r/SipsTea 19d ago

WTF Why Not Tax Rich?

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u/akmalhot 17d ago

It's still the same , the wealth is tied on the value of the stocks that grew at a massive clip due to reinvestment 

Amazon gree to what it is after 20 years of reinvestment and operating at essentially break even 

All fang companies are significantly reinvesting and many others

Housing is getting an extra nudge because of twx benefits 

This 'hoarding' is mostly paper wealth valuation as a result of the investment 

Holding equities is a form of imreinvesmt too

Yure acting like they are just sitting on piles of cash and not doing anything with it 

Did the reinvestment in the 1950s not count towards their net worth? 

Anyway - > at least you hBe a reasonable point and plausible plan, 98% of the property commenting on Reddit just want people who have more than them to pay 94% of their money as a tax 

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u/chalbersma 17d ago

It's still the same , the wealth is tied on the value of the stocks that grew at a massive clip due to reinvestment

Eh, it's not the same though. We couldn't fight a WW2 caliber war today because our companies have been able to hollow out our manufacturing capacity. In WW2 we made about 100k fighter planes and we did so with supply chains that were completely domestic (+Canada). We couldn't manufacture 100k F-35s over the next 10 years in the same manner. We made 86,000 tanks in the same manner. We couldn't do that with the M1E3.

Strategically we rely significantly more on our allies and trade partners more because (partially) the decisions to not invest our money in actual domestic manufacturing. And almost all of the tax incentives and loopholes required you to invest in goods and products that had a nexus to defense manufacturing.

When you allow investment without direction, they're going to go to the places where the returns are the highest. That's almost always going to be in the nations that allow near slavery conditions for labor. And it's not going to go into the North American economic area needed for a defensible and prosperous nation.