Posted April 28, 2012
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That's sort of the problem, people are outraged by efforts to redistribute the money back that had previously been redistributed to the greedy.
I believe that there should be a federal tax plan that is much simpler and much more difficult to abuse. Say a flat tax of around 20% for everyone with a $15,000 deduction per adult filing (so $30,000 jointly). There would either be no further deductions (my choice) or all deductions would apply equally, without phase-outs or exceptions, to everyone, regardless of income. There would be no difference between passive (capital gains) income and regular income. No more special 'capital gains rate' would apply to taxes. Corporations would have their federal tax rate reduced to 0%, since the earnings would be fully taxed on employee income and on investor returns. Thus, there would be no more 'double taxation' of corporate earnings.
As for redistribution of income, as I mentioned earlier, I think it is tantamount to government enforced theft. I am all for giving to charity, but I don't think it is the role government to force a 'fair' distribution of wealth. I tend to agree with the quote often attributed to Alexander Fraser Tytler: "A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy." The first portion of the quote is obviously occurring (at least to me), and I would like to avoid the last part, if possible.
Oh, and by the way, 100% of my income is from passive investments. The tax plan I proposed would detrimentally affect me, personally, more than most people. My net worth over the past 4 years has increased by a decent amount, but, through capital gains rates and various deductions, I haven't paid a cent in federal taxes since Obama took office (does that make me one of the 1%? :P). Under my plan, I most certainly would have owed some taxes. Like I said in my original post, my stance on these issues are philosophical in nature, regardless if they are good or bad for my personal bottom line.
Now, can we please drop this? I thought we were talking about a video that was lamenting the state of online gaming at the moment, not talking about government programs or taxation.