And it’s true that there’s never been an effective tax rate above around 45-40%, but the 70% marginal rate has no intentions of achieving a 70% effective rate either. All it would do is increase the ~15% effective rate paid by most of the top right now to ~35%

I also don’t think that they should be taxed at 70%

I just don’t think it would actually lead to the catastrophe Sid describes

It’s not contradictionary , I’m saying because of the massive amount of loopholes , the rich will not pay more because they will avoid it all. However in the event the loopholes and such are closed, the 70% tax will be effective and would mean the entire group being taxed that high WILL leave the country. This would hurt the economy big time. And according to your Keynesian theory, boosting AD is the main goal, which contradicts itself right here. @Leo (BillNyeLand)

The effective rate is not 15% for starters. The top tax rate in 2012 was 35%, the effective rate payed was 27% by the top 0.1% and 25% by the top 0.01%.

Of course not, AOC and the rest of them truly believe the tax rate was high as 90% and was payed back then, which is why the believe they’ll get 70% of the income from taxing them that high.

It would definitely lead to a collapse, the country would lose big economic agents.

Not to mention a lot of tax revenue lost.

@Kylo Ren
should they be taxed 70 fucking percent? No
should they be taxed more than others? No
should they be taxed atall? No
Should anyone be taxed atall? No

but what if we made them stay?

Taxation is theft, abolish income and corporate tax

Maybe built a wall around the coasts

plANe

we have no-fly lists

just put all rich people on them

suIcIDE

kek

Sorry, I was using old data for current effective tax rate data

However, closing all tax loopholes and raising the top marginal tax rate to 70% are two different things.

well taxing is a necessary evil

nobody likes it but it has to happen

If there could be no taxes that would be optimal

Yeah but you can't not have taxes

it would be nice

but that can't happen

But taxes are what we all agree to pay in exchange for the services provided by the government and society

right

Unless you don’t agree

like libraries, roads, the military, police and such

In which case, you forfeit your right to participate in society by breaking its rules

Yes

Nobody agreed anything

there is no social contract

Although some taxes actually are helpful

It's more of a "don't pay you get taken away"

every citizen uses roads

every citizen uses police at least once

Like tax on cigarettes, which saves money overall by decreasing health problems

I mean

I mean it's not really helpful

Let’s say there’s a club

cigs have inelastic demand