And once the asset is sold, that's a taxable event.
If your bank determines that assets you post for collateral are worth 100mn or more, that's a pretty good indication.
And there are better ways to deal with our oligarchs than braids dead proposals. Start breaking up their monopolies for one.
1. Assumes the asset in question is publicly traded.
2. Assumes the publicly traded asset has a non trivial amount of trade volume 3. Assumes asset price is relatively stable, moving in a narrow band along a clear trend-line
4. Assumes you have defined the price from the stock information (last trade before close. Daily average, etc)
5. Assumes holder's position is small enough not to affect stock price were they to sell.
And stocks are the easiest to do this with!
Look at the Trump vs NY court case for the value of his house in FL. Unlike the valuation imposed by government fiat, the valuation was agreed to freely by the parties. The courts found it excessive (and it might be) and proposed a valuation so ridiculously low it alone gives Trump grounds to appeal that the judge is either incompetent on the matter or has a personal bias and should anyway have recused himself.
For the proposal to work you would need an estimate good to within less a percent. Or lawsuits galore.
The art is very valuable, financially, because people are willing to pay for it.
However, absent the market clearing the asset, its value is impossible to objectively evaluate. Even if we had an objective function to evaluate art the basis of evaluation is incorrect - the artwork is valuable as an instrument of government corruption
So m, if we can't even agree on the reason why Hunter's artwork is worthwhile, how can we even possibly evaluate it?
... What people are suggesting is to take money from some productive enterprises and put it towards other productive enterprises such as education, medicine, public infrastructure, etc. Enterprises which have more benefits beyond simply increasing the bank account of entrepreneurs and fund managers.
I guess it's not impossible, we do it for property tax on real estate. There are real costs though.
Are we talking about Mar-a-Lago here?
> the valuation was agreed to freely by the parties
Which valuation is that? The one from Lawrence Moens?
> When calculating wealth tax, you must include any assets that you own at the end of the year. These assets must generally be valued at what the asset is worth on the open market. However, an exception is made in the case of housing, and a lower value, known as the tax value, must be used when calculating wealth tax.
Two things stand-out to me:
(1) "assets must generally be valued at what the asset is worth on the open market". I guess there will be GAAP accounting rules about how to value less liquid assets. Tradable securities are easy to value; other things, like artwork are less easy to value. In the case of a car, an accountant could reasonably use an online used car marketplace to find a value. (The US has something called the Kelley Blue Book.)
(2) "an exception is made in the case of housing". It sounds like there is a totally different set of rules for taxing housing (land+building).
The banks agreed to the valuation and under no coercion agreed to lend money with it as collateral. Trump pays off that loan and the banks are made whole.
By contrast my school board telling me my house is worth 600 k instead of 400 k scares the shit out of me. I can't agree to it and my only recourse are the courts. The school board has lawyers on staff so it costs them nothing if I sue.
This is a rather large assumption. One's assets might be invested inefficiently, as those who financed Elon Musk's takeover of Twitter have learned to their cost.
This is just wrong. The very low valuation was not proposed by the NY court, but by the Palm Beach County tax appraiser. This is because the property is deeded for use as a social club rather than a private residence (a condition of sale when Trump purchased it iirc, and one which affects future disposal of the property) and as a commercial entity the value is appraised as a multiple of business income.
This doesn't work if the shares have low-to-zero liquidity, similar to housing or land. In environments where it can take days to find a buyer, the price slippage could be more than the tax itself.
This is emotional pleading, not a serious argument of any sort, based on the core premise of "this person has more money than me, and I don't like that, therefore I should get some".
> It’s simply pay for use.
This is false. Toll roads are "pay for use". Capital gains tax is, objectively, not "pay for use".
> Anyone with more than 100M in assets has used the system a shit ton
There's zero evidence that supports a strong correlation between how many assets someone has and how much value they've obtained from government services. This is just entirely fabricated.
> and owes a lot back into it
...which they've already actually paid through taxes on profits.
This bundle of falsehoods is just a thin facade around the emotional plea that "someone having more money than me is bad, and I should get some of it".
Proposing that we should continue to throw more money at infrastructure, before diagnosing and fixing the problems that are causing that inefficiency (at which point, sure, double the infra budget - as long as we're getting good value, the absolute amount can go up as far as I'm concerned), is straight-up malicious.
The only people who make the argument to keep increasing the infrastructure budget before fixing the problems are those generically interested in throwing more money and power at the government, not those actually concerned about infrastructure (who will seek to fix the problem first).
Giving money to ineffective organizations is throwing good money after bad. I'd love to see competent government that can effectively use funds, but I'm not seeing a lot of evidence for it these days. There needs to be deep reform and anti-corruption efforts. Good luck doing that without the status quo powers pulling out all their dirty tricks.
Wealth and income inequality has well-studied negative effects on society.
The ability for a single person to own over $100m in assets is not a human right. It's not a protected class or status. It's an abhorrent misappropriation of human resources. It is a societal mistake.
