Bernie Sanders Would Tax The Income Of The Wealthiest Americans At 90 Percent

[salib]

61. Loopholes are important, but not the real point of a near 100% top marginal tax rate.

Loopholes are important in terms of ensuring that taxes are collected and that the Govt gets enough to function. It is important to revenues.

However, as important as that is, the point of the high marginal tax rates (what is almost equivalent to a maximum wage) is to ensure that money is invested, to become part of the larger pool of available capital, rather than what has been happening with lower rates but fewer loopholes, which is that the money is simply being hoarded.

Thus, unless you make it basically pointless to keep paying a few people more and more (because as some point which is the top marginal rate you cannot really make any more money), people with the wherewithal will simply hoard, no matter the loophole elimination. It must be near 100% rates to accomplish this.