@slopes23 - Clearly you're young - and that's OK. And you're succeeding - which is lovely. Congratulations. And how proud you must be that you accomplished it all on your own, without any help from the government or your parents.
But please familiarize yourself with the US tax code and marginal tax brackets. Currently, the highest tax bracket is 39.6%, which kicks in only after the first $450,000 or so of
taxable income. A US taxpayer almost never hits a 50% bracket except for the
very highest earners in in CA or NYC who do nothing to mitigate their tax burden. (Show me a rich person who takes no steps to mitigate their tax burden...) And even so -- You
seriously believe that the highest earners
will decide to stop working because their tax burdens are too high? Because they only get to keep $0.60 of every $1.00 they earn? I can only envision that if they have far more that they can spend anyway. And what type of work are they doing that puts them in the 1%? Unless you're a professional athlete or entertainer, you get incomes like that from things you OWN, not from things you DO. You're suggesting they'll stop owning things? Stop making new investments? OK - And
do what with all that money? Hide it in a box under the bed?
You're making a whole lot of unfounded assumptions about what I would do with "
all the rich people's money." Have we met? Or are you perhaps making that up? Lots of hyperbole and Fox-spouting rhetoric. But just FYI, what I would in fact do (if I ruled the world - which we all know I don't), is legislate a higher minimum wage and divorce healthcare from employment in favor of a single-payer system. (
That way, poor people could get preventative and necessary health care, and their employers would have no influence on their medical care.) I would modify the current welfare system that penalizes poor people nearly dollar-for-dollar for income they earn. (
Where's the incentive to work if there's no net gain?) I would also raise the top tax brackets (
even though it would mean I pay more taxes), subsidize day care (
so adults with small children could earn a living, knowing their children were being well cared for), encourage continuing education (
mass transportation from low-income neighborhoods to education and employment centers and subsidized loans for path-to-employable-skills degree programs would help), and invest more in early childhood and primary education, so opportunities for all people are more equal. But enough pipe dreams. Too many 'Red State' Americans think like you, so it's unlikely to ever happen.
The shift to part-time work was happening before the ACA, but yes, the ACA did accelerate it, and that's a big problem. One we need to fix.
And yeah, there's a slippery slope for wealth redistribution, taxation, public services, regulation. Yes, at some point, too much is too much. But too little is also too little - and I'm arguing that we're well into the 'too little' zone. Wealth inequality has become far too extreme. The gap between CEO and hourly-worker pay has become positively obscene.
Yes, of course people should be held accountable for their own choices. But when conservative politicians try to eliminate and circumscribe those choices, I feel they forfeit the moral high ground from which to then criticize those choices. Sure, poor teenagers shouldn't have kids! But apparently, they shouldn't have abortions either. Or ask the government to pay for contraception. Or their employers, because hey, those corporations are people too -- and they're part time anyway. No sex for poor people!
"And no, I don't think there should be a baseline, the same way I don't think there should be a cap on success. No ceiling, no floor. That's freedom."
Ever read any Dickens? The horror that was
"free market capitalism" unfettered by any government regulation or (apparently) sense of morality and civic responsibility.
And do investigate a little concept called the "just world theory". It might help you understand why you view the world the way you do --
For someone who is trying to "teach" others about our tax code you sure conveniently leave out a lot of important information, for one the 450,000 number is if you are married, if single the number drops to around 410k. But that's not a huge deal. The more important issue that you left out is that there are two sets of taxes that everyone pays. Federal & State. 39.6% is only the federal income tax. Here is a list of some states income taxes which would clearly put people over the 50% mark or close to it.
- California 13.3%
- Hawaii 11.0%
- Oregon 9.9%
- Minnesota 9.85%
- Iowa 8.98%
- New Jersey 8.97%
- Vermont 8.95%
- District of Columbia 8.95%
And that is not including NYC: New York City and state's combined top tax rate is currently 12.70%; factoring in the
4% UBT on business puts the rate at
16.70%
16.7% + 39.6 = 56.3%
But of course, classic Straw Man argument, just become I am young, must in fact mean I am un-informed about our US tax-code, and by implication naive.
Let me make another thing clear, I don't identify myself as being conservative or liberal. I think both republicans and democrats have good ideas in different areas, but they both are also filled with silly polarizing people who cloud the space with ideas that either don't make sense or are pie in the sky. For simplicity sake lets say I am a fiscal conservative and social liberal.
But I digress, were where we? Do I think that the highest earners will just stop working? Hmm, no. I think if you had it your way the highest earners would likely either move somewhere else where people aren't trying to suck away their money like vampires or would find ways to keep their money sheltered offshore, like Apple already does via Ireland. So you suggest that most people who make >1MM only do so because they own things? What about small business owners? They "own" the business, but they also built it usually from nothing, and work in it. You should be allowed to just come in and say hey I am uncle sam, and because of that, I deserve half of your income? Sounds like a great place to live.
Also, you act like it is such a far fetched idea that people will just stop owning things or making new investments. But it's really not. The wealthy have the potential to make investments and own things all over the world. If you had it your way, you would be essentially telling them that they should take their money to different countries and invest there, be it properties, businesses, stocks, utilities, anything really. It may be foreign to you, but it is not difficult to take your money elsewhere especially in this day an age where the world is interconnected through the internet of things. That's not an assumption. That's the way it is.
