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PaperclipPerfector  2mo ago (text post)   33968 thread views

Culture War Roundup for the week of September 9, 2024

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You’re acting like individual income tax avoidance is a bad thing? Just like Trump’s proposed tax incentive on tips, this too would benefit blue-collar and service sector workers. Maybe we should be advocating policies that place a greater proportional tax burden on those who society caters to already: corporations and white-collar PMCs?

This isn’t the first time that politics has created tax incentives for employers based on hours worked, either. Remember that the Affordable Care Act’s large employer mandate kicks in for “full-time” employees who work 30 or more hours per week? Take this with a huge grain of bias, but the Cato Institute in 2023 found that there was a minor effect in reducing FTEs due to the employer mandate.:

[w]e estimated that the ACA increased low-hours, involuntary parttime employment by 2–3 percentage points, or 500,000 to 1 million workers, in retail, accommodations, and food services—the sectors where employers are most likely to reduce hours if they choose to circumvent the mandate.

Maybe we should be advocating policies that place a greater proportional tax burden on those who society caters to already: corporations and white-collar PMCs?

There's already a much easier way to do this: Increase marginal rates on higher earners. This comes with the added benefit of actually increasing government revenue and not decreasing it.

Maybe we should be advocating policies that place a greater proportional tax burden on those who society caters to already: corporations and white-collar PMCs?

Here in the real world, white-collar PMCs are already shouldering an absolutely massive share of the tax burden. The top 10% make about 50% of the income and pay about 70% of the taxes; the top 25% make about 70% of the income and pay about 85% of the taxes.

"The only tax analyzed here is the federal individual income tax, which is responsible for more than 25 percent of the nation’s taxes paid (at all levels of government). Federal income taxes are much more progressive than federal payroll taxes, which are responsible for about 20 percent of all taxes paid (at all levels of government) and are more progressive than most state and local taxes."

Yes, and? It's Federal Income Tax we're talking about here. Including payroll taxes makes it less progressive but the upper 25% is STILL paying the lion's share. State and local taxes are irrelevant.

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