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this post was submitted on 13 Oct 2023
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And that’s why a progressive tax system makes sense, unless you want wealth to become concentrated.
The US’s tax rate was once truly progressive, with top marginal rates well over 70%, even reaching over 90%. And guess what happened during that time. The middle class exploded and so did the economy overall.
Now the wealthiest pay a LOWER effective rate than most taxpayers. This is a regressive system, favoring the rich and creating more inequality. Allowing for increasing concentration of wealth and a devastation of the middle class.
Money making money does not have to result in the insane concentrations of wealth we see today. People can still get rich and be rich. But effective tax policy and regulations can be used to create a society that’s better for most.
There's a meta problem here: once you make enough money, it becomes increasingly profitable to pay people to find ways to avoid paying taxes via loopholes. Worse yet, you can pay people to rig the system in your favour. A lot of people think this is the inevitable outcome of capitalist systems.
Absolutely. Money and corruption often go hand in hand, regardless of the ruling system.
The US has previously been a great example of how socialist policies can be implemented as part of a capitalist system. World-leading programs like public education, retirement security, and healthcare in old age; even environmental protection and workers’ rights fit in here. This was when politicians actually had turnover and things like Citizens United and Super PACs weren’t a thing.
But the US is now a great example of how infection can spread and destroy even the best laid systems, leaving us with an oligarchy of nearly unfettered capitalism with constant degradation of the socialist policies. Where the money from the wealthy flows directly into our governance. And it’s utterly toxic.
It’s time to shift the power back to the masses. It’s already been done under this structure. It just needs a 21st century kick in the ass to get it up to (1) stop reversing all the incredible progress made in the 20th century and (2) get a handle 21st century issues like global tax evasion, housing markets upended by investment schemes, wealth distributed entirely through shareholder value, etc. These problems are all solvable under the current system, it just takes lawmakers who give a flying fuck.
What do you conclude about rulership, if its interests are separate from the interests of the disempowered?
Why do the wealthy leverage state power toward their particular interests, and what do you imagine would stop them from doing so?
Why was progress made during certain periods, and why was it later reversed during others?
Why are lawmakers indifferent to the struggles of the masses, and what would cause them to become more engaged?