The average billionaire in America pays 8% in federal taxes. Teachers and firefighters pay more than that. That’s why I proposed a minimum tax for billionaires. Republicans are against it, but I’m going to keep fighting for it. — Joe Biden (@JoeBiden) June 26, 2023 Reading Joe Biden’s Twitter is exquisitely painful, like a sore tooth that you can’t stop pushing on with your tongue. How do these things even go together? Americans are not taxed on their net worth, they’re taxed on their income. At least that’s what I think he’s talking about. Income tax. Although there are a lot of other federal taxes: self-employment tax, gift tax, excise taxes, etc. Is he talking about taxing people’s net worth? I don’t know. I can’t figure it out. I’m not a billionaire myself because I don’t know how to make that happen. If someone has figured out how to do… Read more →
EppsNet Archive: Taxes
Who Funds Democrats?
Red vs. Blue, us vs. them … it's the political prism of a simpleton. Who do you think funds Democrats? https://t.co/m6FJ0jorl9 — Paul Epps (@paulepps) January 18, 2023 Read more →
Wealth Tax
How do those two things even go together? What gives the government the right to use any individual citizen for the benefit of others? https://t.co/4WUNRlURzz — Paul Epps (@paulepps) January 16, 2023 Read more →
I Heard the News Today, Oh Boy
I’m getting a little tired of presidents of the United States repeating things that could only be spoken by an idiot or a liar, and then trying to intimidate people out of contradicting them. The latest (though of course not the most egregious) offender is one Joseph R. Biden, who told the country today that he can raise corporate income taxes without imposing any additional tax burden on anyone who earns less than $400,000 a year. Because in the United States of America, nobody with an income under $400,000 owns any stocks or mutual funds. And if you disagree, he’ll stare you in the face and repeat himself. — Steven Landsburg Joe Manchin has also taken up the banner on this. I don’t know enough about Manchin to say whether he’s economically illiterate or a liar or both. (I don’t think Biden is an idiot, though he’s obviously cognitively dysfunctional.)… Read more →
How Can You Do Good With Someone Else’s Money?
The essential notion of a capitalist society is voluntary cooperation and voluntary exchange. The essential notion of a socialist society is fundamentally force. If the government is the master, you ultimately have to order people what to do. Whenever you try to do good with somebody else’s money, you are committed to using force. How can you do good with somebody else’s money unless you first take it away from them? The only way you can take it away from them is by threat of force. You have a policeman, a tax collector who comes to take it away from them. Whenever you use force, the bad moral value of force triumphs over good intentions. — Milton Friedman Read more →
Psaki: “Unfair and Absurd”
White House Press Secretary Jen Psaki claimed during Monday’s press briefing that it would be “unfair and absurd” for companies to raise costs on consumers in response to the Biden administration raising the corporate tax rate: Jen Psaki: It’s “unfair and absurd” that companies would increase costs for consumers in response to us taxing them more. ? pic.twitter.com/rHilrYdj4j — Jason Rantz on KTTH Radio (@jasonrantz) September 28, 2021 You can depersonalize the theft by saying “Well, it’s corporate tax rates — greedy corporations, you know.” You don’t need to be an economist to understand that corporate taxes, like any taxes, have to be paid by people: either shareholders, or employees in the form of lower wages, or customers in the form of higher prices. The money has to come from somewhere. Read more →
Will $5 Billion Solve LA Homelessness?
Rep. Lieu seeks to fight homelessness with a $5 billion federal program — smdp.com Rep. Lieu is Ted Lieu, who represents California’s 33rd District, encompassing the coastal areas of Los Angeles from Palos Verdes through Malibu, including Santa Monica, where I currently live. Who’s going to pony up the $5 billion, Ted? You, or you’re going to stick it to the taxpayers? The bill would authorize $1 billion in grants annually for five years for local governments to spend on supportive housing models with comprehensive services and intensive case management. Are there examples of this kind of plan actually working somewhere? Because I can give you examples of plans that don’t work right here in your district. There isn’t a Republican elected official for 100 miles. The LA mayor is a Democrat, every member of the city council is a Democrat, any proposal they want to implement, there’s no one… Read more →
Thomas Jefferson: Why Are Democratic Cities Such Disaster Areas?
