Saving Floridians billions of dollars through tax relief
We’re saving Floridians billions of dollars through tax relief. pic.twitter.com/Dqoj43D3Cx
— Ron DeSantis (@GovRonDeSantis) May 7, 2024
We’re saving Floridians billions of dollars through tax relief. pic.twitter.com/Dqoj43D3Cx
— Ron DeSantis (@GovRonDeSantis) May 7, 2024
The rich pay lower tax rates than the middle class because most of their income doesn't come from wages, unlike most workers. Instead, the bulk of billionaires' income stems from capital, such as investments like stocks and bonds, which enjoy a lower tax rate than income.
Rich people don’t, in general, pay less taxes, but various political movements have been so successful in propagating this meme that it is now often accepted without question. High earners often end up paying a lower percentage of their gross income in taxes, though the total amount is higher. This distinction is often glossed over by people who have no stake in reducing class-envy. Taxes are progressive for those who earn salary & wages. Income tax rates rise, so people who earn the majority of their money through work are taxed higher the more they earn. The truly rich do not earn their money through salaries and instead earn their money off of investments and ownership. There are multiple ways that this type of income can have substantially lower taxes than income tax rates. For instance, long term capital gains taxes is between 15% to 20%, which is roughly the tax rate for someone earning $100k/year. Not all countries tax capital gains separately from income, for instance Australia treats capital gains as normal income. This is a choice that the US has made that benefits people who own assets — which are primarily the wealthy. Additionally there are pass through corporations as well as various ways real estate companies can have lower tax rates. These are complicated situations which require significant legal and tax expertise to set up. But they can reduce the tax rate substantially. Finally, being rich is your total wealth, not how much you earn. There is no wealth tax in the US. If you simply have money and are not earning any money on it, then you owe no taxes. The US taxes investment income at a lower rate than wages to foster investment and creativity. The tax rates on salaries & wages is progressive whereby if you earn more on salaries & wages you pay more in taxes. There is no wealth tax in the US, meaning no tax on people's net worth, or just because they have accumulated money. The reason is they already paid taxes on that money when they accumulated it. A wealth tax would mean that money is taxed twice. The concept of a wealth tax is punitive and desired only by those who want to harm the successful and spend their money. The rich not paying their fair share is a false premise. The rich, define them anyway you want, pay more in total tax dollars than anyone, period. The top 40% of earners pay ~80% of the taxes. The top 20% of earners pay ~66% of taxes. The bottom 80% of earners pay ~33% of taxes. 80% of income earners pay less as a percentage of taxes than their share of earnings. The top 20% of earners pay more in taxes than their share of total earnings. If you think that is not a fair share, what do you want them to pay, 100%? That way the remaining 80% of the country pays nothing. Is that what you want? Maybe they should pay 110% of taxes and the extra 10% become a guaranteed income for the poor. That system already exists in our entitlement programs. When hearing politicians argue about the unfairness of our tax system, know they are leaving out quite a lot and lying to you for their political benefit, not for your or your neighbors' benefit. And what is worse, they know they are - - stretching the truth! Ask the question why do we need more money for government? We have paid more money every year for the past 50 years in education and US public education has gotten worse. Money is not the only answer to any problem, particularly when you spend it poorly. Which government does. Can we improve our tax system? For sure. But it needs to be done to improve the system, not just to get more money for the government.
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