And let's not forget, people like Elon Musk, Jeff Bezos, and Mark Zuckerberg have multiple THOUSANDS of $100 million dollars in net worth. This completely insane $100 million figure is so small to those men that you would have to earn $100 million every single year for over 30 lifetimes to get to their level of wealth.
It's not about demanding some of the money from the wealthy. That's a shallow way to think about it. It's about the inherent power imbalance and exploitation that comes along with being excessively wealthy like this.
Think for a second what would happen to you if Jeff Bezos banned you from using all Amazon products. Would the Internet even work anymore for you? You know, every company has the right to refuse service to anyone. This one man can basically cut you off from television, e-commerce, Internet, employment (if you do engineering work on AWS), even Thursday Night Football.
Pointing out that toll roads are "pay for use" is factually true.
Capital gains tax is, factually, not "pay for use". There's no usage that is being metered.
You also claimed "Anyone with more than 100M in assets has used the system a shit ton" and I pointed out that there is no evidence that supports a strong correlation between how many assets someone has and how much value they've obtained from government services. This is, again, a fact - had you had any evidence against this, you could have put it here, in your reply. But no, you didn't have evidence, so you tried to (incorrectly) portray it as an "opinion".
You calling my true statements "opinions" proves that you cannot differentiate between opinions and reality. The fact that you think that pointing out that capital gains tax is not pay for use is a conjecture proves that you literally cannot tell the difference between facts and opinions.
Because, factually, the statement "Well when you have over 100m in assets in your pile of gold in the dragon lair, its time to be extractive." is emotional and meritless. There's literally zero value here. It's an opinion. In fact, you doubled down on this throughout your response.
> It's an abhorrent misappropriation of human resources. It is a societal mistake.
This is also factless, meritless, emotional pleading.
> And let's not forget, people like Elon Musk, Jeff Bezos, and Mark Zuckerberg have multiple THOUSANDS of $100 million dollars in net worth...
As is all of this.
> It's not about demanding some of the money from the wealthy.
That's literally what you're doing.
> It's about the inherent power imbalance and exploitation that comes along with being excessively wealthy like this.
It's clearly not about the power imbalance and exploitation, because someone genuinely interested in curbing those effects would address them directly. The fact that everyone who claims to care about the destabilizing effects of concentrated wealth immediately goes to "we should take the wealth away" instead of "we should try to figure out why concentrated wealth is destabilizing and address that" is extremely strong evidence that the goal is, actually, to take money from the wealthy.
If you consider pointing out that you're not making logical arguments, and instead engaging in emotional pleading, to be insulting (especially when, upon that being pointed out, you can't make a rational argument and instead continue pleading), then you should take a step back, because there's a good chance you're engaging in advocacy and emotional manipulation as opposed to genuine, rational arguments in good faith.
Do we make them give 20% of their unrealized paint to members of the public so they can make their own paintings, hoping they too will fetch $1m each?
If the IRS took control of 20% of the paint, borrowed against it to fund the state, but then the artist decided to quit does the government somehow force them to paint?
If the artist said this ahead of time and this was priced into the future value of their paintings (now worth $0 because there will be 0 paintings) does the IRS revalue their unrealized gains down to $0bn?
As someone who thinks wealth inequality is a huge problem in the US - I'm genuinely curious as to what you would propose to address this problem "directly". Because to me, this tax proposal is addressing it directly.
Is the centralization of power bad?
If yes to both, then the centralization of money is bad.
You have no argument against this. The best you can do is to attempt to refute the notion that money is tantamount to power, which will be laughable. But please do try.
>It's an abhorrent misappropriation of human resources
It's not a misappropriation; for a company founder, they _created_ those resources. Without them, the resource wouldn't exist. And if you punish them a lot, such people will all go somewhere else, and then you'll have no businesses or jobs and everyone's standard of living will be worse. This has been demonstrated historically countless times, every single case of the government mass-appropriating the wealth of the wealth led to extreme poverty; Maoist China, Stalinist Russia, Pol Pot's Cambodia.
>Wealth and income inequality has well-studied negative effects on society.
Negative as defined by some left-leaning social scientists. Conversely, punitive taxation has been overwhelmingly shown by economists to lead to reduced growth in people's standard of living as measured by income and GDP.
Created, or taken the fruits of others’ labor? Obviously, no Amazon-sized company is the work of a single person. Was the pharaoh, sitting in luxury, more responsible for the creation of the pyramid as the architect or the common slave building it?
We used to tax the rich much more than we do now, and government bureaucrats were not obscenely wealthy then as you seem to be implying.
Also, the US government spends more money than it accrues every year, so there isn't any consolidation of money happening in the government (nor will there be if taxes go up).
You see a problem and you refuse to fix it, and instead look for a root cause that should be addressed instead, that will then fix the problem itself.
The problem with that kind of thinking is that that’s not how the real world works. The problem of homelessness is that people don’t have homes. It’s not something else. Give people homes and you solve it. But people with RCS try to solve it through jobs, training, education, etc. All those things are nice but they won’t fix the problem, which is that people are homeless.