My fellow Americans – A lot of people ask me, “Tom, why are Democrat-run cities such shitholes?” I was reminded of this by President Biden’s upcoming “soak the rich” tax plan. In my view, there are three Democratic philosophies that destroy American cities. For example, did you know that Detroit in 1950 was the richest city in America? Now it’s a wasteland where half the residents can’t even read. The first philosophy is that Democrats hate rich people because “they don’t pay their fair share.” What is their “fair share”? What is your “fair share” of what someone else has worked for? I would suggest it’s nothing, but Democrats enact punitive tax rates on the most productive people, who then leave town and go somewhere else. The second philosophy is that Democrats hate business because corporate fat cats “don’t pay their fair share.” So they enact anti-business policies, the result… Read more →
Do You Know What They Call a Quarter-Pounder in Denmark?
It is utterly embarrassing that “pay people enough to live” is a stance that’s even up for debate. Override the parliamentarian and raise the wage. McD’s workers in Denmark are paid $22/hr + 6 wks paid vacation. $15/hr is a deep compromise – a big one, considering the phase in. — Alexandria Ocasio-Cortez (@AOC) March 3, 2021 Denmark doesn’t have a statutory minimum wage though. Per-capita income in the US is about the same as in Denmark, even though we are a multi-cultural nation of around 330 million people that naturalizes another 900,000 people every year, many from poor nations, and that Denmark is a homogeneous country of fewer than 6 million citizens that, in recent years, has effectively shut down its borders to poor immigrants. Also, in Denmark, everyone pays high taxes, not just the high earners. A Danish fast-food employee at $22/hr (about $45,000/yr) pays around half their… Read more →
Since this is an era when many people are concerned about ‘fairness’ and ‘social justice,’ what is your ‘fair share’ of what someone else has worked for?
— Thomas Sowell
Animal House Tax Policy
ALBANY, N.Y. (AP) — New York, New Jersey, Connecticut and Maryland sued the federal government over the Republican-led tax overhaul Tuesday, alleging the new law championed by President Donald Trump unfairly singles out high-tax blue states. — wsaz.com I thought this was noteworthy in that I can’t remember ever in my life hearing a Democrat say anything about people in high tax brackets other than they are not paying their “fair share.” If a Democrat has ever before said that people in high tax brackets are being singled out unfairly, I can’t remember it. The new federal tax law passed last year caps the deduction for state and local taxes at $10,000, meaning that residents of high-tax states like New York, New Jersey, Connecticut and Maryland — and California, where I currently live — will see big increases in their federal tax bill. It reminds me of a scene from… Read more →
A Tolerant and Diverse Society
“I Need to Pay Higher Taxes,” Says Bill Gates
If Bill Gates really believed that, he could decide how much he “should” pay, subtract what he’s required to pay, and send Uncle Sam a check for the difference. Which he doesn’t do. Gates was talking about taxes in the context of the recent tax bill not being progressive enough for his liking. “People who are wealthier tended to get dramatically more benefits than the middle class or those who are poor,” he said. Bill Gates is as smart as anyone I can think of, so I think his remarks are disingenuous rather than uninformed. People who are “wealthier” (“people with higher incomes” would be more accurate) benefit more from income tax cuts because they pay dramatically more in taxes to begin with (see chart). For example, the top 1 percent of earners pay almost as much into the federal income tax pool (38 percent) as the bottom 95 percent… Read more →
Soda Sticker Shock in Seattle
Seattle is trying to discourage its citizens from drinking sugary beverages by imposing a 1.75-cent per ounce tax on all sugary drinks sold in the Emerald City. A $15.99 case of Gatorade at the Seattle Costco now has an added tax of more than $10. A case of Coke is now $7.35 more expensive than the Diet Coke or Coke Zero. Sticker shock! What will people drink instead of sugary beverages? Coffee. Seattle drinks a lot of coffee. Is coffee good for you? What if you put sugar in it? Beer. At these prices, it’s cheaper than soda. Diet soda. Are artificial sweeteners better for you than sugar? Fruit juice. Not taxed but contains a lot of sugar. Should there be a tax on all-you-can-eat buffets? How about a tax credit for eating a vegetable? Or maybe — just maybe — the tax code was not designed for and shouldn’t… Read more →
Why Are Black Americans Against School Choice?
