We're just talking about why rich people's gains don't lead to inflation as much as poor and middleArchived Message
Posted by doubledown on October 6, 2023, 12:23:37, in reply to "Some thoughts"
class.
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First, I actually do support direct cash payments to the poor, particularly for those with kids. The child tax credit checks were great and should continue.
However, I do think you are underestimating what the wealth of the 1% or .1% does. Tons of if flows into investment funds and vehicles that invest in startups, Series A, B, C level companies, and real estate plays to build massive residential/commercial/industrial buildings. There are many reasons why the US has the best entrepreneur/start up cultures in the world, one of those is easy access to funds.
Now do the rich people making those investments usually make a shit ton of money? Yes, yes they do. And when it comes to tax rates on capital gains, I actually support higher rates for PE/VC funds whose income is derived through capital gains. Something closer to current federal level income tax rates would work for me.
My final issue is that I just inherently don't trust the government to be a great "transferrer" of wealth. Do I generally think the top .1% should be taxed a little more? Yes, but then you lose me when it comes to the efficiency of transferring those funds.
A real world example of this would be here in Illinois. JB wants to raise the state income tax on the top 5% or whatever, if he coupled that with promises to also reduce spending and costs, I'd be in. But instead it's "give me this money now, I know what to do with it."