Discussion 70% U S Tax Rate

[ET180]

What percentage of people were actually paying 90% in the 50s? Back then it was a lot easier to hide income.

"Hauser's law is the proposition that, in the United States, federal tax revenues since World War II have always been approximately equal to 19.5% of GDP, regardless of wide fluctuations in the marginal tax rate.[1] Historically, since the end of World War II, federal tax receipts as a percentage of gross domestic product averaged 17.9%, with a range from 14.4% to 20.9% between 1946 - 2007.[2]"

https://en.wikipedia.org/wiki/Hauser's_law

 

[Cuddles]

What percentage of people were actually paying 90% in the 50s? Back then it was a lot easier to hide income.

"Hauser's law is the proposition that, in the United States, federal tax revenues since World War II have always been approximately equal to 19.5% of GDP, regardless of wide fluctuations in the marginal tax rate.[1] Historically, since the end of World War II, federal tax receipts as a percentage of gross domestic product averaged 17.9%, with a range from 14.4% to 20.9% between 1946 - 2007.[2]"

https://en.wikipedia.org/wiki/Hauser's_law

https://en.wikipedia.org/wiki/Hauser's_law#Commentary_and_criticism

 

[Sig]

Why would anyone ever risk $1 at that marginal rate? If they are wrong, they lose the $1. If they are right, they make $0.30. That's a horrible risk : reward proposition. In some states and income tax brackets, the marginal rate for many is already at 50%. At that point, the only option left for ambitious people who want to keep more of what they earn is to leave...as happened with France. Of course, then they will raise the exit tax (and lower the eligibility threshold).

I've often predicted that bitcoin is eventually headed to $0. But if we do see a wealth tax as Elizabeth Warren and other politicians have been asking for, then I'd have to reconsider my bitcoin thesis as tax evasion becomes much more enticing for many.

Actually if you're wrong you get a $.70 tax shield for the places you were right!

 

[ET180]

Actually if you're wrong you get a $.70 tax shield for the places you were right!

That's true. Although no one invests expecting to be wrong. On the first trade or investment, one faces that make 0.30 or lose 0.70 proposition. To be fair, I actually put that type of trade on today in AMZN (sold a credit spread). Of course, the higher risk, lower reward was reflected in the higher probability of a favorable outcome.

 

[Sig]

That's true. Although no one invests expecting to be wrong. On the first trade or investment, one faces that make 0.30 or lose 0.70 proposition. To be fair, I actually put that type of trade on today in AMZN (sold a credit spread). Of course, the higher risk, lower reward was reflected in the higher probability of a favorable outcome.

I was being a little facetious as well of course

 

[Covertibility]

LOL, the non 1%er's defending a lower tax rate for the rich. Only in America!

 

[ET180]

LOL, the non 1%er's defending a lower tax rate for the rich. Only in America!

My reasoning is based on logic, not how it affects me. Although I realize that if the wealthy are disincentive from taking risk and investing, then that will affect growth and opportunities for all of us.

 

[southall]

LOL, the non 1%er's defending a lower tax rate for the rich. Only in America!

Anyone that makes 50k usd is in the top 1% of income earners and rich to most people

 

[Sig]

Anyone that makes 50k usd is in the top 1% of income earners and rich to most people

$421,000 to be a 1 percenter in the U.S., quite a bit more if you live in a blue state where economies are more robust and incomes are higher.

 

[srinir]

$421,000 to be a 1 percenter in the U.S., quite a bit more if you live in a blue state where economies are more robust and incomes are higher.

1%er is better off by describing net worth, since income levels are noisy.

1%er by net worth.

https://dqydj.com/who-are-the-one-percent-united-states/