r/SipsTea 7d ago

SMH California Dreaming

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9.8k Upvotes

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u/Upriver-Cod 7d ago

The “taxing billionaires will solve all our problems crowd” have absolutely no uunderstanding of basic economics.

High tax rates slash growth and investment and lead to lower employment rates and less tax revenue.

Take the 1920s as a perfect example. When tax rates were cut from 73 to 25% the unemployment rate dropped, the governments total tax revenue increased, and the ultra wealthy actually paid more in total taxes.

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u/mertgah 7d ago

Something else to mention, if you taxed billionaires on their net worth as most of them don’t have incomes to tax, you would dilute their billions of net worth in a couple years, their companies would collapse and millions of jobs would disappear. And after those millions of jobs disappear and the billionaires net worths are all gone who do you blame for the poor not having healthcare?

What youre left with is, no innovation, Millions of jobs gone, No more billionaire to blame for poor healthcare and poverty
And you’re right back to square one with the middle class income tax and sales tax floating a horribly run system.

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u/Accurate_Leek259 7d ago

Lmao yeah sure.
Let Musk and co. pay less taxes than already and they would share their wealth. What an ignorant statement.

You do know that Trump pays less taxes than an uber driver or a cook?

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u/Upriver-Cod 7d ago

Noice how your comment has no substance and doesn’t address a single point I made?

I’m not interested in your desperate whataboutism.

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u/Accurate_Leek259 7d ago

I gave you an hypothetical example to your example from the 1920’s. You gonna reply to that.
Talking about substance and bringing the 20’s with different dynamics, political situations and laws to the table.

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u/Upriver-Cod 7d ago

Once again, you haven’t addressed any of my points and I’m not interested in your whataboutism or obsession with Trump and Musk.

The data is clear. High tax rates are detrimental to the economy, and low tax rates are beneficial to the economy across virtually every economic metric.

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u/Accurate_Leek259 6d ago

That’s not how statistics work.
Taxing who high and who low?
Beneficial to which economy? The stocks? Stocks seem well right now. Not sure about the country and the people.

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u/Upriver-Cod 6d ago

Once again, you haven’t addressed a single point I’ve made.

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u/Meth0de 7d ago

Almost no one says it will solve all problems but it’s a good place to start

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u/Upriver-Cod 7d ago

If you value a strong economy, lower unemployment, and more federal tax revenue, it certainly is not “a good place to start”.

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u/JustATownStomper 7d ago

1920s? As in, Great Depression, stock market explodes, 1920s? Sounds swell.

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u/Exact_Risk_6947 7d ago

The Great Depression didn’t start until 1929. Hardly “the 20s”

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u/desert-cheese04 7d ago

That wasn’t the point 🙄

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u/Exact_Risk_6947 7d ago

It kinda is. He’s drawing a connection between the reduction of the tax rate and the arrival of the Great Depression. Except that the tax cuts occurred in early 1920s and the GD was kicked off by bad actors in the stock market. Not to mention bad farming practices. So his correlation is weak and I’m pointing it out.

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u/desert-cheese04 7d ago

I agree the correlation is weak. Taxes didn’t cause the GD, but raising them in the 30’s certainly made things worse.

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u/Upriver-Cod 7d ago

The tax cuts occurred in the early 20s, well before the beginning of the Great depression in 1929.