General Discussion
In reply to the discussion: We should tax and tax and tax and tax and tax the 1% ... [View all]ProfessorGAC
(64,968 posts)Given that in the 50's virtually nobody actually paid 90%, merely raising the marginal rate to some massive proportion is unlikely to be the answer.
Compensation packaged will be restructured and the taxes will only change a little.
I'm all for a progressive tax rate, but at some point it does, in fact, appear to be jealousy and a punitive response to wealth.
The only place where i'd drop the hammer is on inherited wealth, excepting cases where there is a pledge, with retroactive financial penalty, to hold and operate a business after ownership changes hands through death for some definitive, but long, amount of time.
We worry about the guy with the farm leaving it to his kids and if inheritance tax is too high, they have to sell the farm? Then they pledge to run the farm for 20 years. Same thing with the kids who inherit the parents bar or store, or whatever. Keep the business running for long enough and the inheritance tax goes away. Liquidate the business and you pay a large %.
Legacy tax breaks are inherently wrong, but "tax and tax and tax and tax and tax" sure could be interpreted as just resenting wealth.