Likewise, the problem of wealth inequality can only be solved by reducing wealth inequality. There is no other solution. Just tax rich people until they’re not rich anymore.
Taxes don’t fund the government. All of the money the government collects via taxes is written off in a spreadsheet and disappears. The government then creates money, however much money it wants to, in order to fund its activities.
You learned in school that electrons orbit atoms, but that’s not how it really works is it? Trying to reason with a simplified model in mind can only lead to misunderstanding.
Electrons don’t have orbits. Capital gains aren’t paint.
What you need is to remove barriers to competition and enforce antitrust laws.
This is inaccurate. We used to have higher tax rates on paper but nobody actually paid them because the tax code of the time had many enormous loopholes that have since been closed, which happened at the same time as the rates were lowered. Real government revenue per capita has been increasing over time.
Taking money away from billionaires just reduces their power, it doesn’t make any difference to the government itself.
And btw, the status quo you mentioned is funded by the billionaires that would be affected by this tax.
Have you considered how this is supposed to work? If being homeless means you get a free home, millions of people would purposely become "homeless" so they could eliminate their housing costs. Also, homes are quite expensive, especially in areas with high homelessness, so where does the money come from?
Meanwhile one of the primary actual causes of homelessness is zoning that prevents new housing from being built, causing people to be unable to afford it. If you just have the government buy up existing housing stock for the homeless, the scarcity is not resolved at all, you just cause new people to become homeless because you remove the housing they'd have bought from the market.
To actually solve it you can't just do the naive "have the government pay for it" thing, you have to understand the root cause, which is that you have to not just give housing to the homeless but build new housing across the overall market so it isn't in undersupply.
> Likewise, the problem of wealth inequality can only be solved by reducing wealth inequality. There is no other solution. Just tax rich people until they’re not rich anymore.
This is exactly the same level of not thinking it through. Mark Zuckerberg has billions and it gives him control over Facebook. But if you take his money and leave Facebook, someone will still be the CEO and that person will still have all of that power. The problem is not the money, it's the size of the company.
For me, it’s as simple as: you can only tax actual dollars, not unrealized, hypothetical capital gains. What’s the best way to get that point across?
Homelessness crisis -> provide housing for all -> not enough supply? build more -> can’t build because of zoning? fix the zoning -> etc
It’s the same thing with wealth inequality. Tax him until his wealth isn’t that unequal. If you then decide that the CEO of facebook has too much power you can break up Facebook, but that’s a separate issue.
Personally I disagree, because while the gain hasn’t been realized, you can act on the assumption that it can be realized at any point. There are really degenerate strategies once you get to this level of wealth, such as taking out loans with these “unrealized gains” as collateral and realizing the gains without paying taxes.
This is an ad hominem fallacy/attack. Instead of discussing the actual argument, you instead attack the person making it.
> Likewise, the problem of wealth inequality can only be solved by reducing wealth inequality.
This is an opinion, completely non-factual and unjustified by any reasoning. And, the only possible underlying belief from this paragraph is "some people having more wealth is intrinsically bad" - completely separate from the negative societal effects of that wealth, and from any moral framework that even allows you to describe "bad". You just believe that it's bad.
Wealth inequality doesn't have any direct effects - merely having more money than someone else doesn't do anything. It's only after the money gets spent that you see negative effects, and the magnitude and type of spending determine the effects. It's more accurate to call this "spending inequality".
This proposal doesn't address the problem because it doesn't affect spending - only wealth. (a capital gains tax is actually a deceitfully name wealth tax) Wealth doesn't do anything until it's spent. That's the main problem with this proposal - it doesn't even try to address the problem it pretends to address.
As to how to actually address the problem: there's two types of wealth inequality that most people are concerned about - that between the super-rich and everyone else (discussed here), and that between the poor and everyone else (not discussed).
Thank you for engaging honestly, it's a breath of fresh air in this thread.
The ~wealth~ spending inequality problems of the super-rich seem to be mainly manifested in corruption - donating large amounts to political groups, and lobbying. You want to regulate/outlaw those specific things.
However, aside from corruption (which is a huge problem) most of the spending inequality problems seem to come from the middle and lower class. For instance, cost of housing and living - I think that that's being driven by the middle class having more access to capital in a supply-constrained environment (which is partially caused by big hedge funds buying up housing to rent it out - which again is a separate problem that can be addressed separately and isn't fixed by the capital gains tax). People like Zuckerberg aren't personally buying up housing all over the US on their own - this problem isn't at their level and this tax wouldn't help.
1. inflation - a regressive tax that disproportionately takes from the poor
2. taxation as a % of wealth - takes from everyone equally
The fact is the rich pay a WAY lower tax rate, we can spend the next 1000 years playing legal cat and mouse over how to tax these people but it doesn’t get us closer to option 2 unless the government gets aggressive about collecting tax.
https://www.brennancenter.org/our-work/analysis-opinion/dang...
So... Harris 2024, yes?
