Increasing numbers of American billionaires have appeared since the Republicans began cutting taxes for the rich, first under President Reagan, then under Bush Jr (Bush Sr condemned this as “voodoo economics” even before Reagan’s time) and finally under Trump. And it’s time we ended that crap forever! The proliferation of billionaires is not a sign of economic prosperity, but distress, since the members of the working class have not increased their buying power in the same time. That would only happen if their wages went up, but economic conservatives tend to oppose that and thus the federal minimum wage remains at $7.25 per hour. A person CANNOT make a living at such a wage!
It is a moral and logical imperative that we raise marginal tax rates on the wealthy to properly fund the government and prevent economic tyranny from those same rich people.
Imagine such a tax policy in place. If we have a tax rate of 0% for people who make up to $50,000 per year, a rate of 30% on those who make up to $100,000 per year, 50% for those who make up to $1,000,000 per year, and finally 90% for those who make above $1,000,000 per year, here’s what the results would look like.
First example is a person with annual wages of $90,000. He would pay nothing on the first $50,000 and then 30% on the remaining $40,000, so he would pay $12,000 in tax, resulting in his keeping $78,000.
Second example is someone with annual wages of $800,000. He would pay nothing on the first $50,000 and then would pay 30% on the next $50,000 ($15,000 in tax) and then 50% of the remaining $700,000 ($350,000 in tax). Thus he would keep $435,000.
Finally, you have someone who makes $100,000,000 per year. His tax rates would be nothing on the first $50,000 and then would pay 30% on the next $50,000 ($15,000 in tax), 50% of the next $900,000 ($450,000 in tax) and finally 90% of $99,000,000 ($89,100,000 in tax). Thus he would keep $10,435,000. He would still be rich!
The ONLY ethical reason to lower taxes on ANY people is if those tax rates were so high that they were keeping people in poverty. That only applies to the working class.
As I noted a long time ago:
We delude ourselves into thinking that if having a million dollars is good, having ten million must be better, so we strive for that while never thinking of anyone who considers himself lucky to even have $100,000. Or never gets even close to having that much.
Greed is a vice and we must do everything we can to condemn it and prevent people from getting away with it.
Tax hikes on the wealthy are to punish GREED, not success. There’s nothing wrong with making enough money to live comfortably on, but if you make enough to become a BILLIONAIRE, you become more of a parasite than a contributor to the economy.
And hearing that so many of these rich people have become even RICHER even in the economic downturn caused by the Covid-19 pandemic (throwing millions of workers into unemployment) makes me want to go after them!
Incidentally, Wayne Allyn Root, the guy who wrote that cynical hit piece I quoted in the blog entry about President Obama, was later disowned by most of the other Libertarians because of his racism and his constant lying. He is now a Republican and ally of Donald Trump. If I were God, I’d send that bastard to hell!
And here is a cartoon that also explains how marginal taxes work: