Why taxing the rich doesn't work

[theblueprints]

Most people don’t understand how big the gap between rich and ultra wealthy actually is. I see many people parroting the same shit tax the rich. Tax people heavily after a certain income bracket if only it was that simple

If you are relying on an income paying yourself a salary or even running a business with pass through benefits from an S Corp or LLC you are simply not even in the same stratosphere as the ultra wealthy. Even if you somehow make $2M a year your financial reality is closer to soms shift manager at denny's than a billionaire

My dad is technically rich. Worked for over 25 years in finance, massive safety nets, a big house but financially he has infinitely more in common with me you and the everyday working class than he does with Elon Musk.

Because many niggas here don't understand that an income, a living wage. Regardless of how high or how much it is drop in the ocean. The system is designed to tax production and labor. Oh I make $300k a year. Yeah and that is nothing in the world of the wealthy.

View attachment 5184323

The ultra wealthy don't care about paycheck It lives entirely in asset appreciation and huge stock portfolios. They don't care about income, they borrow against their assets tax free. Assets don't create taxable events unless sold so they operate outside the tax code entirely

These are the real untouchable elite. You can tax income brackets at 90% and they wouldn't feel a thing, because they don't have an income. It's only the upper middle class that is hit. The real ones who cheat the system are asset hoarders. The Tax the rich narrative is easy to understand, follow through and rally people over for some cause but the reality is much more complex.

The truly wealthy have multiple hierarchies and systems in place to protect their wealth.

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Serious question, how do you type all this out and know this? Do you just know it off the top of your head or do you research then write?

 

[discord m0d]

in my opinion, i believe people should work for what they want. most homeless people are homeless because they dont want jobs or they're addicted to drugs. which is their fault. im not saying it isnt hard to get clean and get jobs. but if you want a better life you should work for it, getting handouts from the government which costs taxpayers more money is selfish.
same for illegal immagrants. violent people that do nothing but harm the country and eat up taxpayer money shouldnt be here.

na a lot of people are homeless due to capitalist exploitation , that's why you see people one paycheck away from being homeless.

and the "handouts" from the government is just a social safety net, so if you lose your job, get a disability or ect. you can go through life without dying. i do believe in government regulations to stop people from being bums and leaching off the government though.
@LXR

 

[Jason Voorhees]

Serious question, how do you type all this out and know this? Do you just know it off the top of your head or do you research then write?

I know this because I've seen, read and observed for years. It's also written about in many finance self help books. Its called buy borrow and die system. That book i posted in OP. Asset economy talks about it in depth.

 

[discord m0d]

I know this because I've seen, read and observed for years. It's also written about in many finance self help books. Its called buy borrow and die system. That book i posted in OP. Asset economy talks about it in depth.

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jason why didn't you tell me this

 

[LTG]

na a lot of people are homeless due to capitalist exploitation bro, thats why you see people one paycheck away from being homeless.

and the "handouts" from the government is just a social safety net, so if you lose your job, get a disability or ect. you can go through life without dying. i do believe in government regulations to stop people from being bums and leaching off the government though.

ive interviewed homeless people in my area for my economics class. 7 out of the 10 i interviewed said that they didnt want to do jobs or that they had gotten addicted to a drug (mostly meth) that had gotten them addicted to the point of selling everything to chase the high.
you're correct a lot are living paycheck to paycheck, but when most are by choice being bums, living off the government in low income section 8 housing just jacking off all day and breeding like rabbits, theres no saving all of them.

 

[discord m0d]

7 out of the 10 i interviewed said that they didnt want to do jobs or that they had gotten addicted to a drug (mostly meth) that had gotten them addicted to the point of selling everything to chase the high.

Their lowkey based, why would you wanna work under a shitty system were your constantly being exploited by some rich dude who doesn't do shit?

and drug abuse is a result of poverty, that's why you dont see meth heads tweaking in rich areas.

 

[huecomundoda2]

Well if you can’t adapt it’s literally over then. Surviving in the world and nature is literally constant adaption.

Even if you adapt there will always be a bigger fish.

With that being said, don’t forget to IMPROOOOOOVE.

 

[discord m0d]

jason why didn't you tell me this

jason update me about your life everyday on my profile

 

[LTG]

and drug abuse is a result of poverty, that's why you dont see meth heads tweaking in rich areas.

wallstreet

also saying "they rite, jobs are bad" isnt a good response. rich people that work for their wealth are good for employing people and paying them, if the world was truly ruled by the elites, nothing would stop them from not paying anyone, and circlejerking the wealth to eachother. we're getting close to that, but giving people the chance to become rich through working for them is generous IMO

 

[theblueprints]

I know this because I've seen, read and observed for years. It's also written about in many finance self help books. Its called buy borrow and die system. That book i posted in OP. Asset economy talks about it in depth.

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Even aside from this, how do you just have in-depth knowledge on a lot of different subjects? Like is it just experience and living? I remember you wrote an in depth thread about how to get the perfect suit

 

[1966Ford]

Millionaire vs Billionaire

Pro vs Hacker

 

[discord m0d]

wallstreet

also saying "they rite, jobs are bad" isnt a good response. rich people that work for their wealth are good for employing people and paying them

Is that why millions are getting sacced for being to expensive compared to ai?

but giving people the chance to become rich through working for them is generous IMO

Theres a higher chance of @acm turning straight then that happening

 

[Jason Voorhees]

Even aside from this, how do you just have in-depth knowledge on a lot of different subjects? Like is it just experience and living? I remember you wrote an in depth thread about how to get the perfect suit

If I get interested in something I usually go in depth and learn everything there is to learn about. I have a curious wandering mind.

I’ve been reading the newspaper daily for years and I consume a lot of long form podcasts For the finance stuff, it’s just years of reading and spotting patterns. If you want to learn about this finance stuff. I could recommend a few podcasts and books.

 

[Jason Voorhees]

Millionaire vs Billionaire

Pro vs Hacker

Indeed very good comparision.

 

[Chadeep]

I know this because I've seen, read and observed for years. It's also written about in many finance self help books. Its called buy borrow and die system. That book i posted in OP. Asset economy talks about it in depth.

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@Seth Walsh

 

[Jason Voorhees]

@Acquiescence

 

[discord m0d]

@Seth Walsh

i miss his 2000 ama threads

 

[theblueprints]

If I get interested in something I usually go in depth and learn everything there is to learn about. I have a curious wandering mind.

I’ve been reading the newspaper daily for years and I consume a lot of long form podcasts For the finance stuff, it’s just years of reading and spotting patterns. If you want to learn about this finance stuff. I could recommend a few podcasts and books.

I’ve heard before that one of the best ways to just get general knowledge on a lot of topics is just through reading the newspaper. Too bad nobody reads it anymore. I might start reading The NY Times on my phone though.

I would also appreciate some recommendations. What are some good ones?

 

[Chadeep]

Mamdani is taxing houses over 5 Million USD

 

[billions]

Most people don’t understand how big the gap between rich and ultra wealthy actually is. I see many people parroting the same shit tax the rich. Tax people heavily after a certain income bracket if only it was that simple

If you are relying on an income paying yourself a salary or even running a business with pass through benefits from an S Corp or LLC you are simply not even in the same stratosphere as the ultra wealthy. Even if you somehow make $2M a year your financial reality is closer to soms shift manager at denny's than a billionaire

My dad is technically rich. Worked for over 25 years in finance, massive safety nets, a big house but financially he has infinitely more in common with me you and the everyday working class than he does with Elon Musk.

Because many niggas here don't understand that an income, a living wage. Regardless of how high or how much it is drop in the ocean. The system is designed to tax production and labor. Oh I make $300k a year. Yeah and that is nothing in the world of the wealthy.

View attachment 5184323

The ultra wealthy don't care about paycheck It lives entirely in asset appreciation and huge stock portfolios. They don't care about income, they borrow against their assets tax free. Assets don't create taxable events unless sold so they operate outside the tax code entirely

These are the real untouchable elite. You can tax income brackets at 90% and they wouldn't feel a thing, because they don't have an income. It's only the upper middle class that is hit. The real ones who cheat the system are asset hoarders. The Tax the rich narrative is easy to understand, follow through and rally people over for some cause but the reality is much more complex.

The truly wealthy have multiple hierarchies and systems in place to protect their wealth.

View attachment 5184321

I mean this is true but this is just a consequence of late stage capitalism, retards who slave harder than cotton pickers to fly in the front seat of the plane are the ones you really have to feel bad for mentally.

 

[kisslessvirgin]

seize their property and distribute it and euthanize the troublesome people of society

 

[billions]

Norway & Spain. Levy a direct annual tax on net asset values not just what people earn on paper. There are multiple problems and loop holes that exist within it but it's still much better than taxing income

these societies are so small and have a clear societal motivation/image the larger and move diverse the country the harder it is to implement.

 

[discord m0d]

Exactly

Pretty funny that you mentioned communism, in paper it looks like the best option until you realize everyone is equal but the rich, even when they tried to apply communisim there where ppl with more priveleage than others

it could work if all labour gets automated

 

[_Nazareth_]

People who say tax the rich are just broke losers

Yup

 

[Mogger2000]

My dad is technically rich. Worked for over 25 years in finance, massive safety nets, a big house but financially

no wonder u type like an intellectual nigga u sound smart as hell that money must have been put into good use

 

[Jason Voorhees]

I’ve heard before that one of the best ways to just get general knowledge on a lot of topics is just through reading the newspaper. Too bad nobody reads it anymore. I might start reading The NY Times on my phone though.

I would also appreciate some recommendations. What are some good ones?

 

[theblueprints]

Preciate it king. Will listen when I’m scrubbing dishes at work

 

[Jason Voorhees]

@chang cypionate

 

[chang cypionate]

@chang cypionate

Will read how does this shit already have 2 pages jfl.

 

[Acquiescence]

The only value my life has is how many shares of Vanguard Total World Stock Index I have

 

[munnabhai]

i think stepped up basis should be removed even as a sorta conservative person

no reason for billionares to be able be able to avoid capital gains by passing the wealth on to their shit head kids

but i agree that "taxing the rich" is cope buzzwords

 

[Swarthy Knight]

Welcome back bhai.

And this seems to mostly check out, but Chat doesn't fully agree

Spoiler

Yeah, he's partly spitting, partly oversimplifying.


I'd break it down like this:

What he's right about​

1. The gap between "rich" and "ultra-rich" is enormous.


Someone earning $300k, $1M, or even $2M per year is usually still dependent on:

• a job
• a business they actively run
• professional income

A billionaire's wealth is mostly tied up in ownership of assets:

• stocks
• companies
• real estate
• private equity

For example, Elon Musk doesn't become rich because Tesla pays him a giant salary. Most of his net worth comes from owning shares that appreciate in value.


So yes, a doctor making $500k and a billionaire are living in completely different financial universes.

---

2. Wealth is often taxed differently than labor.


A lot of ultra-wealthy people:

• don't sell assets frequently
• borrow against assets
• use trusts and other legal structures
• defer capital gains taxes for years

This is a real phenomenon.


A billionaire with $10 billion in stock can borrow $100 million against that stock without selling it and without triggering capital gains tax.


That's one reason critics argue that wealth can compound faster than wages.

---

3. Income taxes mainly hit people who earn income.


If your wealth comes from:

• salary
• commissions
• self-employment income

you're generally exposed to ordinary income tax rates.


The person making $300k from a career often pays a larger percentage of their economic gains in taxes than someone whose wealth mostly comes from appreciating assets.


That's a legitimate criticism of many tax systems.

---

Where he's exaggerating​

"A guy making $2M is closer to a Denny's shift manager than a billionaire."


Financially?


Kinda.


Practically?


Not really.


A shift manager making $50k and a person making $2M differ by roughly 40x annual income.


A billionaire is roughly 500x richer than the $2M earner if we're talking about a $1 billion net worth.


So mathematically his point has some truth.


But in terms of lifestyle:

• private schools
• luxury travel
• expensive neighborhoods
• investment opportunities

the $2M earner usually has far more in common with wealthy people than with someone struggling to pay rent.

---

Where he's wrong​

"The ultra wealthy don't have income."


Most do have income.


It's just often a smaller portion of their total economic gains.


They may receive:

• dividends
• interest
• executive compensation
• stock grants
• partnership distributions

The bigger point is that wealth growth often exceeds income growth.


That's different from saying they have no income.

---

The biggest thing he's missing​

The phrase "tax the rich" doesn't necessarily mean "raise taxes on people making $300k."


Different people mean different things:

• higher top income tax rates
• capital gains reform
• wealth taxes
• estate taxes
• closing loopholes
• corporate tax changes

So he's arguing against one version of "tax the rich," not every version.

---

My overall score:


70-80% true.


The core idea—that a high-income professional and a billionaire are not playing the same financial game—is absolutely correct.


The parts about billionaires being completely outside the tax system and having "no income" are where the post starts drifting from reality into internet-finance rhetoric.

 

[discord m0d]

@Chadeep remember what i told you
you either rep me with or
i dont want to see thumbs up reacts from you

 

[grav]

Most people don’t understand how big the gap between rich and ultra wealthy actually is. I see many people parroting the same shit tax the rich. Tax people heavily after a certain income bracket if only it was that simple

If you are relying on an income paying yourself a salary or even running a business with pass through benefits from an S Corp or LLC you are simply not even in the same stratosphere as the ultra wealthy. Even if you somehow make $2M a year your financial reality is closer to soms shift manager at denny's than a billionaire

My dad is technically rich. Worked for over 25 years in finance, massive safety nets, a big house but financially he has infinitely more in common with me you and the everyday working class than he does with Elon Musk.

Because many niggas here don't understand that an income, a living wage. Regardless of how high or how much it is drop in the ocean. The system is designed to tax production and labor. Oh I make $300k a year. Yeah and that is nothing in the world of the wealthy.

View attachment 5184323

The ultra wealthy don't care about paycheck It lives entirely in asset appreciation and huge stock portfolios. They don't care about income, they borrow against their assets tax free. Assets don't create taxable events unless sold so they operate outside the tax code entirely

These are the real untouchable elite. You can tax income brackets at 90% and they wouldn't feel a thing, because they don't have an income. It's only the upper middle class that is hit. The real ones who cheat the system are asset hoarders. The Tax the rich narrative is easy to understand, follow through and rally people over for some cause but the reality is much more complex.

The truly wealthy have multiple hierarchies and systems in place to protect their wealth.

View attachment 5184321

It seems your thinking of the reason for taxing is to just take money out of someone's pockets, as if it was intended to be a punishment rather than collectively affording needs to help the community.

 

[discord m0d]

thank you @Chadeep

 

[discord m0d]

@Chadeep dont ever forget this