The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

[Ban Hammer 13,619]

57 minutes ago, moxy said:

If the middle class is eventually taxed because we can't get the revenue from the rich then that's obviously a failure in the goal of making the rich pay their fair share. But again, I don't expect you to agree; it sounds like you're fine with the ultra-wealthy continuing to enjoy benefits that were written by the rich, for the rich. I don't understand why anyone would be ok with that, but we're not going to resolve that here. I just appreciate that you understand the "tax the rich" argument now.

 

what percentage would that be?

[moxy 1,051]

2 minutes ago, Ban Hammer said:

what percentage would that be?

I might be off a bit, but I believe Elizabeth Warren's plan is:

• No additional taxation under $30M
• 2% on net worth between $30M and $1B.
• 4% above $1B

Which would bring in additional revenue of about $400B/year

 

Feel free to fact check me, that's off the top of my head. I'm mentioning Warren's plan because it's the one I'm most familiar with, and the one I believe has the most traction. There are undoubtedly other plans out there.

 

[Dashinka 24,848]

49 minutes ago, moxy said:

There are mechanisms that have been used in the past to do what you're talking about, I believe through a series of luxury taxes. I honestly can't speak intelligently to how those mechanisms work, so I won't. But we put men on the moon, so I'm sure smarter minds than mine can figure it out. As a private citizen and not a tax accountant, my interest is simply in the rich paying their fair share. Obviously I also want the mechanisms to make that happen to also be fair.

 

I don't know that there is a constitutional hurdle. Taxation has been found constitutional for over 200 years. And the rich used to be in much higher tax brackets before (iirc) the 80s, so unless it was unconstitutional then, and nobody noticed, then it'll probably be constitutional again.

It does seem a wealth tax would be a direct tax as defined by the Constitution (much like income).  The only way the Feds were able to get around SCOTUS on the income tax constitutionality was to get the 16th amendment ratified.  Since the 16th amendment does not cover accumulated wealth, a wealth tax would have to be apportioned as per the constitution or require another amendment.

Edited June 21, 2021 by Dashinka