Taxation, some basic math
And progressive tax rates.
“But those rich people make more, they should pay more”. Fucking DUH, they would with a flat tax rate. 10% is good enough for God, it should be good enough for government? Well, yes actually. Let us call it 15% to cover the military and so on. Let’s keep that bottom cut-off of $25,000. Below that, you pay nothing. Since you paid in nothing, you get no return. Anything above that, you pay 15%. Period.
The 1040 turns into a postcard. $26,000-$25,000=$1,000×15%=$150. $50,000-$25,000=$25,000×15%=$3,750. $26,000,000-$25,000=$25,975,000×15%=$3,896,250. Boom. Them evil rich people still pay more than the secretary at the office. And it’s still worthwhile to build the business, that makes the money, which inspires the creators to bother to hire people, to build the business, to make the money.
If I know I can make the profits, and I know that I can keep my money to reinvest so I can make even more, I’ll do it. But there comes a point where I know if I make even more I’ll actually be seeing less. Why bother making more than that point, why bother making the business bigger, hiring more people to work it, etc, if I know beyond X is not worth the effort?
Why are big money people putting that money in Switzerland or the Caymans? To hide it from the fed. Why are people putting their businesses in China or Mexico? Lower taxes than America. Lower the taxes to where it becomes more attractive to keep it here, or other investors from other countries to come here. Sam Walton knew lower prices mean more sales. Perhaps you don’t have as much profit per sale, but if you only sell one at a $10 profit versus three at a $5 profit, you now have lost $5. Word spreads, you at the higher individual cost go out of business, and the cheaper place sells more.
How hard is that for these “ridiculously intelligent” people in DC to understand?