Snark aside, as long as democracy functions, all power ceded to the government is ceded willingly by a majority of the people.
That is, by definition, the people exercising their collective will, which is to say it is the decentralization of power.
And please, we are nowhere near communism in the USA. We aren't even approaching socialism, despite what your bogeyman solicitors are shouting at you.
Do better.
Even the Tax Foundation, which is a biased source that is anti-tax in general states that the effective rate for the top bracket was 6% higher then than it is today (https://taxfoundation.org/data/all/federal/taxes-on-the-rich...)
> donating large amounts to political groups, and lobbying
Those are indeed ways of exercising power that can be outlawed, but there are other ways of exercising power that are impossible to outlaw. For example, the ultra-rich can spend far more money on lawyers than anyone else. How are you going to outlaw that? And even the charitable contributions of the ultra-rich are controversial and probably wouldn't happen in a true democracy. E.g., the Bill Gates foundation has a lot of influence on global health spending[1]:
> If you look across global health, they’re funding everybody. Nobody is more than one degree removed from the Gates Foundation. So it’s really difficult to avoid the foundation’s money.
Basically they wield so much power that even their charitable contributions to society are inherently political, unlike say if I volunteer at my local rescue mission.
[1] https://slate.com/technology/2021/10/bill-gates-foundation-c...
EDIT: added the word "extreme" to clarify
People on welfare aren’t getting nearly as much out of the system as people who have amassed massive wealth, so they should put in substantially less.
https://fred.stlouisfed.org/series/FYFRGDA188S
Before that the rate was significantly lower.
Like the fact that wealth inequality is bad, and we know that it’s bad. It’s just a fact, and if you want to ignore the facts because your opinion doesn’t agree why them that’s ok, but it doesn’t make it any less true.
GDP is not income. Federal receipts aggregated across all tax brackets provides zero information about what the highest tax bracket paid.
Anyway, here's the problem with unrealized gains. If stock go brrrrr up 10-fold, wow! Huge unrealized gains! Get taxed on it. Unexpectedly, now the stock crashes, or it's found the company was doing something illegal, or the finances were fraudulent, or it was a ponzi scheme, etc, etc. Now stock is worth -zero- dollars overnight. Now I don't exactly what the logistics are going to be, but even if you hit those unrealized gains in tax year 2023, and the stock collapses in tax year 2024.. you had better get those gains that you were taxed on (but never got!), you had better get them back, plus interest.
You can find the raw data here though (Tables II: distributional series, you're looking for tab TG2b): http://gabriel-zucman.eu/usdina/
And then you can see that the highest effective income tax rate ever paid by the top 1% was 23.4% in 2001. The most current number from that table was 2019 when it was 20.3%. Whereas the highest rate from the mid-20th century period when they were alleged to have been paying such high income tax rates was 21% in 1945. In 1953, when the US had its highest marginal tax rates (92%), the effective income tax rate on the top 1% was 14%. Which is more typical for the period; 1945 was an outlier, it being the height of WWII.
The thing that has actually come down is not effective income tax rates on the top 1%, it's corporate income tax, which is a consequence of globalization. "Corporate income tax" is not a good fit for an international supply chain because tax avoidance and jurisdiction shopping is too easy if you're trying to tax something that only exists in a spreadsheet ("corporate profit") instead of something that has a definable physical location (goods, workers, real estate, etc.) So corporate tax avoidance is higher (because of transfer pricing etc.) and corporate rates are lower because it's easier for corporations to set up shop somewhere else if the somewhere else is taxing them less, which puts tax jurisdictions in competition with each other. But that's not an easy one to fix without abandoning globalization, so other taxes got raised to compensate (which brings us back to, government receipts as a percent of GDP haven't really changed).
That big pile of sketches you made as a teenager? Well it says here that some person bought an “early Banksy” for $500k this week so we the government would like 20% of your $49,999,995.60 unrealized gain by next Tuesday please.
What? You burned them in an attempt to avoid the wealth tax? We have a dealer from on the line saying he’ll pay $2m for the ashes and $10m to remove the fire place for display in Brad Pitt’s private gallery. Tap tap tap 20% of $12m less $2k for your upfront building costs is… let’s just round it up to $2.5m. Please submit your check by next April.
Oh hang on, Elon Musk has tweeted saying he’ll pay $69m for the fireplace plus a $420k bonus payment if you throw in some vials of your own tears. He wants them to hand out in gift bags at his next toga party, apparently. Can you get back to us with how well hydrated you are so we can run the numbers on these unrealized capital gains?
The numbers I was looking at before were referring to the overall tax rate, which included both income tax and corporate taxes. With that said, the overall tax rate for the top 1% has gone down significantly since 1950 (from 45ish percent down to 32ish percent). As you mentioned, that is mainly due to the lower corporate income tax rate.
Given that drop in the overall tax rate (along with rising income inequality and increasing debt spending), it seems clear to me that the income tax rate was not raised enough to compensate for that loss but that's a separate discussion.
