A quick history lesson. From 1940-1980:
•Wealthiest paid 70-94% marginal tax
•0 of them went broke from taxation
•0 of them left USA
•All remained exceedingly wealthy
•Manufacturing boomed
•The middle class was 62% of US economy (It's now 40% post 'trickle down scamenomics)
•We had the strongest middle class growth in US History

Let's do that again. Stop protecting billionaires. Start taxing them.
#TaxBillionaires

@QasimRashid I mean, It was abusive and unfair, which is enough reason for me to give it a hard no... **no one** should be taked out of 94% of their income, regardless if they can survive it.

That said, I can pretty much garuntee the whole "0 of them left" and "0 of them went broke" is pure nonsense, you have a source for that?

@freemo that’s not how progressive tax systems (including the now-watered-down one in the US) works. No one paid 94% of their entire income in tax, pre-Reagan - that would have been a flat tax system (which the US has never had to my knowledge), and as you so rightly point out is grotesquely unfair (especially to lower income workers) @QasimRashid

@pmonks

Yes I am well aware how income tax works. But yes as you get father above the 200K bracket the closeryoull get to 94%. So yes you have tax rates abusively high for the rich that can approach 94%, if your rich enough you are effecitvely paying 94%.

@QasimRashid

@freemo again, that’s not how progressive tax systems work. Khan Academy has a good explainer that might help explain where you’re going wrong: khanacademy.org/economics-fina @QasimRashid

@pmonks @QasimRashid

Please feel free to explain specifically where you think i went wrong. I deal with these sorts of taxes daily as the EVP of a company.

@freemo @pmonks @QasimRashid
Now Dr. Explain to us how tax credits and tax write offs work to lessen the tax burden for the wealthy. Not to even mention the tax deferrals offered in 401ks and IRAs. So the real question is not what is the tax bracket you're in but what is the effective tax rate you actually pay. That's why Buffet says his secretary pays more in tax than he does.

@MikeBon @pmonks @QasimRashid

Yes they legally use the writeoffs and other benefits availible to everyone. If there is a specific writeoff you feel is unjust or only applies to the wealthh im open to discuss

@freemo most of these write offs are only obtainable if you’re wealthy though, so no they’re not “available to everyone” in any meaningful way @MikeBon

@freemo for example one can’t claim charitable donation deductions if one is living paycheck-to-paycheck and deciding whether to pay rent or utilities this month - there’s no disposable income available to be making such donations @MikeBon

@pmonks @MikeBon

That is a bit irrelevant since they are spending far more on charities then they save on a deduction.

@freemo not at all. If a wealthy person doesn’t pursue legal loopholes to the tax code (such as charitable dedications), then they would have paid more in taxes. The “charitable” donation has very little to do with philanthropy and everything to do with retaining more personal wealth. @MikeBon

@pmonks @MikeBon

How isnpaying 100k in donations to save 20k in taxes a loophole or even an exploit?

@freemo charitable donations (at least in the US) work by reducing income, which means it can shift someone into a lower tax bracket. That can save substantially more than the amount of the donation. @MikeBon

@freemo regardless, you’re dodging the original point: that these kinds of deductions are not equally available to everyone @MikeBon

@pmonks

No one has presented an example where thry are exclusively or favorable towards the super rich. Everyone has access to them.. if you think there is one only the rich can use im still waiting to hear what one you mean

@MikeBon

@pmonks @MikeBon

No this example was invslidated because the super rich, as we are discussing dont hover tax brackets by definition. And it isnt saving you money overall except in that edge case.

@pmonks @MikeBon

Dont be a passive aggressive ass. If you feel i misinterprited the discussion feel free to speak up. Otherwise lets not go there

@freemo you didn’t read the post I linked, assumed it was a different one, and then addressed the wrong point in. If you wish to police how this discussion is conducted then I encourage you to engage with it in good faith and actually read waa is written than jumping to (wrong) conclusions. @MikeBon

@pmonks @MikeBon

Read it a fourth time now.. nope it says exactly what i thought it said...

@freemo perhaps your client isn’t functioning correctly, so I’ll literally reproduce the text again here:

“for example one can’t claim charitable donation deductions if one is living paycheck-to-paycheck and deciding whether to pay rent or utilities this month - there’s no disposable income available to be making such donations”

This comment isn’t about the wealthy, it’s about the poor. You still haven’t address that point (which was also one of the first one raised in this thread i.e. that these kinds of legal tax loopholes are _not_ available to all).

@MikeBon

@pmonks @MikeBon

So it says exactly what i thought it says.. as isaid before its not a tax advantage for the rich or anyone since you spend more in giving donations than you get in tax cuts. So neither the rich the poor nor anyone can exploit it to save on taxes, it isnt a net savings.

@freemo you’re still missing the point: how can someone living paycheck-to-paycheck make a charitable donation in order to access this tax deduction, without neglecting their other financial obligations? @MikeBon

@pmonks @MikeBon

They cant, nor can the rich because it isnt a tax advantage.. spending 100k on charity to save 10k on taxes isnt an advantage to the rich either nor is it a means to save money.

