And wealth will leave the country due to tax avoidance schemes

no point of it then

@Neco2040

That’s like asking (for something more trump-y) why we should build a wall if it doesn’t stop all illegal immigration

It doesn’t accomplish everything, but it doesn’t set out to accomplish everything, and it does accomplish a good amount (depending on your priorities)

It’ll collect more revenue from people who have more money than they could reasonably derive true benefit from

A wall stops 95% of border crossings

However an income tax like that has an effective rate of 35%

In other words you don’t change the amount of tax coming in

It’s just avoided

If anything you might deter investment

And doing these tax hikes will be accompanied with increased spending which will shift the burden into the middle class

I dunno why the democrats are against a 5.7B wall that actually helps America but are okay with 150B to Iran hoping that they don’t continue to try and develop WMD’s

It would increase revenue though

And how does spending the tax receipts from the highest income earners shift the burden to the middle class

Because you’re not getting the actual tax from 70%

You’d be getting 35% odd

So the shift of the spending would go down towards the middle class more

since the top don’t pay anymore

And raising taxes after a certain point decreases revenue

Laffer curve

Yes; the most accepted point for that critical point is 70%

And can you explain more on how the spending would “go down” toward the middle class?

No it's not

there is no "most accepted"

we don't know what the tax rate is

@Leo (BillNyeLand) Because since you increased spending on the hopes of the tax revenue rising due to the 70% tax rate. However the actual tax paid was around 35%. This is not even close to what was predicted, thus the cost goes down the middle class.

Remove tax abatements

But no one expects an *effective* tax rate of 70%

If they wanted an effective rate of 70%, they would set an effective rate of 70%. But they only want a *marginal* rate of 70%.

And government should live within its long-term means anyways, but that’s unrelated to the current or proposed tax rate.

They want an effective tax rate

thats the whole point

mostlikely would try to close loopholes

Which will result in a crash

They can close loopholes

yes and that increases the tax rate closer to 70%

Which is a crash

And AOC herself said she knew 70% marginal wasn’t 70% effective

And intended the former and not the latter

where