Government Coup

[Alan]

Fair share IMO is the same percentage of taxes for all.

So, how much would you like to increase taxes on those low income citizens who currently pay little or none in order to stick it to the rich? The average percentage paid by the bottom 50% of earners is currently 3.7%

[iris lilies]

Theoretically, I like the flat tax, but haven’t we seen the data that determines that doesn’t bring in enough revenue for the United States?

I like the idea that everyone pays the same percentage. How that works in real life is unclear to me.

[Tybee]

Theoretically, I like the flat tax, but haven’t we seen the data that determines that doesn’t bring in enough revenue for the United States?

I like the idea that everyone pays the same percentage. How that works in real life is unclear to me.

I like that too, that was what Steve Forbes was pushing, remember? Made sense to me then and now.

[catherine]

I am not sure about the flat tax. As IL says, I'd have to see what it means in real life. But I still go Biblical on this one "To whom much is given, much is expected," and I really don't think that a flat tax would be fair, or pay the bills. Not fair because if you have someone with an annual income of $100,000 at 10% they pay 10,000. That would impact their daily choices. If you have someone making 1,000,000, that's $100,000 in tax. I do not believe that they would have as much of a challenge achieving prosperity with $900,000 as someone making $90,000. And then what about the multi-millionaires and billionaires... I have to believe that some form of progressive tax is the most fair way.

In my post above where I deleted stuff, what I deleted was an analogy between a family and a country. I prefer to think of the country as a famly unit. If you have a couple of family members who are living large and having a great time but other members under the same roof are suffering, that doesn't bode well for the family in general. That is how I feel about the cuts to Medicaid. I feel that we are going to have a lot of family members dying and suffering and the other members of the family are turning a blind eye.

Paul Krugman has a great piece on Substack today. He is also calling the "Big Beautiful Bill" cruel and sure to cause death. But, as an economist, he has some suggestions for where to cut the waste other than cutting money going to the states for healthcare:

1. Recoup unpaid taxes, which will require restoring some IRS jobs. There is 600B out there in unpaid taxes. A good chunk of that from the wealthy (remember Leona Helmsley's famous quote?)
2. Crack down on Medicare Advantage overpayments. Insurers are gaming the system and costing the taxpayers between $1.3-2 trillion dollars.
3. Go after corporate tax avoidance. That would bring in $70B.
4. Eliminate Trump's 2017 tax cut. It didn't do the economy any good. All it did was line pockets. It didn't serve any real economic need.

So I'll try not to sink into despair for the all the people who are likely going to take one for Team Red with their health and their lives. But I'm not optimistic, and I'll put a thousand $Melanias on that bet.

[LDAHL]

My country isn’t my family and the government isn’t my daddy.

[catherine]

My country isn’t my family and the government isn’t my daddy.

I never said the government is your daddy. I said "family member" on purpose. The country is made up of people who have bonded together for the purpose of supporting each other's life, liberty and pursuit of happiness. I take that as a personal responsibility to vote in representatives who will do what they can to facilitate that mission on behalf of all.

[early morning]

“Government is instituted for the common good; for the protection, safety, prosperity and happiness of the people; and not for the profit, honor, or private interest of any one man, family, or class of men.”
― John Adams

[Tybee]

I am not sure about the flat tax. As IL says, I'd have to see what it means in real life. But I still go Biblical on this one "To whom much is given, much is expected," and I really don't think that a flat tax would be fair, or pay the bills. Not fair because if you have someone with an annual income of $100,000 at 10% they pay 10,000. That would impact their daily choices. If you have someone making 1,000,000, that's $100,000 in tax. I do not believe that they would have as much of a challenge achieving prosperity with $900,000 as someone making $90,000. And then what about the multi-millionaires and billionaires... I have to believe that some form of progressive tax is the most fair way.

That also makes a lot of sense. Maybe pay not tax, like now, under a certain point, and then a flat tax? Just throwing out ideas, but what you say does make a lot of sense.

[iris lilies]

That also makes a lot of sense. Maybe pay not tax, like now, under a certain point, and then a flat tax? Just throwing out ideas, but what you say does make a lot of sense.

Then, it isn’t a flat tax system entirely, is it?

I like to see everyone with skin in the game. A truly “we are in this together” experience.

Those who pay taxes and those who don’t sets up a “them and us” dynamic.

[catherine]

I like to see everyone with skin in the game. A truly “we are in this together” experience.

Those who pay taxes and those who don’t sets up a “them and us” dynamic.

I agree with that. I think the only people who don't pay taxes are those below a certain level of poverty, and those who simply hide income from the government, who can be anywhere on the wealth spectrum, although it's definitely harder to hide income if you get a W-2, which is 61% of the US workforce. (McKinsey)