@freemo so you’re retracting your earlier assertions, made here: qoto.org/@freemo/1102825852234 and here: qoto.org/@freemo/1102825852234 where you claim that everyone has access to these kinds of tax loopholes? @MikeBon

@pmonks @MikeBon

Nope.. both those statements still hold true. I was asking for an example where the rich could leverage loopholes to get out of taxes the poor cant. Since you dont save money by making charitable donations this does not satisfy the premise.

@freemo how does someone living paycheck-to-paycheck afford to make a charitable donation while still meeting their other financial obligations? @MikeBon

@pmonks @MikeBon

They dont, and you really arent listening.. how does a rich person use the loophole to save money? If they make 200 million and spend 10 million on charity in orser to save 1 million in taxes all they did was cost themselves 9 million. So it is not a loophole for the rich or the poor, it isnt a loophole for anyone...

@freemo we’ll get to your unrelated claim about the wealthy not benefiting from tax deductions soon. I’m still more interested in your earlier claim that the poor have equal access to these deductions. Am I right in thinking that in your latest reply you are indeed retracting that claim? @MikeBon

@pmonks @MikeBon

I didnt say thry dont benefit from tax deductions.. if you cant e en listen to the basic things people say enough to repeat what they said accurately how do you expect people to keep interacting with you?

I am not retracting the claim. The poor have equal access to charitable deductions. They engage in fewer of thrm so would use them less, but since its not a loophole or something a person can exploit to save money it isnt relevant to my claim.

@freemo I didn’t say you did. What you *did* say (here: qoto.org/@freemo/1102825115678 and here: qoto.org/@freemo/1102825852234), and which I’m disputing, is that everyone has *ACCESS* to these deductions.

Do you still stand behind that claim?

@MikeBon

@pmonks @MikeBon

Yes everyone has ACCESS to the charitable giving deductions. And anyone who donates to charity is likely to leverage it, and should. But it isnt a money saver and since those two messages were in thr context of loopholes it is irrelevant either way.

@freemo how does someone living paycheck-to-paycheck access this deduction? @MikeBon

Follow

@pmonks @MikeBon

The same way the rich do. There is a little form on your taxes hou write it in.

@pmonks @MikeBon

There is nothing to detail, you literall just put the total in the little space on your taxes then attach the receipts and itemized list of donations as a form 8283 which you only have to do for amounts over 500 if its under that you dont need to show proof but can still claim it.

@freemo start from then receiving their paycheck. Let’s assume they have no disposable income. @MikeBon

@pmonks @MikeBon

If they hav no disposable income and are so poor they can only afford enough food and shelter to live then they dont pay taxes as thry are below the threshold. Therefore they already have 0 taxes and there is nothing to grt cuts on.

@freemo that is incorrect. In the US, for 2022, the filing threshold is $12,950 while the poverty line is between $14,580 and ~$40,000, depending on state.

But I notice that you’re dodging the question you were asked again, which is not approaching this discussion in good faith. @MikeBon

@pmonks @MikeBon

You passed good faith a while ago, as im sure you see why your argument is nonsense...

If you have not donated to anyone then you wont be writing off somethibg you never did. So they have access to the writeoff they just wont use it.. but since using it costs you more than it saves it is moot as has been pointed oit many tines since it isnt an advantage in the first place.

@freemo as have you, by repeatedly dodging the questions you were asked. And since you’re not willing to do that, but instead deflect by changing the subject, let me spell this out for you:

People who do not have disposable income cannot donate to charities as they don’t have the financial means to do so. This is absolutely an issue of “access”, in a very practical sense, and one that the wealthy do not share. Therefore your earlier, and repeated, claims that the poor have equal access to the tax avoidance loopholes used by the wealthy are laughably false. @MikeBon

@pmonks @MikeBon

And as ive responded with cou tless times, since making charitabke donations costs you more money rsther than saving overall it is not a tax loophole or an advantage in anyway. So the fact that poor people dont make donations has no relevancy here.

@freemo that’s not a question of access, but of benefit. You repeatedly claimed that the poor have *access* to these loopholes, a claim I have repeatedly disputed and that you have repeatedly refused to defend. I’m beginning to think that you know it’s a false claim, but are unwilling or unable to admit that it’s false. @MikeBon

@pmonks @MikeBon

Just to recap you think tbe rich have access to a loophole in taxes the poor dont have because they have the option to spend 10 million giving to charity to say 1 million in taxes them. Somehow being able to loose 9 million total is sone sort of tax loophole they use to keep their wealth...

Okkkkkk.... pretty sure you know yojr talking nonsense

@freemo again, you’re confusing “access” and “benefit”, and I’ve only been focusing on the former thus far. You do understand that these are different things, right? @MikeBon

@pmonks @MikeBon

Call it whatever you want you do understand your stance is nonsense i hope to the original point of rich having access to loopholes that get them out of taxes, which this is not since it isnt saving them money...

@freemo I’m indeed open to the possibility that my stance is nonsense, otherwise I wouldn’t have continued this conversation for this long.

However you’ve done nothing to convince me that that’s the case, in part because you refuse to answer clarifying questions when asked, change the subject at will, and in your latest response appear to think that the meanings of word don’t matter. I’m not sure this conversation has any further value.

@pmonks if you cant see why the rich having the ability to spend 10k on charity to get 1k off their taxes is not a loophole or a way to take advantage then i really dont know what to tell you... you keep trying to muddy the water with semantics and its so obvious it just looks absurd.

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