Progressive Taxation Act (Failed)

[Franzl]

I voted for the 60% when I was in the Senate, something I'm not entirely comfortable with....but higher than that is completely absurd.

[Franzl]

And I guess you guys know that some decades ago the maximum taxation rate was over 90%.

Thank the Lord those days are over.

[Franzl]

Why should people even try to become wealthy if you're just going to take 75 cents of every dollar that they make?

To be fair, that's not quite what this does.

[Franzl]

Why should people even try to become wealthy if you're just going to take 75 cents of every dollar that they make?

To be fair, that's not quite what this does.

Well yes, I understand what a marginal tax rate is. But we are still disincentivizing success.

Oh I agree. But the very nature of progressive taxation at all disincentivizes success to a certain extent. It's just a matter of how far you're willing to go.

[Franzl]

I think something you're forgetting, Antonio, is that there isn't necessarily a corelation between tax rates and tax revenue, after a certain point.

I can't say at what level precisely it starts to have a negative fact...but we should all be aware that we're not talking about anything similar to a linear function here.

[Franzl]

Anyway, an estate tax is a bit of a silly tax. I'd probably remove it if I were in charge. And why do Americans love insanely complex tax systems? I guess employing tax lawyers is something you get off on?

Most likely because every senator/congressman wants a piece of the pie to buy his vote for certain things....and getting his own little pet project put into the tax code is what it takes.

Add up hundreds of that type of thing.....and that's where you get extremely complex tax systems.

[Franzl]

here it is illegal to disinherit people, oddly enough.

You mean it's impossible to determine where your money and estate will go after you die? Or at least strongly restricted?