General Discussion

JHB

(38,090 posts)

22. Why?

Mon May 7, 2012, 11:36 AM

May 2012

The main effect of high marginal tax rates isn't the levy itself but in changing the economic landscape about what decisions are prudent to avoid paying that high rate.

Longer-term stability and reinvesting in the business becomes more favorable than maximizing what you get in the latest quarter, because after a point Uncle Francois (or Sam) gets the lion's share. And it certainly takes some of the charm out of some of the big derivatives gambling, or the sort of buy-up-and-liquidate that Romney's put back in the news.

It's actually a market solution to that sort of extractive practice. It changes the incentives. We're not under any obligation to make it easier for people who are already wealthy to get even more wealthy as fast as possible, especially when they do so by squeezing everyone else.

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Hollande favors a 75% tax on the wealthy! [View all] aquart May 2012 OP

75% at what point? MrSlayer May 2012 #1

No idea. I heard it on the TV news which is notoriously detail poor. aquart May 2012 #2

I think I read that it was a million euros. n/t pnwmom May 2012 #4

$1.3 million dkf May 2012 #6

Top tax bracket was 91% under Eisenhower MannyGoldstein May 2012 #3

The difference is in the times... TedBronson May 2012 #10

Oh, yeah, we can't lose Mister Charlie. What would we ever do... jtuck004 May 2012 #12

Where would they go? Confusious May 2012 #13

Probably one of these countries towards the top... TedBronson May 2012 #14

I'm sure an american Confusious May 2012 #15

They might leave? AnotherMcIntosh May 2012 #16

Let them leave. Freeze the money. Seize the assets. aquart May 2012 #27

They'd have to give up their US passports. closeupready May 2012 #18

Not if there is international cooperation on a crackdown -- and that is entirely JDPriestly May 2012 #20

In FDR's time, there was only one person in the top tax bracket. Kaleva May 2012 #26

He has also promised to balance the French budget in 5 years. dkf May 2012 #5

Yes, there is little difference between Hollande and Sarkozy. girl gone mad May 2012 #8

Yup, Greece is the main story today. Prometheus Bound May 2012 #11

Citi says 75% chance Greece exits Euro. dkf May 2012 #24

If Citi is trying to cause a panic, ask why. aquart May 2012 #28

Our billionaire controlled media will make him out to be a villain! dmosh42 May 2012 #7

He's a new Hitler! nxylas May 2012 #9

It will be interesting to see how that works out. Nye Bevan May 2012 #17

No, they've still got Switzerland for banking, the US doesn't closeupready May 2012 #19

Did you look at the local council elections in Britain? aquart May 2012 #29

Think that's a little too high, myself Prophet 451 May 2012 #21

Why? JHB May 2012 #22

I admit to being an economic doofus Prophet 451 May 2012 #23

Where? aquart May 2012 #31

The UK for example Prophet 451 May 2012 #32

Of course, if they did like the US and tax income wherever closeupready May 2012 #34

Not at all. The point is to crush the power of the ultra-monied class. aquart May 2012 #30

I'm wondering if that will actually happen... cynatnite May 2012 #25

K&R grahamhgreen May 2012 #33