Quote:
Originally Posted by Bonded
That’s a lot of word salad that doesn’t address anything I said. Taxation just doesn’t happen at the individual level. Capital accumulation allows people and companies to access even more capital to continue concentrating wealth. The easiest example that I think should be cut is the ability to access loans against equity in order to avoid taxation events. The middle class is paying 40% in taxes and the wealthy are getting low interest rate loans. Flight is finally here but keep on fighting for that Atlas Shrugged world you so desire.
|
You haven't described anything that anyone should find objectionable. If you don't like the mechanism of taxation, nothing wrong with suggesting changes. But that won't solve the problem with your perspective.
Your misunderstanding is that capital accumulates into wealth to a far greater degree than it actually does when the overall flow of capital is considered. The goal is to have the flow of capital be deployed in a way that creates economic growth and wealth. That's why tax cuts work - although a certain amount of taxation and government activity is beneficial. This target fixation on where and how the small portion of the wealth that gets accumulated by individuals is to not see the forest for the trees.
Let's look at an example, since people seem to not want to consider abstract concepts (nothing says I can't grasp the abstract than using the phrase "word salad").
Mckesson is a multinational corporation which distributes drugs. That's all it doesn. Delivers drugs from one party to another party. It does so with tiny profit margins. Let's call the revenue $308 billion per year. It's cash flow is about $3.6 billion. You could say it accumulated about 1% of the "capital" that flowed through the company. What happened to the other 99% that was not accumulated? It paid employees, paid suppliers for drugs (paying their employees), etc. Your trickle down theory suggests that the $3.6 billion is the most relevant portion of the capital flow. But that should, on its surface, be an absurd claim to make. This is the same with any profitable business.
Frankly, it's envy disrupting your ability to see what should be obvious to you, which is understandable. It's not exactly intellectually elevated, though.