Re: the future long term financial apocalypse of the USA

On Sun, 26 May 2024, Scott Dorsey wrote:

In article <v2tmmb$324j6$1@dont-email.me>, Kevrob  <kjrobinson@mail.com> wrote:

On 5/25/2024 1:54 PM, D wrote:

>
The trickle down works over time. By zooming in to a specific country
over a few years you won't see it as clearly. Zoom out and check
economic development over let's say 50 years, and you'll see if globally.

>
Make the effective tax rate on the wealthiest too high and you encourage
capital flight.

>
Yes, and make it too low and you get hoarding.  It's more complicated than

Hoarding is impossible in todays economy, unless you literally take out all your assets in cash and keep them under your bed. Rich people have their assets invested in financial instrments, bank accounts, property etc. all of which generates more wealth (or else they would not return on the investment) and jobs (administration, investment managers, companies etc).
So you can actually never have too low taxes. What will happens is that business and prosperity increases when taxes decrease.

that too, because a flat across-the-board tax has problems, while having
a higher rate but with deductions targeted at the wealthy has a different
set of problems.  Designing deductions to encourage investment is a difficult
problem and people have written books about it.
>

It doesn't help a country much if that money is in a bank in a tax
haven. If you are an 800-lb gorilla like the USA, you just declare
all money an American earns anywhere taxable {with some exclusions.}

>
That looks good but doesn't really work because people with enough money
for lawyers find ways to hide it and people without enough money but
who live and work abroad can't afford to.  The American system is a severe
problem for middle-income American expats and doesn't seem to do much
to get billionaires to pay their taxes.
--scott

I agree with this statement. Draconical tax laws hurts the middle class the most. The ones below can live off the government and the ones above, as you say, parry with lawyers, corporations and by simply moving.