Most or all of the people booing Betsy DeVos know little or nothing about her except that they’re expected to dislike her for reasons that they may know are related to her views on public schools and school choice. But why are black Americans against school choice? I don’t want to overgeneralize — my son went to public schools and got a good education — but it’s all on the kids and their families to make it happen. Again, not to overgeneralize, but most public schools in black neighborhoods suck big time . Without school choice, public schools don’t have the right incentives. People running public schools aren’t paid by customers who voluntarily send their kids to those schools and who could choose to send their kids to another school if they wanted to. Public schools are paid for by taxing citizens who may or may not have kids in… Read more →
Carmack on Government
My core thesis is that the federal government delivers very poor value for the resources it consumes, and that society as a whole would be better off with a government that was less ambitious. This is not to say that it doesn’t provide many valuable and even critical services, but that the cost of having the government provide them is much higher than you would tolerate from a company or individual you chose to do business with. For almost every task, it is a poor tool. Given the inefficiency, why is the federal government called upon to do so many things? A large part is naked self interest, which is never going to go away — lots of people play the game to their best advantage, and even take pride in their ability to get more than they give. However, a lot is done in the name of misplaced idealism.… Read more →
Tony Robbins’ Wealth-Building Tips Seem Pretty Useless
Tony Robbins has 6 tips for Building Wealth Now. Let’s look at each of the tips and apply the “would anyone advise the opposite?” filter to assess the value of Robbins’ advice. Don’t lose money. I’m not kidding, that’s the first tip. Would anyone advise “Lose money”? No. So this “tip” is useless. Look for investments in which rewards far outweigh risks. Would anyone advise “Look for investments in which risks far outweigh rewards’? No. Robbins recommends using “the 5-to-1 rule,” in which the potential returns on an investment are 5 times greater than the potential losses. Why 5? Why not 10? Or 100? Where do you find these investments? I have no idea. Don’t overpay taxes. Would anyone advise “Overpay taxes”? No. Diversify. Would anyone advise “Don’t diversify”? Possibly. There’s a couple of schools of thought on diversification: 1) Don’t put all your eggs in one basket; and 2)… Read more →
There Are Four Ways You Can Spend Money
There are four ways in which you can spend money. You can spend your own money on yourself. When you do that, why then you really watch out what you’re doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well, then I’m not so careful about the content of the present, but I’m very careful about the cost. Then, I can spend somebody else’s money on myself. And if I spend somebody else’s money on myself, then I’m sure going to have a good lunch! Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get. And that’s government. And that’s close to 40%… Read more →
The Public School Monopoly Provides Little Incentive to Supply Good Education
[The public-school monopoly] is yet another scam that inflicts disproportionately great damage on people who are the poorest and least advantaged. How could it not? Those who run K-12 government schools aren’t paid by customers who voluntarily send their children to those schools and who could easily choose to send their children elsewhere. Instead, these teachers and officials are paid by governments that tax citizens regardless of how many children those citizens have in schools and regardless of how well the schools perform. Therefore, with funding that is independent of customer choice — and with each child assigned to a particular public school — public-school officials have little incentive to supply good education. — Donald Boudreaux Read more →
A Spectacularly Bad Job of Rigging the System
If you nevertheless believe that the capitalists have been busily rigging the system in their own interest, you’ve got to admit they’ve done a spectacularly bad job of it. How else to explain the quintuple taxation of capital income, where you can invest a dollar that was taxed the day you earned it, then pay corporate income taxes, dividend taxes, capital gains taxes and inheritance taxes on the income it throws off? Surely any concern that the rich are calling the policy shots should melt away in the face of actual policy. — Steven Landsburg Read more →