Late thoughts after reading other replies
by SixShutouts66 (2024-02-18 21:31:59)

In reply to: PBR Poll on Possible Federal Revenue Enhancements....  posted by Raoul


1. Much of the discussion here and in the general public can be characterized as "how can we raise more money from other people". Any honest discussion of the national budget must start from the point that all should feel the pain of taces and/or cuts. Switching to a sales tax or wealth tax are two that fall in the category of let someone else deel the pain.

2. It's an unfortunate fact that increased revenue will trigger calls for increased spending, rather than budgetary improvement. I'm not sure what "punishments" or carrots could be used for Congress to control the budget (reduction of pension/benefits or pay, disqualification from holding office, wearing saxkxloth and ashes?)

3. Capital gains, especially passive holdings, are easy targets. Remember though, that elimination of pension plans makes private holdings for retirement very important for the future. Also long-held capital gains can be viewed as inflation hedging and "profit". That is, an initial investment of $1000 may have been the equivalent of 20 pairs of shoes; and when I sell it several years later for $2000, that may be the equivalent of 20 pairs of shoes and $400

4. Tightening the estate tax (sorry Gen X etc.) may be reasonable to capture at least wealy=tj that has escaped taxation during the owner's lifetime.

5. Business tax rules don't seem to have kept up with multinational business. The system seems to encourage companies to move profits to low-tax countries or a favored country. Biden pushed for joining this IIRC, but it seemed complicated.

6. Although some elements of the tax code are what I'd consider fraudulent steps to allow people to evade taxes, very many are steps by the Government to promote certain behaviors (marriage, children, education, et cetera) or allowances to protect people that allow others to use the same method (family farms, business losses, depletions).

7. The initial attempts in Europe at a wealth tax seemed to fail due to cost of implementation, relocation of those affected (to Monaco egc.), and limited production of revenue. I admit that I'm not bothered by the Gates and Bezos of the world (nor the uber-rich athletes) since I prefer their impact on the US job market (although both need to be reproached for their employee tactics IMO).

As a note of snark, anyone in favor of a wealth tax to limt the uber-rich must be in favor of ending large payout lotteries unless they're hypocrites.

8. I agree that most of all charitable donations should be taxed, especially those that carry a benefit to the donor