Why should working income be taxed at HIGHER rates than capital gains?

The general answer to that is that high rates of capital gains penalizes retirees (who often depend on dividends from high-returning stocks like XOM and GE) and new venture investment, because investors in startups take their profits in capital gains.

Why should social security taxation be forgiven over about $117k in income? That’s regressive, not progressive taxation.

If you’re talking about the “cap” the reason for that is that Social Security was designed as an investment plan, not a welfare program. If you cap the payouts (and they are) then you have to cap the income you tax. If you want to turn it into a welfare program, then you drop the cap on income and means test the payouts.

Why do the vast majority of tax “incentives” (aka exemptions, tax cuts, etc) only affect higher income people?

Because those exemptions are taken on the 1040 long form, which only the richest 30% fill out (generally speaking). If a person with lower income fills out the 1040 long, their standard deduction will be larger than the exemptions.

Tax cuts are a different matter. To my knowledge, all tax actions since Reagan have benefited the rich the least and the poor the most, when the tax cut is viewed as a percentage of adjusted gross income. Obviously, in gross total dollars, the rich make out, because they make more.

Why do we tolerate off shoring of currency as a tax dodge?

Fixing this is part of the current tax package.

Our tax policy has created a massive amount of the inequality that we see today and these policies are not even called out for it.

Yea….well….its more complicated than that. From the article, the conclusion to be drawn is that much of our inequality is not systemic, but skewed to a couple of industries.

But, more broadly, although tax policy is *part* of inequality……it’s probably not responsible for most of it.

Written by

Data Driven Econophile. Muslim, USA born. Been “woke” 2x: 1st, when I realized the world isn’t fair; 2nd, when I realized the “woke” people are full of shit.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store