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Politics : American Presidential Politics and foreign affairs

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To: tejek who wrote (44764)	8/11/2010 12:21:29 AM
From: TimF	Read Replies (2) of 71588

Soaking the very very rich isn't going to produce much revenue. There are not enough of them, they already face high marginal rates and thus high incentives to reduce their tax liability, and the fact that they have so much money makes schemes (legal avoidance or even illegal evasion) to reduce the percentage they pay more worth the cost of setting them up. And most of the money they make is from investment income. Increasing the tax on investment income reduces and distorts investment more than increasing the tax on employees or the act of employing someone, is likely to reduce employment. Capital is a lot more mobile than people. Tax it and its gets shifted around to avoid the tax. Make it difficult to impossible to avoid the tax (which isn't likely to happen), and you reduce the amount it is put at risk to get a lower after tax return. Also that type of rhetoric about hitting billionaires or at least those with multimillion dollar incomes, tends to be used, nonsensically, to justify higher taxes on the "ordinary" rich.

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