this post was submitted on 12 Nov 2024
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I want to expand on your expansion of my glib comment. While taxing the poor and working class at a higher proportional rate is obviously immoral, it's also bad economic policy. The working class are essentially the "engine" of the economy. Their income circles back into the greater economy at a much higher rate than a rich person's. The harder you tax them, more more you slow down the economy. While is technically true for any tax bracket, you can tax the rich much more aggressively with very little impact on the overall economy, because so much of their money is for toys.
We're actually seeing a big problem right now, with so many billionaires they are running out of decent places to put their money that's worth their time. We have way too many billionaires and not enough millionaires and small business owners. A billionaire will never invest in your taco truck, but the local "fairly rich" guy might. The billionaires are betting big on AI, in part, because they have no other bets they can make. We need to tax their asses way more aggressively and pump that money into micro businesses to make our economies robust.
(While I'm speaking about the US in particular, this is somewhat of a global trend.)