All this to say that - my original point that the rich were effectively taxed higher back then still stands, and government bureaucrats were not getting rich off of the higher tax rates either (that was a response to the person I originally replied to, not you)
Including corporate taxes in the overall rate doesn't make a lot of sense to do. Corporate taxes are on a different entity and who really pays them depends on the nature of the business.
For example, there are a lot of businesses that are simply capital intensive. You need to make a large investment in order to operate. Nobody is going to invest in them unless the returns can beat alternative investments like bonds, but that will be the after tax returns in both cases. Bond interest and dividends are both taxed, but corporate income tax is an additional tax, so with higher corporate taxes every company in that industry would have to generate higher profits to attract investors. So higher corporate taxes drive mergers/dissolutions, the market consolidates to give incumbents more market power and the tax mostly ends up getting paid by customers or employees rather than investors.
Conversely, if the market is already consolidated, it might mostly get paid by investors. But it also acts as a force to keep the market consolidated for the same reasons, which is not super great.
The point being, you can't just assume corporate taxes are always paid by the rich or the owners of the company.
> Given that drop in the overall tax rate (along with rising income inequality and increasing debt spending), it seems clear to me that the income tax rate was not raised enough to compensate for that loss but that's a separate discussion.
Income inequality has very little to do with tax rates -- it's often measured on the basis of pre-tax income, and has increased significantly even using that metric, largely as a result of market consolidation and regulatory capture. Incumbents that capture government regulators and exclude competitors become megacorps and then their executives and owners extract disproportionate income. Taxes rates have little to do with it.
The increased deficit spending is because the government is spending more money. Federal receipts as a percent of GDP are around the same, federal spending as a percent of GDP has gone up.
> government bureaucrats were not getting rich off of the higher tax rates either
But there weren't higher tax rates -- and the real measure of what there is to get rich off of would be government receipts, if not expenditures. Receipts are flat as a percent of GDP, but up quite a lot in real dollars and real dollars per capita as a result of growth in population and real GDP per capita. Spending is up even on top of that because of deficit spending. So the time they'd be getting rich isn't back then, it's right now.
Which they are. Of course, "they" are Lockheed and healthcare companies and members of Congress, but there's little doubt that it's happening.
I was just pulling the numbers off of the source you gave. I'm not sure what methodology they used to compute those numbers.
> Income inequality has very little to do with tax rates
Sorry, I meant wealth inequality. I agree with you that the wealth/income inequality we're seeing is mostly driven by the actual incomes of the rich vastly outpacing the middle/lower classes - what I meant is that a higher progressive tax rate should be deployed in order to help correct that problem.
> The increased deficit spending is because the government is spending more money
Yes, I'm aware. Again what I meant is that if we're going to continue to spend at the levels we are, and wealth inequality continues to grow at the rate it has, then it makes sense to increase the tax rate on the highest brackets.
> But there weren't higher tax rates --
There were though - according to your source.
> So the time they'd be getting rich isn't back then, it's right now
No argument there - but again my point is that they aren't getting rich from increased government taxes, they are getting rich by lobbying/regulatory capture.
It's Piketty/Saez/Zucman. They did a lot of work to compile the data but they have a particular conclusion they're trying to support, so the data is probably accurate but they're organizing it in a way that supports their position.
> I agree with you that the wealth/income inequality we're seeing is mostly driven by the actual incomes of the rich vastly outpacing the middle/lower classes - what I meant is that a higher progressive tax rate should be deployed in order to help correct that problem.
I don't think that really fixes it because it isn't the underlying cause. The problem here is market consolidation, e.g. Facebook is too big. So Zuckerberg has "billions of dollars" but in fact the vast majority of that money is in shares of that one company and what he really has is control over an enormous and disproportionately powerful corporation. Which is a problem, but taxes don't solve it, because the corporation is still just as big even if nobody has a controlling interest. Wall St would still put someone in charge of it and that person would still have massively disproportionate influence.
Whereas if you do something about the market consolidation then individual corporations don't come to be that size and their owners/executives don't come to have that much influence or money. So higher tax rates neither solve the problem nor are necessary if you do solve it.
> Again what I meant is that if we're going to continue to spend at the levels we are, and wealth inequality continues to grow at the rate it has, then it makes sense to increase the tax rate on the highest brackets.
The current level of spending is pretty useless. Indeed, it's actually one of the causes of the problem -- a lot of the money is going to the megacorps. It's probably better to stop giving it to them to begin with.
> There were though - according to your source.
On corporations, not rich people.
> No argument there - but again my point is that they aren't getting rich from increased government taxes, they are getting rich by lobbying/regulatory capture.
The thing they're lobbying for is the tax dollars. Lockheed and healthcare companies are getting rich from tax money. And the same for Congress, though the mechanism there is less direct. They allocate tax dollars to corporations that then funnel a portion of it back to the legislators in various ways.
In your example, a stock went up 10x overnight. Mature stocks don’t do that, so you must be investing in something very risky.
