Re: FirstRateCrowd's EIRA

Posted: Sun Mar 03, 2019 7:31 pm, #20
by janebird21
Elizabeth Warren isn't the only one with plans to tax the rich. Alexandria Ocasio-Cortez suggests a 70% tax on income for anyone making above $10M in the US and it's forcing even the Republicans to talk about it.

https://www.theguardian.com/commentisfr ... t-tax-rich

Unlike Warren's plan, this tax is completely constitutional as it focuses on anyone bringing in more than 10 million dollars. Although Cortez's statement was in response to funding climate-change initiatives and not specifically economic inequality in the US, it is forcing Republicans to talk about the issue.
even when conservatives are fuming about Ocasio-Cortez, they cannot stop talking about her ideas. The Green New Deal climate change plan has gone from marginal to mainstream almost overnight... They are frustrated in part because the more they denounce “socialist” ideas, they more popular the ideas become.
This is an example of the types of seeds that should have been planted back in the 1970s when American policy began shifting in order to better line America's wealthy. No one paid attention then and the more light we can shed now will greatly impact present and future decisions. This article even brings up the bigger issue that if a blanketed 70% tax policy was established, having millionaires actually pay the tax is another struggle altogether.
This is, in part, because the rich would circumvent the tax through loopholes and moving money overseas. But this, in itself, is not an argument for not levying the tax: it’s an argument for closing loopholes and finding ways to effectively restrict the international movement of capital.
So my argument is simply, why not make it more difficult for the wealthy to circumvent paying their share of income taxes? Go ahead, start moving your money oversees. In the meantime, the same policy discussions that created the tax can then concentrate on those exact loopholes. We might not like it the slow progress but this forward moving policy is the turtle to win the race on economic inequality.

So as Republicans continue using ridiculous arguments and ancient scare tactics, the more the middle class learns to denounce these statements.
Many of the arguments against taxes on the wealthy are “moralistic” rather than empirical. The argument that taxes on high earners are “slavery” is incoherent. Nobody forces you to earn $10m. When you are enslaved, someone makes you do work. Being wealthy is a choice – you could avoid the tax whenever you like by shedding your wealth and joining the working class. If we want to talk about “freedom”, the concentration of wealth at the very top has made the super-rich more free do as they please than anyone else, while it’s poor people who are faced with the choice to either work or suffer. If we want to talk about morality, having tremendous wealth when there is terrible deprivation cannot be justified.
With bold players such as Alexandria Ocasio-Cortez rattling the Republican mainstream, the future doesn't look too bleak.