@JimB said:
@judaspete said:
I personally want to see Elizabeth Warren be president, but think she comes off as too much of an intellectual for much of the country. Bernie has a better shot at winning.
@Dark_sageX said:
You want america to turn to Venezuela? because thats exactly what will happen if you allow anyone on the far left to take control of the office.
Venezuela? Okay. I want to see America become a little more like Denmark, Norway, Germany, England or really any other first world country. We already have socialized military, police, fire, water, and infrastructure, and I want to add health insurance to that list like the rest of the first world. Profit motive just doesn't quite line up with public interest in these areas.
You should compare the tax rate of the United States against the countries you mentioned. Our personal tax rate is 37% 0 Federal sales tax =37%. Norway Personal tax 38% Federal sales tax 25% = 63%, Germany Personal tax 47% federal sales tax 19 %=66% Denmark Personal tax 55.8% Federal sales tax 25% =80%. England's tax rate is very high it is to complicated to easily show. Yet with all these taxes you wnt the United States to be more like them.
Okay, first off, saying personal tax rate is a gross oversimplification. The way it works is that income below a certain threshold will be taxed at a certain rate, and income above that threshold at a higher rate, and income above that at a higher rate, and so on. So someone declaring a million dollars worth of income would pay 10% on the first $9,000, 15% on the income between that and $37,950, 25% on the income between that and $91,900, 33% on the income between that and $416,700, 35% on the income between that and $418,400, and 39.6% on anything above that. I'm assuming that your 37% figure refers to that last number, the rate on the top income, but that's not what someone earning a million dollars would pay. When you calculate it out, someone who made exactly one million dollars would pay 35% of their total income towards taxes. People earning less than that would pay less, going down each bracket.
Second, combining income and consumption taxes is patently ridiculous. Consumption taxes, by definition, are a portion of the money you spend on consumer goods, so if you spend zero dollars your consumption tax is zero dollars. The way you frame it makes it look like everyone pays the consumption tax on their entire income, which is a huge exaggeration. Furthermore, people in different income levels spend their money on different things. Poorer people tend to spend a disproportionate amount of their income on things that are covered by consumption taxes, whereas richer people tend to spend money on things that are not such as savings, stock investments, college tuition, charitable giving (often to avoid paying taxes), and political spending. Therefore, percentage of your income that you pay towards a consumption tax will depend on what you bought. For poorer individuals, that number could be quite close to the actual consumption tax rate, while for wealthier individuals it is usually quite lower.
Third, if our "combined" tax rate is practically half of every country you mentioned, then why were conservatives whining that our tax rate was higher than every other developed nation? Could it be because they were selectively omitting consumption taxes and only focusing on income tax in order to create a false comparison and drive down income taxes on the very wealthy? The fact is that we made up for the higher top rate by not having a national consumption tax, which is extremely healthy for a consumer-driven economy and for income inequality in general. If I had to pick another country's scheme to go with, I'd choose Germany or Denmark as they combine a relatively high top income tax with a relatively low consumption tax. However, I think the best system is a high top tax rate with fairly calculated gradations. We succeeded with that system here in the U.S. in the past generation and we can do it again.
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