Youd have to give away 100% tho, if you gave away 70% you'd still owe 70% on the remaining 30%.
Also, remember this is income tax. Not capital gains tax. So that means 10 million in salary, not stock sales. About 12,000 people in the US make over 10 million that way, and about 1000 people make over 50 million. This conversation is about an infinitesimally small portion of the population. It's kind of a weird conversation to play out across the news media and campaign ads. "Liberals want to tax you" ads are actually one of those 12,000 people paying the television to shout "please vote not to tax me for your own enrichment" to the other 99.99% of the population. They dangle the carrot of an america dream, implying "One day when you are in the 10 million dollar club you wouldnt want this for yourself, treat me how you would want to be treated," full well knowing that 99.99% of the population will never be making 10 million.
> Youd have to give away 100% tho, if you gave away 70% you'd still owe 70% on the remaining 30%.
presuming you mean 100% of everything over 10m then yeah, that would be fine.
> Also, remember this is income tax. Not capital gains tax. So that means 10 million in salary, not stock sales.
That's the strange thing. I'd think progressive capital gains tax at a comparable rate would also be needed or directory compensation will be switched to stock instead.
> This conversation is about an infinitesimally small portion of the population. It's kind of a weird conversation to play out across the news media and campaign ads. "Liberals want to tax you" ads are actually one of those 12,000 people paying the television to shout "please vote not to tax me" to the other 99.99% of the population.
It's not just the wealthy that are against taxing the wealthy. I personally don't think it would make a lick of difference, and may even harm the economy in the long run, for the reasons I've outlined in the excessive number of comments I've left on this thread. If it worked I would support it, but I don't believe it would.
Depends. Everything is a double tax somewhere. Do you want to collect it as a corporate tax, a shareholder tax, an income tax, a sales tax etc. My warped viewpoint sees capital gains tax as very much a retaxing of corporate profit. If people own a company, and as a collective pay tax on their profit yearly/quarterly, they pay it again when they get rid of their shares? Imho, if you are going to raise capital gains, you need to lower the corporate tax rate.
> I'd think progressive capital gains tax at a comparable rate would also be needed or directory compensation will be switched to stock instead.
Well, lots of stuff is stock-based now because even at current tax rates dividends and long-term capital gains are favored, so the capital income vs. normal income problem is out there with or without a 70% bracket at $10M on normal income.
I would agree that LTCG should be taxed as normal income (though only on real—inflation adjusted—gains, and, with an option to recognize in advance and/or to defer much higher than prior-year income for a limited period to avoid middle class people with modest investments getting taxed like really rich people the year they happen to liquidate a major asset after holding for many years.)
But unless your salary is $1 (which the IRS frowns upon these days) while your long term capital gains and dividend will get the 15% rate; your non stock compensation will start at the 70%
It's fungible whether you account for capital gains or earned income for your first 0-15% where your capital gains/dividends alone exceeds the maximum tax bracket.
Also, remember this is income tax. Not capital gains tax. So that means 10 million in salary, not stock sales. About 12,000 people in the US make over 10 million that way, and about 1000 people make over 50 million. This conversation is about an infinitesimally small portion of the population. It's kind of a weird conversation to play out across the news media and campaign ads. "Liberals want to tax you" ads are actually one of those 12,000 people paying the television to shout "please vote not to tax me for your own enrichment" to the other 99.99% of the population. They dangle the carrot of an america dream, implying "One day when you are in the 10 million dollar club you wouldnt want this for yourself, treat me how you would want to be treated," full well knowing that 99.99% of the population will never be making 10 million.