Alexandria Ocasio-Cortez has a plan to pay for the Green New Deal: a 70% tax on the super-rich

Originally published at: https://boingboing.net/2019/01/04/president-ocasio-cortez.html

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Tasty…!

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This is a 70% tax on all income over 10 million for a year? yes? I don’t know how many arguments I have had with college educated people who literally don’t understand progressive tax structures.

I think part of the problem is headlines that put the plans in terms that are too simple.

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But, but…how will someone who makes $10-million a year survive after the cruel and heartless government leaves him with only $3-million?

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See also:

It will work as well.

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I’m sure the super rich will just give up and pay the tax without trying to avoid it by using all the very smart and expensive lawyers, lobbyists and tax accountants that their wealth can hire like they’ve done every single other time in US history when marginal tax rates became confiscatory.

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Exactly why we need to close loopholes and tax capital gains and not just “income.”

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I hope that they do, because people like Ocasio-Cortez will make closing loopholes their next task. You know how conservatives like to talk about taxes so simplified they can be done on a postcard? GOP, meet your petard.

Also, I look forward to seeing who’ll cry poor with these confiscatory taxes. It’ll be like signing up for a waiting list for the tumbrels.

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We did that with the bipartisan 1986 tax reforms that closed tax dodges and also lowered marginal tax rates, resulting in more revenue because people saw their tax burden as fair and avoided it less. Id be all for doing that again.

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Your figures ignore the point theodore604 made in the post right above yours: someone making $10M/year would NOT have a tax rate of 70% on ANY of their income. Someone making MORE than $10M/year would pay 70% only on that portion of their income ABOVE $10M.

(Yes, I know your post was sarcastic, but it perpetuates the simplistic [and incorrect] view of marginal tax rates.)

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I don’t give a shit about the rich and their fucking parasite lawyers. Alexandria is right and progressives need more of her attitude toward the rich. Get enough of the progressive legislators and get rid of the goddamn laws that allow the common man to be raped. The attitude of “oh we’ll never get change because the rich wont allow it” is bullshit. If we think we’re progressive then lets act progressive and support the elected progressives 100%. I like her courage and I support her efforts. Concessions to the republicans and chickenshit democrats are why we’re saddled with an idiot in chief. I also like Rashida Tlaib “impeach the motherfucker” Being nice and polite has lead us nowhere with these assholes. Lets fire up our base like #45 did for his knuckle draggers. The difference being our ideology is about lifting people up not crushing the downtrodden. We have the same fire in our guts but with decency in our hearts. Either we give them hell or we bend over and hope for Vaseline.

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Yes, it’s called a joke. Jokes, you see, sometimes simplify the complexity of a situation to get the main point across. I understand full well how marginal tax rates work.

If you’d like to use your mad CPA skillz to make the joke more accurate I’ll be glad to replace the numbers.

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I am all for taxing the rich, but doesn’t a jump to 70% seem a bit … extreme? Maybe more of an incremental bump to lessen the blowback?

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I was thinking you have to turn the heat up slowly, or the frog will jump out of the pan.

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The top tax bracket in the 50’s was 91%.

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No. At one point in the 60s we fucking LOWERED THE TOP TAX RATE TO THAT, it used to be 90%. What @gracchus said the people getting hit with that are still quite comfortable.

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I don’t know the details of her proposal, but under Eisenhower, I think it worked out that there was a 90% marginal rate above a certain amount, so that if you were in the top tax bracket, you ended up paying ~70% of your total income. Maybe she means that there should be a 70% marginal rate… I look forward to finding out.

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And getting back to the unfunny technical details, I’m sure it would be a marginal rate incorporated into the current progressive system, which has built-in buffers. Ocasio-Cortez isn’t that frivolous, despite her sinful dancing.

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What is at now, though. It isn’t that the rate is unprecedented, but what I am assuming is a sudden jump.

Re: Loopholes

It’s common knowledge that many if not all of the super-rich have squirreled away millions in hidden offshore bank accounts. Nobody’s going to have a hard fall. It’s going to feel as soft as marshmallows.

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