What a tax would do is incentivize you to realize some of your gains to pay the tax. If you don’t want to do that and would rather keep gambling, then you’re free to do that. If the stock then crashes and you lose all your money that’s on you.
Obviously you have to think about implementation to make sure you’re not charging a tax that people can’t pay, but that can be figured out.
I come over and tell you, “this isn’t healthy! Nobody should weigh 10,000 pounds, we weren’t designed to exist that way!”
You come back to me and tell me that I’m making an emotional argument that isn’t backed up by facts.
But, the problem with that is that this is common sense, and it’s even backed by a bunch of science and observed reality. Someone who weighs 10,000 pounds basically can’t exist, and if they did it would be so ridiculous it’s almost incomprehensible.
I think it actually should be on you and not me to prove that people owning that much wealth is something that should be considered to be okay, not the other way around. You counter my “emotional pleading” with your own emotional “nuh uh, you are wrong” argument.
Who do you know that has over $100 million in net worth that you feel would be hurt by a proposal to tax unearned gains on people with $100 million net worth and above? I don’t know anyone like that. What I do know is that I would personally benefit from my government having more income to fix potholes and pay teacher salaries.
And that’s the other double standard: when the wealthy people advocate for policy that hurts the majority like tax cuts for the wealthy, they are seen as smart businessmen. But as soon as I advocate for something that hurts the wealthy, I’m being emotional and unreasonable.
Sorry dude, I’m just advocating for what’s in my best interest. It’s in my best interest as an average person who isn’t a billionaire or millionaire for these wealthy people to not exist. They’ve done nothing positive for me and everything negative. Every penny or nickel or dime that goes to their extravagant pay package is a penny or nickel that could have gone back to me, their customer. It would be better for me if my company CEO made $200,000 a year instead of $20,000,000 a year. That could at least buy us a solid pizza patty.
This is such a goofy argument. The US 2% of its budget on infrastructure. It spends 4% on education (yet literacy rates are only marginally higher than they were before compulsory education). Military spending is 20% of federal spending, and could be 1/4 of that without any risk whatsoever of invasion.
You don't need more tax revenues to pay for the stuff that makes business possible.
You need it to maintain your patronage system.
Has Tesla ever received a check from Medicare? Probably not. But the fact that Medicare exists means that Tesla's factory workers don't need to be paid at levels that reflect they need to 100% self-fund their retirement.
Has Salesforce ever asked for regulation or assistance from the FDA? Probably not. But because the FDA exists, Saleforce's employees don't have to spend time verifying their medication is authentic and does what it claims to do, so they can spend more focus on their work for Salesforce.
Even beyond government: how much do you think a Ford or Chevy have benefited from the US's culture? They certainly don't sell many large consumer trucks Europe or Asia. That profit exists because of the ideals and beliefs Americans have about how they should live their lives and what type of car they need to do that. Yes someone made the truck, and the truck maker should reap most of the benefits, but some of that profit should feed back into society that supported it.
Sure, we probably spend too much on the military and there exists some cronyism that we should strive to stamp out, but make no mistake that anyone with 100M in investable wealth has earned it with substantial help from the society we have all built together.
That must be why there were no successful companies in the United States before 1965.
> But the fact that Medicare exists means that Tesla's factory workers don't need to be paid at levels that reflect they need to 100% self-fund their retirement.
Tesla is paying them that much, because Tesla--and all employers and employees--are funding Medicare via earmarked taxes on income.
> There is a broader definition of "infrastructure."
"The most effective way of making people accept the validity of the values they are to serve is to persuade them that they are really the same as those they have already held, but which were not properly understood or recognized before. Adn the most efficient technique to this end is to use the old words but to change their meaning. Few traits of totalitarian regimes are at the same time so confusing to the superficial observer, and yet so characteristic of the whole intellectual climate as the complete perversion of language." ~Hayek
This is factually and objectively wrong, in multiple ways.
First, don't understand the difference between "an insult" and an ad-hominem attack. An ad-hominem is a logical fallacy where you attack the character of a person making an argument, rather than addressing the argument itself. Whether or not it is insulting is completely irrelevant - they're orthogonal axes, and the fact that you conflated them means that you don't know what they are.
Second, you did not state a fact, you expressed an opinion. You can't read my mind, you don't even know me in person, and even if you did, there's no objective test for “root cause syndrome”, which, as you said, is a term that you have invented yourself. (your statement "Likewise, the problem of wealth inequality can only be solved by reducing wealth inequality." is also an opinion that is not a fact) You don't even know the difference between an opinion and a fact. You should stop claiming that your opinions are facts, and learn the difference.
> Like the fact that wealth inequality is bad, and we know that it’s bad.
Provide a citation for the fact that wealth inequality is bad. If it's factual, it should be easy for you to provide a study that proves that it's bad by establishing a causal link between them, and doesn't merely express a correlation. (prediction: you won't, because I've never seen any evidence ever cited despite having read hundreds of comments expressing opinions like yours)
This is emotional pleading, dishonest framing, and a false dichotomy. Are you going to make a real argument, or continue to engage in emotional manipulation?
