Quote:
Originally Posted by djplong
ijusluvit: You *do* realize that it was getting RID of the 90% tax brackets that contributed to the greatest economic expansion thic country ever saw, yes? When you make it so that dollar earned has the government taking MORE THAN HALF, you have provided two major disincentives - One, the disincentive for making it (why bother if the government is going to take half?). Two - drive the economy underground so as to evade taxation.
This is why Reagan's tax cuts provided such a jolt.
And as far as the problems you have with 'the bonus structure', let me tell you something. You may have an argument with 'the fatcats', but speaking as one of the lower-level employees of Fidelity Investments in the 1990s, I can tell you that a lot of middle class people DEPENDED on those bonuses. At least at Fidelity, they were paid out in early December. If you were really good, you could get as much as a month's pay in one lump sum. Let me tell you, that made Christmas shopping a lot easier  I certainly was NO millionaire - I didn't even make $50,000 back then, and had a wife and two kids that I was supporting.
VK: I've heard of the VAT and although I'm not fond of it, I'm certainly willing to listen. One of the knocks against it (again, from what I've heard) is that the government can bury tax hikes, hiding them, in effect. |
You make a good point about tax rates exceeding 50%. However I called my suggestions "targeted and temporary", aimed specifically at those who have been, and still are receiving huge awards, for no other reason than finding themselves on the upper rungs of the corporate ladder. One pretty good example would be the Goldman Sachs execs bonuses awarded after they tricked AIG into insuring billions of dollars of bogus mortgages. I believe it is important for our economy and for aour survival as a nation, to significantly blunt the "bonus culture".
In previous posts you have made it clear you are not one of the 'fatcats'; that you have worked hard to maintain a modest income level and that you have had some some difficult times. I have nothing but respect for that. I identify with and see myself in your shoes and I agree with almost everything you post. I'll bet you deserved every penny of the Fidelity bonuses you received. In my tax structure you would get EVERY PENNY of that bonus you describe above to do your Christmas shopping. But, if you had become a corporate star and your bonus pushed your annual income above 250k, the dollars above that amount, I would be favor taxing it a little higher. Sorry. That's my heartless solution.