On 9/19/2021 1:44 PM, Frank Krygowski wrote:
> On 9/19/2021 12:27 PM, AMuzi wrote:
>> On 9/19/2021 11:03 AM, jbeattie wrote:
>>> On Sunday, September 19, 2021 at 8:07:08 AM UTC-7,
>>>
cycl...@gmail.com wrote:
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> <giant snip>
>>> Â Trade and barter is almost impossible for the
>>> government to trace, hence the excise taxes that
>>> supported the US for so long. These were perfectly fine
>>> with the common citizen because those paying the excise
>>> taxes were "the rich" as they saw them. Jay appears to
>>> think that large corporations would be the one's involved
>>> in trade and barter which is silly. For their own good,
>>> corporations and large companies must of needs keep
>>> careful and accurate records which are entirely open to
>>> the IRS.
>>>
>>> No I don't think corporations and large companies are
>>> involved in barter, although they are involved in trade
>>> and all sorts of non-cash exchanges.
>>>>
>>>> My grandfather was the chief engineer running the power
>>>> plant used in Salinas for what eventually became C & H
>>>> Sugar company. They grew and processed sugar cane into
>>>> sugar. It took a very long time for the IRS to grow to
>>>> the level a sophistication to be able to keep track of
>>>> the millions of small stores buying the sugar.
>>>> Therefore, the company paid taxes and few others did.
>>>> And once it left the retail store NO taxes were paid on
>>>> the trade and barter of it.
>>>
>>> WTF? Although the history of sugar taxation is complex:
>>> for over 100 years. The IRS keeps track of the millions
>>> of small stores buying the sugar by collecting income tax
>>> from those stores, and state regulators collect sales and
>>> income tax.
>>>
>>> If someone borrows a cup of sugar or trades a cup of
>>> sugar for a box of Cheerios, there is probably no taxable
>>> event, but I don't know what the law is in California.
>>> But yes, transactions between retail purchasers generally
>>> escapes taxation -- and so do cash sales. Most
>>> garage-sellers aren't collecting or paying sales tax, IMO.
>>>
>>>> The problem with today's tax system is plainly shown in
>>>> that dress worn by AOC - "Tax the Rich" as if they
>>>> didn't carry the brunt of taxation far above their
>>>> earnings.
>>>>
>>>> When you "tax the rich" you invariably hurt the working
>>>> man as jobs disappear. Trump wasn't saving himself any
>>>> money by reducing the highest rate - he was making jobs
>>>> for everyone and it showed.
>>>
>>> You tax everyone according to uniform rules, establishing
>>> marginal rates in some equitable way. Of course the
>>> rich are taxed. They always have been taxed.  The
>>> highest marginal rates in the 1950s were staggering, and
>>> yet manufacturing and employment were at an all-time
>>> peak. There is often a low correlation between tax
>>> policy and corporate spending on workers or capital
>>> expenditures as we learned with the Reagan and Trump
>>> trickle-down tax give-aways.
>>>
>>> -- Jay Beattie.
>>>
>>>
>>>
>>>
>>
>> Sugar duty changed into import quotas as a less visible
>> path to price supports for US producers. It's not always
>> about direct revenue; governance involves many goals,
>> policies, interests, hidden agendae etc.
>>
>> The 1960s marginal rates were draconian but... The average
>> rate paid by any given percentile of income is roughly
>> similar. I say roughly because the present actual revenue
>> is highly progressive, moreso than in the immediate
>> postwar era.
>>
>>
https://www.treasury.gov/press-center/press-releases/Pages/js1287.aspx
>>
>>
>> (first in a web search. I'm sure there's something more
>> current but the trend on that chart is clear enough)
>>
>> How can that be? The devil's in the all too voluminous
>> details. Economists have made at least some headway toward
>> broader flatter rates with fewer carve-outs, exceptions,
>> exemptions, incentives and such. This gives a more
>> efficient system and generally higher compliance, as
>> history shows. Tip of the hat to Art Laffer.
>
> I don't see a flatter tax scheme as better. On a drive we
> make weekly, I pass by a brand new mansion. I'm guessing
> ~10,000 square feet on ~5 acres, surrounded by brand new
> stone fences about six feet high. The carriage house or
> servants' quarters or whatever is larger than our house.
>
> We also drive by plenty of scrappy little houses even more
> tiny than ours. It's hard to convince me that the owners of
> each should pay the same percentage of their income in taxes.
>
>
Envy aside, the _actual_ revenue effect has been that fewer
high earning taxpayers are responsible for ever greater
proportions of Treasury revenue. The net payments have
become extremely progressive, moreso than for example
European countries.
Key to this I think is that humans are actors, not widgets.
With literally ridiculous top marginal rates (95% for a very
long while) no one actually pays that rate. As a practical
matter, deductions, averaging, credits and exemptions abound
such that the actual revenues collected were lower among
high earners than now. You could look it up! It's like
arithmetic, not even higher level mathematics.
USA may be unique in the disproportionate Federal taxes paid
by 'the rich', but is only one of many entities to discover
the effect.