LogFAQs > #962169298

g980 posted...

I don't support wealth taxes, but I am open to raising income taxes in most scenarios.

The problem with income tax is that most of the very wealthy are going to be "immune" to such hikes and you're really only hurting the upper middle class. The reason being is someone with multimillion dollar net worth likely has their net worth in a combination of assets, equity, stocks, etc such that it's not exactly tangible how much they "make per year." Especially with clever ways of accounting for that money. To that extent, the ultra wealthy often pay lower in income taxes than most low income earners specifically because they don't tend have high incomes. They're asset-rich. Not liquid-rich.

But your higher income taxes will absolutely hurt those six figure income earners in tech, medicine, law, and finance that aren't entrepreneurs but are earning incomes (albeit high ones). But even someone earning 250k a year investing 20% over a 30 year career might end up in the ballpark of a 5 million dollar retirement portfolio when all is said and done. Someone who makes a start up and sells for 20 million and then diversifies their wealth in a variety of areas that continue to grow that wealth at a certain %, but otherwise aren't "wage workers" will have low income tax. They'll pay less than the person making the 250k and will end up with far greater net worth in the end. Because until they exercise or realize those gains, they won't get hit with those taxes.