01-05-2017, 10:17 PM
(01-05-2017, 01:44 PM)David Horn Wrote:(01-04-2017, 12:57 AM)Warren Dew Wrote: Taxing the income of the elites is virtually impossible, though. Buffett pays an effective tax rate of less than one tenth of one percent.
And why is that? They have minimal voting power in a nominal democracy. Why can't they be outvoted?
In the long run, the alternative may be the French or Russian one. They may wish to give voluntary compliance some thought.
Why? Billionaires can hire sufficient lobbyists, publicists, accountants, and lawyers to make sure loopholes are inserted into legislation, exploitable to exhaustion.
Crises tend to happen quickly. By the time the billionaires realize what's happening, it's likely to be too late to stop the wave.
(01-05-2017, 01:54 PM)David Horn Wrote:(01-04-2017, 11:05 AM)Warren Dew Wrote: It's the Democrats that protect Buffett and Soros, and the investment billionaires in general.
The Democrats had filibuster proof power for a while, and they certainly didn't do anything about that then.
This is both true and not. Special tax treatment for unearned income has a long and convoluted history. It was Eisenhower that first recommended it, but got stopped by the Democrats. It was Reagan that eliminated it, then changed his mind. Ultimately, blame GHWB and Clinton for lower rates on long term capital gains, and GWB for adding dividends and carried interest to the mix.
So, mostly a GOP policy.
It's not really the unearned income treatment that's the issue, though that's part of it. It's more special loopholes like charitable donation of appreciated assets, that allow you to shelter ordinary income while funneling money into a trust that you control, and the loose regulation of those "charitable" trusts. I grant that GHWBush was part of the problem, and the Republican establishment generally up until Boehner was metaphorically beheaded.