Income Inequality and Tax Policy

[Sava]

The only time that discretionary federal spending has gone down in decades has been a result of the sequester in the Obama Admin. Something that had to be shoved down his throat.

So?

Oh, I forgot I'm talking to a simpleton who thinks anything the government does is bad... including existing.

[Dr Strangelove]

Simply remove the upper limit on the FICA tax. That will fix everything.

[PLATO]

The rich don't have nearly enough money to support the level at which spending has gone up over the course of this Administration.

Who said they did? A combination of spending cuts and additional revenue is what I said. Higher taxes on the uber wealthy is a part of that, but only a part.

[KrazyHorse]

Simply remove the upper limit on the FICA tax. That will fix everything.

Lulz. 12.4% tax increase on everything over 110k.My marginal all-in tax rate goes to 55%. And I seriously start thinking about taking a 0 stress 100k a year job...

[KrazyHorse]

The reality is that taxes on high earners (as Obama's defined them) can probably only make up around 15% of the long term fiscal gap. Sad news, but the current amount of transfers to the 99% is as big as it can get.

[Aeson]

Lulz. 12.4% tax increase on everything over 110k.My marginal all-in tax rate goes to 55%. And I seriously start thinking about taking a 0 stress 100k a year job...

... then someone slightly less competent than you will fill your job and you can spend more time on Apolyton. If you were saving lives that would be a bad thing, but since your job is essentially to increase wealth disparity as much as possible, I think I'm ok with that shuffling of the labor force. (not really in favor of tax increases though, just the effect in this particular case)

[MrFun]

The simple fact is that the government needs a combination of less spending and more revenue to get us out of the hole we are in (or at least to make it reasonable). The second simple fact is that the income disparity between the rich and the middle class is as high as it has been since right before the depression. The third simple fact is that the economy does do better when the income disparity is less.

Finally, for those that want to center on the fact that Gross "feels guilty" instead of the simple economic truth he espouses then you need to ask yourself the same question Sava asked you...

Time to cut defense spending, close tax loopholes, actively enforce all current tax laws, slash wasteful pork, and slash corporate welfare.

[regexcellent]

Time to cut defense spending, close tax loopholes, actively enforce all current tax laws, slash wasteful pork, and slash corporate welfare.

How do you feel then about removing the tax exemptions for home mortgages, college education, and health insurance? Or getting rid of subsidies to farmers and domestic manufacturing? Cutting green jobs programs?

Do you have any other dumb talking points you aren't willing to put substance behind that you'd like to share with us?

[Imran Siddiqui]

He didn't say close ALL tax loopholes .

Also, subsidies to farmers and domestic manufacturing totally should get cut (domestic manufacturing is fine, it just requires less labor because its more automated). And does anyone still back tax exemptions for home mortgages after the late 2000s?

[Guynemer]

How do you feel then about removing the tax exemptions for home mortgages, college education, and health insurance? Or getting rid of subsidies to farmers and domestic manufacturing? Cutting green jobs programs?

Mother****ing SOLD. Sign me up.

[Hauldren Collider]

Most of those subsidies are wealth transfers from the poor to the middle class and upper class, so yes, we should remove them.

[PLATO]

And does anyone still back tax exemptions for home mortgages after the late 2000s?

Uhhh...yes. Mortgage Banker's Association, Banks, Mortgage Lenders, etc...

And it is a tax deduction...not an exemption.

Now, more than ever, we need to encourage home buying. It is too important a part of the economy. Now, when the housing market recovers and we start to see it heat up again, then lets talk about removing that deduction.

[Dauphin]

Random thought, wouldn't labour mobility be improved if everybody just rented and everyone felt rich by having wealth tied up in a less volatile asset.

[Krill]

Random thought, wouldn't labour mobility be improved if everybody just rented and everyone felt rich by having wealth tied up in a less volatile asset.

But there is little safety if you can get turfed out of rented accomadation with 1 weeks notice.

[Imran Siddiqui]

Uhhh...yes. Mortgage Banker's Association, Banks, Mortgage Lenders, etc...

As in is anyone still a fan of them. I don't think we need to encourage home buying - and once housing recovery occurs, you aren't going to see the deduction removed.