Higher minimum wage: I can get behind that. To an extent. I think it should keep up with inflation. Okay, that's fine. But you seem to be someone that would advocate for a $15 minimum wage, which is silly (and if not, then please say higher minimum wage by how much). Increasing the minimum wage past inflation only increases the cost of doing business. Most business owners cannot tolerate this type of cost increase, and would in turn resort to increases the prices of their products, so then what is the point. You increase wages by 50%, which in turn increases cost of essential goods by 50% in reaction. It's a net neutral. Except it's not because in turn you are also increasing the barriers to enter the industry which reduces competition, new businesses, and in turn innovation. This in turn raises cost of normal goods even more because businesses don't have as much competition. ... Results of what happens when you take an idea that sounds nice, but don't think through all of the consequences and all of the possible un-intended ones.
You say ACA is bad. ...Now. But I am sure before it was enacted you were all for it. (Or maybe you weren't, if not then excuse that one assumption). Sorry if I don't think the government and the bureaucracy that comes with it is the solution to all things. You cannot subsidize everything.
Next issue you take: Slippery slope and CEO to worker hourly wage gap. So since we established that when evaluating tax rates one must also account for state income tax, you agree that wealth redistribution is a slippery slope. But, proceed to then say we are in the "too little zone" tax-wise. Again, with taxes in many places across the nation (often times where the highest earners live) over 50%, you think that a situation where more of your earned money goes to the government then it does to you is "well into the 'too little' zone" then wow. Someone is making more money for the government then they are even for themselves, and its still well into the too little zone. Additionally, going back to the slippery slope, while you acknowledge it is a potential issue you imply that your ideas are equipped to avoid sliding down said slope, and taken to the proper scale that the government and all of its bureaucracy and politics is well equipped to keep us from going down this slope. It's an oxymoron by definition.
You say you would modify the welfare system because of the penalizing structure in place now. But please explain how exactly you would modify it? How would you prevent people from gaming the system, and incentivize people to go to work? Single payer system hmm? So increase the capacity the health care system can care for at the expense of the quality for which it is able to provide care? Goes back to the belief that the government knows best. The government is not an all knowing entity. It is run by humans, and the policies are created and enforced by humans. This means that the policies are entitled to failure just like any human idea is. The issue is that a single payer system is not nimble. So to promote change becomes very difficult because of the scale and complexity this typically involves. Additionally, just like any human, depending on who is in office/government, there will exist different ideas on how to run a single payer system, so changes will always be on the radar, but as we just talked about, these changes are inherently difficult to implement, and often come with unforeseen consequences including long period of limbo during back and forth changes. Would it not stand to reason that a better system would be to have smaller more nimble market makers. Where there is competition, and people can join the health care system that suits their needs and their beliefs the best? The ones with good ideas and service thrive, the ones that don't fail? Perhaps, one idea would be to have subsidized catastrophic life insurance as a requirement and anything below that threshold is covered by an HSA? Tons of different ideas all with weaknesses and strengths, but single payer is certainly (in my opinion) not the best option of the bunch.
Personal Accountability: Like I mentioned at the beginning of this reply, I am a fiscal conservative and social liberal. Teenagers shouldn't have babies. Not just poor teenagers, but any teenagers. Until you have a partner who is equipped to support you both financially and emotionally, or you yourself are equipped to do so independently no-one should have a baby. It's still your own choice to go ahead and do it (read freedom) but you also receive whatever consequences come with it, for better or worse. Did I ever say that I am against abortion? No. More over, I am not against abortion. I think it's an idiotic principle that the same people who tout freedom and independence for all, try to limit the freedoms of women and their body. If someone doesn't want to have an abortion because it goes against their beliefs. Fine, cool. But don't shove those beliefs down other peoples throat. Women deserve the choice to choose what happens to their body.
Dickens: I also never said I believe in an unregulated market. I am in no way shape or form proposing an anarchy, a society without government. I just believe government has gotten too big for it's own good, and it is in such debt because people believe they are entitled to to many things in their life instead of making things happen for themselves and accepting responsibility for their actions when they fail to do so. There are many areas where government is not only helpful and useful, but is required to ensure fair play. But do not mistake fair play as everybody wins, and everybody is special. Sorry, but to win someone must lose by definition. Equally true, everybody cannot be special, by definition.
For someone who doesn't want assumptions to be made about her, you certainly made your fair share of assumptions about me in your response, and conveniently so I might add.
It's amazing to me that people who want to create new programs often times want to siphon away more money for these things. They see 19 trillion in debt and say, well what a few billion more. How about you cut spending, and create a net savings in the government budget, get your debt under control so you aren't drowning in it, and
then, when you don't owe anyone anything and the government has money to spare you can say hey maybe we can subsidize this or that.
If the government could be trusted to do everything properly, we wouldn't be 109% in debt relative to our GDP. Meaning we could use the GDP money for an entire year paying down nothing but our debt, and we still wouldn't be done paying. Not a dollar spent on anything more. Not one dollar. Still you would be 1.5 trillion in debt. And you think creating more programs and subsidies is the way to go?
Remind me not to lend you my credit card, ever.