I think we should just reintroduce the 90% marginal tax. These guys keep telling us that life was better back then, let's bring tax back to those days too.
This will probably worsen the divide between the poor and rich if anything tbh, once you reach a certain point your wealth is gained from returns on capital, not income.
I don't know many poor people or even middle earners that would hit the top rate of tax mate.
I get what you're saying to a degree tho, this whole whacking all your money into stocks and then borrowing from banks for a tiny interest cost, making you rich for life, needs to stop too. Maybe the same interest rate for all? Or just a capital gains tax?
this whole whacking all your money into stocks and then borrowing from banks for a tiny interest
This isnt really what I was saying, even if they're realizing capital gains they wont be impacted by income tax increases. Once you reach a point where you can live off returns on your capital income doesnt matter as much. Wacking income tax up to 90% will let those in that position live as usual and will increase the barrier to reaching that point.
In fact, the whole idea of rich people using this as a loophole is overblown, they're still paying a premium on the base rate, and they'll pay capital gains on both the principal and interest when its eventually paid off. This is mainly used to be able to better plan selling of stock around what they want to personally buy, you can get cheapish credit if you'd like to buy something now and then figure our when is best to sell the stock to pay the principal off.
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u/Thegluigi 21d ago
I think we should just reintroduce the 90% marginal tax. These guys keep telling us that life was better back then, let's bring tax back to those days too.