Let the Rich Pay the Same Tax Rate as the Poor
Reader comment on: Epstein on Piketty and Madison
Submitted by Eugene Patrick Devany (United States), May 6, 2014 18:16
Prof. Epstein writes that concentrations of capital in a democratic society are deeply vulnerable "as evidenced by the strongly progressive income tax rates and estate tax rates". His evidence of progressive tax rates is odd since we could establish the same low rates for rich an poor and the rich would still complain.
Consider an option to pay a 2% net wealth tax (excluding $15,000 cash and $500,000 retirement savings) combined with an 8% income tax and no payroll, capital gains, inheritance or gift taxes. It would leave more money for most taxpayers outside the top one or two percent who have always managed to pay far less than the poor by avoiding tax on unrealized capital gains and similar forms of economic income.
The very rich would likely complain about paying the same rates as the poor. They could actually be allowed to avoid the wealth tax if they elected to pay a flat 26% of gross income (and make up any shortfall with estate taxes later).
Complementary business tax reform would consist of an 8% C corporation rate combined with a 4% VAT.
Allowing workers and families to accumulate more wealth and increase disposable income should be the long range focus. Creating full employment by eliminating the payroll taxes would be a welcome bonus. Read more about the 2-4-8 Tax Blend at TaxNetWealth.com
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Other reader comments on this item
|Good for Prof. Epstein [21 words]||Harry Binswanger||May 6, 2014 23:10|
|⇒ Let the Rich Pay the Same Tax Rate as the Poor [225 words]||Eugene Patrick Devany||May 6, 2014 18:16|
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