Of course there were. There were also lots of successful companies before we had highways or municipal plumbing. So I’m not sure what point you are trying to make here.
>Tesla is paying them that much, because Tesla--and all employers and employees--are funding Medicare via earmarked taxes on income.
Tesla benefits because every employer has been paying in. Anyone can freely go work in a Tesla factory because they know they will receive the same health benefits at the end of their working life if they go work there. They also benefit because their current employees don’t need to pay for the cost of their parents healthcare, which Tesla most likely did not pay for.
Regarding your quote. Was your intention to imply that I’m a totalitarian because I’m using a slightly different definition of a word than you? That seems a bit severe.
Let’s ask Wikipedia about infrastructure:
> One way to describe different types of infrastructure is to classify them as two distinct kinds: hard infrastructure and soft infrastructure.[4] Hard infrastructure is the physical networks necessary for the functioning of a modern industrial society or industry.[5] This includes roads, bridges, and railways. Soft infrastructure is all the institutions that maintain the economic, health, social, environmental, and cultural standards of a country.[5] This includes educational programs, official statistics, parks and recreational facilities, law enforcement agencies, and emergency services.
I don’t think it’s by any means a stretch to say Medicare or the FDA are institutions that maintain economic/health standards.
> You can't outlaw the exercise of power, so the extreme power imbalance itself is the core problem for humanity; and the only way to fix that is to take some of their power away.
This is not the only fix. It is possible to outlaw specific exercises of power that actually harm people, such as lobbying and bribery, without taking any money away at all, and it's possible to level the playing field in other areas such that money is much less of an advantage.
> For example, the ultra-rich can spend far more money on lawyers than anyone else.
By simplifying the legal system, and removing barriers to entry in the legal profession, such that people can effectively self-represent, both because they're legally allowed to, and because the legal system is simple enough that individuals can comprehend it and argue effectively. (this will also greatly reduce the effectiveness of high-powered lawyers, because the simpler the system is, the less advantage the best lawyers have over the worst ones)
The legal system is inherently flawed in that richer people have a massive advantage over poorer people - that is the problem, not that some people have more money and so can take advantage of it.
Please, seriously, think about that for a bit - our economy is filled with systems that are unfair or exploitative (e.g. legal, healthcare, non-compete agreements, the rent collusion that's currently happening), but the solution is not to start taxing the ultra-rich, because that still leaves those systems in an exploitative state, and they'll continue to take advantage of the middle and lower class even if you eliminate all of the rich people.
> E.g., the Bill Gates foundation has a lot of influence on global health spending
This is also very feasible to fix - make the status of being a tax-deductible charity contingent on not doing the bad things you want to disincentivize. This is similar to how Title IX is a huge lever over public institutions that prohibits them from doing some bad things.
No, I won't. This is a logical fallacy, that of the false allegory. It's not an argument in general, and in this particular case it's an extremely bad allegory that's also trivially inapplicable to this situation. There's plenty of scientific evidence that being physically overweight is directly unhealthy for you. Meanwhile, there's zero evidence that having a lot of money is the sole cause of any negative societal phenomenon. Think I'm wrong? Drop a link right here. Correlation isn't causal, by the way - if you show me a study that merely demonstrates correlation without causality (and sole causality, as opposed to multiple factors), then it's invalid.
> You come back to me and tell me that I’m making an emotional argument that isn’t backed up by facts.
In the case of your actual comments (as opposed to this irrelevant story you're spinning), this is true, because you are repeatedly making emotional non-arguments without providing any facts whatsoever: "very serious argument", "somewhat insulting", "abhorrent misappropriation", "societal mistake", "multiple THOUSANDS of $100 million dollars in net worth", "completely insane $100 million figure", etc. These are purely manipulative, emotional, non-arguments that are meritless and valueless, and are a symptom of someone actively trying to manipulate others. Repeatedly pointing out how much money someone has is not a valid argument.
You're inventing a completely fictional, irrelevant world because you're unwilling to or incapable of either providing a single rational argument, or a single piece of evidence.
> I think it actually should be on you and not me to prove that people owning that much wealth is something that should be considered to be okay
Over a hundred million people in the US, where I live, disagree with you. I have nothing to prove, because it's an extremely popular belief that it's ok to be rich.
Additionally, you have it exactly backwards: in almost every country in the world (and especially the US), things are assumed to be OK to do unless people explicitly decide otherwise. You can invent a new sport, make a new game, write a new book, and do whatever, and that's OK unless it violates established laws, or people decide that your specific thing is bad. This idea of "things are bad to do by default unless you prove otherwise" is completely hypocritical, because you have absolutely done novel things in your life that nobody else has done before, and felt not a shred of guilt, because you do not hold the internal belief that your actions are bad by default unless you explicitly justify them to others.
> You counter my “emotional pleading” with your own emotional “nuh uh, you are wrong” argument.
