This isnt applicable everywhere. At school we were thought micro and macro in equal amounts. This is pre-university, so it doesn't get more foundational than that.
They hate literally any mainstream economist who doesn't believe non-capitalist systems can work.
You said it before Krugman? High marginal tax rates and higher % tax on capital gains won't really get you much revenue.
https://www.resetera.com/threads/pa...w-about-tax-policy-a-lot.91714/#post-16608307
Right, which is why we should do what she's suggesting along with going at the other ways the wealthy accumulate their money. Corporations need to be taxed more effectively as well.
This is actually why the SALT deductions getting killed hurt blue staters so much. Liberal states increased local tax rates after the federal ones were decreased, so effective tax rates are often much higher than the on paper federal one, but this was blunted by the SALT rules that made the feds pay them instead of the individual. Not anymore!
Our president? 😬
I thought it was an obvious wink to the audience that it was him, but maybe I'm reading too much into it.
Geez that sounds bad and I'm surprised any self respecting economics teacher would do that. Most economists like to stick to 'positive' statements (even though really actual policy making is a matter of values and opinion).
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Let's also say we both report $300,000 in income to the Internal Revenue Service this year. Who pays more in taxes?
You do, by a lot. You owe the IRS about $38,500 more, assuming each of us pays the maximum with no special deductions. I also have more flexibility to lower my burden with tax planning strategies and other tricks, and I get to skip about $24,000 in payroll taxes that you and your employer must fork over each year.
This isn't some quirk of the U.S. tax code. Politicians have intentionally set tax rates on wages much higher than those on long-term investment returns. The U.S. has a progressive tax system in the sense that well-paid workers sacrifice much more than poor workers on their "ordinary income." But Americans with so-called unearned income—qualified dividends and long-term capital gains—get a break. A billionaire investor can pay about the same marginal rate as a $40,000-a-year worker, a fact Warren Buffett has famously lamented.
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Americans in the top 1 percent, and especially the top 0.1 percent, have seen their wealth and income multiply in recent decades as the rest of the country's share of the economic pie shrank. Since 2000, a recent study found, the top 1 percent have made those gains almost entirely on income from capital, especially corporate stock—not on labor income. One reason may be the financial options of the wealthy: Business owners can lower their tax bills by paying themselves in dividends rather than in salary, for example.
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I've talked with several libertarian leaning folks in real life that had no idea how progressive taxation works.
