I keep seeing there was a 70% tax on anything over 10 million years ago, what is that in today money?
in 1944 the rate was 94% on earnings over $200k(which is about $2.8mil in 2018 dollars) and in 1970 it was 50% on earnings over $200k(about $1.2mil in 2018 dollars). I dont know exactly what year was 70% over $10mil though and I'm not a tax man so I just pulled that off wikipedia and it might be wrong
He might not like it, but it ultimately doesn't matter. He's already forever rich and can sit back and be idle. This would actually encourage him to do so.
Even when people were paying 70%/90% on their upper income, they were not paying 70%/90%. There were so many ways out that i think it ended up being closer to 40%. Which I know is still a lot, but not much more than might be necessary to run a modern country. I find the psychology of taxes very interesting. Let's say I make $50k a year now, and pay $10k a year in taxes. I whine and moan about "my" $10k. Now, what if, instead, I made $40k and paid no taxes but my employer had to pay $10k in wage taxes. I never see it, never think about it, but the outcome is the same. Would I still moan about "my" $10k?
There's a point of diminishing return that would hurt the economy. A lot of money would leave the country and more of it would go into the shadow economy.
I think I could live quite comfortably on $10m/yr and would have no problem donating the excess to charity to avoid the 70% tax rate if it bothered me. Or I probably could set up some sort of trust for family. Or any number of tax shelters that experts could advise me to use to minimize by over $10m tax burden. Hell, I could probably get my name on a UT building and Haslam could kiss my azz. But alas, I'm still pizzed that the NC state capped the amount mortgage interest and personal property tax I can claim as a deduction and the Feds won't let me claim 80% of my UT donation required so I can buy season tix. I don't give two shitz about some guy's over $10m tax rate. I have no sympathy for his plight. Cry me a river.
It will always happen but we can have a tax system that encourages more of it here and more in the light. You're going to get about 20 percent. After that people start to get creative in keeping their money.
I don't understand this line of thinking. The answer seems incredibly obvious. Simplify things so that the rate you seek is the rate you get. Don't jack the rate to 90% in order to get 40%.
This is a naive way of thinking. Yes, it’s happening, but the games changes completely if the rate is 70%.
I've noticed the optimum tax rate for any situation is always reported to be just a little less. There are tangible benefits to strong infrastructure, healthy population, and strong defense that greatly mitigate high taxes. there is no limit being put on income.