False. I've made extremely rational and detached counter-arguments to your fallacies. You are the one making objectively emotionally pleading statements like "very serious argument", "somewhat insulting", "abhorrent misappropriation", "societal mistake", "multiple THOUSANDS of $100 million dollars in net worth", "completely insane $100 million figure", and fallacies like the false allegory, the appeal to pity, and the red herring. I've pointed out your fallacies - you've continued to make more of them. You've shown that you don't even know the difference between arguments and emotional pleading.
> And that’s the other double standard: when the wealthy people advocate for policy that hurts the majority like tax cuts for the wealthy, they are seen as smart businessmen. But as soon as I advocate for something that hurts the wealthy, I’m being emotional and unreasonable.
This is a red herring. Nobody else brought up this double standard, nor did I mention it, nor is it relevant to this argument. It's just another way for you to emotionally manipulate.
> Sorry dude, I’m just advocating for what’s in my best interest
This can be used to justify every single kind of evil. Someone can make this argument to justify why they can murder, rape, steal, lie, and cheat, and it works exactly the same way, because they're just doing "what's in their best interest".
Your comments demonstrate an inability to differentiate between opinions and facts, and between emotions and logic. You should stop confidently conflating those things.
Companies are no more successful with Medicare than they were without Medicare, so simply claiming that it is "directly related to success" is meaningless.
> Tesla benefits because every employer has been paying in.
Your argument was that Tesla was paying lower wages, which was objectively false. Now you're really branching out! This first claim is just a low-effort handwave. They benefit because... the program exists? Compelling.
> Anyone can freely go work in a Tesla factory because they know they will receive the same health benefits at the end of their working life if they go work there.
People went to work before Medicare, and more freely, because they kept more of their income. So the only difference you're actually stating here is that "they know they will receive benefits", which, again, is tautological--the benefit of the program is that people know the program exists. Amazing.
> They also benefit because their current employees don’t need to pay for the cost of their parents' healthcare, which Tesla most likely did not pay for.
How is this a benefit to tesla? Vibes?
> Was your intention to imply that I'm a totalitarian because I'm using a slightly different definition of a word than you?
I was merely observing the age-old tendency of people who advocate for the never-ending growth of the state to manipulate language in service of their goals. It usually takes the form of conflating less popular things for which they're advocating (welfare, etc) with obviously necessary things (roads, bridges, the electric grid, etc) which already enjoy broad support. I don't doubt that you are sincere in your belief that this new definition is legit. (Who wouldn't happily use terms which make their policy preferences sound better?) Yet this is an obvious example of the old trick, which is always worth calling out for the benefit of the uninitiated.
https://www.pewresearch.org/social-trends/2020/01/09/trends-...
Here’s a Harvard philosopher who points out many of the same points I did regarding political power:
https://ideas.ted.com/the-4-biggest-reasons-why-inequality-i...
Here’s an article from the council on foreign relations that talks about how inequality is a drag on the economy and fuels populist authoritarian movements,:
https://www.cfr.org/backgrounder/us-inequality-debate
Here’s a Saint Louis Federal Reserve article which doesn’t necessarily prove that wealth inequality is bad, but helps to detail how wealth inequality has grown along the lines of education and generation (so you might need to explain how “the younger generation is more poor than previous generations at their age” is good for the economy): https://www.stlouisfed.org/open-vault/2019/august/wealth-ine...
Let me know when you’ll be dropping your links that say that wealth inequality is totally cool and awesome.
I think you need to stop debating people by attacking their logic and reasoning abilities just because they disagree with you. I mean, one of your points was that 100 million people agree with you that being rich is okay. Well, that’s an opinion that 100 million people hold, right? There are more than 100 million Christian’s and over 100 million Muslims, but they can’t both be right.
>> Correlation isn't causal, by the way - if you show me a study that merely demonstrates correlation without causality (and sole causality, as opposed to multiple factors), then it's invalid.
So, you still have provided exactly zero evidence for your claims.
> Let me know when you’ll be dropping your links from reputable institutions that say that wealth inequality is totally cool and awesome.
This is a strawman fallacy - I never claimed that wealth inequality was "totally cool and awesome". My point is that it's a correlation without a causation, and that wealth inequality is not the causing factor. It's still up to you to provide evidence for your claims.
> I think you need to get over yourself and stop debating people by attacking their logic and reasoning abilities just because they disagree with you.
You need to learn how to actually use logic and reasoning. Almost every single thing that you've said in this entire thread has been emotionally manipulative and fallacious. You're not merely "disagreeing" with me, you're making invalid points to justify something morally dubious - it's entirely reasonable for me to point out those fallacies and that emotional manipulation.
Also, literally the definition of a "debate" is to use logical arguments to argue for a point. You cannot have a "debate" with out logic.
It's also extremely ironic that your last statement is yet another emotional plea, because you can't justify your positions with logic or evidence.
I honestly suggest spending some time to think about why you're unable to justify your positions and beliefs with logic. Usually, that means that they're either purely driven by emotion, or logically inconsistent with each other - neither of which are good for either you, the people around you, or society as a whole.