed at its rate... so in other words, if you make $1,000,001 only $1 gets taxed at the 90% rate... the rest at the subsequent lower rates.
secondly, to be subject to the 90% rate you'd have to be making enough money to enter that top bracket, ie over $1m or whatever, in which case you've already been successful.
now, let's consider the marginal value of the dollar. If you have $10b in the bank, $1 means basically nothing to you, right? but if you're starving on the street, $1 buys you some food off the 99 cent menu. the marginal value of the dollar continues to decrease as you earn more money... for a normal person, each dollar is still pretty valuable (but not the difference between life and death), as it helps pay for rent, insurance, etc... but for the megarich, well, not so much.
and yet, TY, they keep working, don't they? they try to grow and expand and acquire more wealth and etc etc, and they fight efforts to tax them at higher rates and they spread stories about "job killers" and so on. so i don't think a 90% tax rate will stop them from trying to earn even more money...
Originally posted by TY:
So if 90% of your income was taken from you, you would still risk the 10% on a venture where its possible you could fail and lose the 10% also? I wouldn't it would be stuck in the bank to collect whatever interest I could get out of it.
first off, with our income tax system only the money falling within a tax bracket gets taxed at its rate... so in other words, if you make $1,000,001 only $1 gets taxed at the 90% rate... the rest at the subsequent lower rates.
secondly, to be subject to the 90% rate you'd have to be making enough money to enter that top bracket, ie over $1m or whatever, in which case you've already been successful.
now, let's consider the marginal value of the dollar. If you have $10b in the bank, $1 means basically nothing to you, right? but if you're starving on the street, $1 buys you some food off the 99 cent menu. the marginal value of the dollar continues to decrease as you earn more money... for a normal person, each dollar is still pretty valuable (but not the difference between life and death), as it helps pay for rent, insurance, etc... but for the megarich, well, not so much.
and yet, TY, they keep working, don't they? they try to grow and expand and acquire more wealth and etc etc, and they fight efforts to tax them at higher rates and they spread stories about "job killers" and so on. so i don't think a 90% tax rate will stop them from trying to earn even more money...
Originally posted by Mr. Titanium:
Watch your mouth boy, I have never been accused of cheating on any server nor deleted before you just did right there.