|
If the suggestion were in fact to double "all federal income taxes", what do you think tax rates would end up looking like? Right now the top "all taxes" federal marginal rate is 39.35%. (2.35% Medicare, and 37% individual income tax). Doubling that gets you to 78.7%. And state taxes also exist; in California the top rate would be > 90% overall. And of course doubling rates will not double revenue, because incentives really are a thing and a change this large would have large incentive-mediated effects, including people ending up with more compensation in non-taxable form (leisure, respect, non-taxable perqs, etc). The only way to double _revenue_ is for rates to rise even more, or more likely to start affecting more people (i.e. the top rate starting to apply at lower income levels). Now those are marginal, not average, rates. But just to be clear, right now US government (federal, state, local) spending is ~46% of GDP. Federal spending on its own is ~30% of GDP. If we are talking about doubling that second number, overall government spending would be 76% of GDP. Which generally means the _average_ tax burden across all people would be 76% of income (though some of that can get hidden via corporate income taxes and whatnot). There will absolutely have to be people with average tax burdens > 80% to suport that. That's assuming that we don't finance things by borrowing, of course; 1/3 of US government spending right now is not even coming from tax revenue. It might also be instructive to compare 76% government spending to the table at https://en.wikipedia.org/wiki/List_of_countries_by_governmen... to see how that measures up against other countries. |
Regardless, I don't know why I get pulled into debates with people who view taxes as theft instead of the price of a civilized society. Neither of us are ever going to change our world views based on the arguments of another.