People still don't understand net worth/wealth vs income

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It makes me cringe seeing people call AoC a hypocrite for her met gala dress

People at the met gala aren't the rich people anyone should be worried about. They have a large yet reasonable amount of money. More to the point, they often pay their taxes

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A member of congress in a 5 figure tax the rich" dress at a 5 figure per ticket event packed with millionaires isn't hypocrisy according to these smooth brains because these are "the good rich people"

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People at the met gala aren't the rich people anyone should be worried about. They have a large yet reasonable amount of money.

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Even ignoring the logical fallacies that net worth=income, I'll bet my bottom dollar than not a single person with an AGI under $400k paid $35k for a ticket to that snob fest.

These brain dead leftists:

1) Have never looked at a donor list for their political heroes.

2) Are quite ignorant of our tax code, deductions, credits and who is best positioned to take advantage of them.

3) Are quite ignorant of the economical effects that come with significant tax hikes "on the rich".

4) Talk about $30g as a "reasonable amount of money" to attend a fundraiser but think 400k a year is "the rich".

5) Are not paying attention to who has been laying off employees, struggling to stay in business and even closing their doors during the pandemic and have no clue how destructive these tax hikes would be on them.

6) Are ignoring the fact those billionaires were still getting fatter while black Jesus was in office for 8 years...raising taxes...making the rich pay "their fair share"...and watching the economy stagnate at the same time.

7) Support the same politics as Jeff Bezos, Mark Zuckerberg, Bill Gates, Warren Buffett, Carlos Slim, Sergey Brin, Michael Bloomberg and other billionaires around the world and don't see a hint of irony in their tired, naive, Robin Hood perspective.

Spending any amount of time on Twitter is depressing to see the sheer number of people, real or not, that think we would all be happier, more productive people if everyone earned the same amount. Why would any human do the "hard" or "complicated" things, if doing nothing or the bare minimum yielded the same results?

Not only do they not understand economics, they don't understand human behavior. At all.

People either don’t understand the meaning of “slippery slope” or don’t care.

After opening the door to taxing the rich, whether on their income or their wealth, the definition of “rich” can be changed at any time.

Hell, people don't realize that taxes on corporations are taxes on everyone.

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Hell, people don't realize that taxes on corporations are taxes on everyone.

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Economists are fairly split on this to be honest. It's not as clear cut as being made out because it's a tax on profits, not revenues.

Not every company has the same profit margins -> increasing corporation tax is a tax on profits -> not every company has the same room to maintain profit margins without losing market share. So not every company can remain as profitable by increasing prices to match the pre-corporation-tax profit margin. Certain goods are more elastic than others and that affects the level of room they have to adjust prices to maintain profit margins.

I think increasing corporation tax is nonsense though. It's one of the policies I don't particularly like as a Biden voter. Corporation taxes should be fairly low because it's a really bad tax - it's a really inefficient tax and doesn't raise the money it should.

Wealth does earn dividends though in many cases, which you could argue is a form of income. You can also borrow on portfolios through asset-backed financing, which acts as a form of income. I have an account with a private bank with a significant amount and they let me borrow money off my investments, which is theoretically income that isn't taxed.

Jeff Bezos can borrow a significant level of his wealth through asset-backed financing, which would be an income. It's a very clever way of getting money without needing to pay capital gains tax. If anyone has over $2-3M in stocks, I highly recommend you go to a private bank of a bulge bracket like JP Morgan and get asset-backed loans/financing. It's really convenient to make money without needing to sell stocks and interest rates are so low. Jeff Bezos uses asset-backed financing so his wealth does act as an income to an extent.

However, yeah, it's annoying when people don't get the difference between realized income and stock value. There are clever ways to avoid paying Capital Gains Tax though, which is the tax on wealth.

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More to the point, they often pay their taxes

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AOC owes a few thousand is taxes tho

She is talking about taxing Democrats. Have at it. The large majority of high net worth people are voting Democrat these days.