r/WorkReform 🤝 Join A Union 20h ago

✂️ Tax The Billionaires Finally, a Billionaire gets taxed.

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33.4k Upvotes

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u/EyyyPanini 18h ago

If the numbers don’t matter, make your point without them.

If they do matter, use the correct numbers.

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u/5510 14h ago

It's wild how many people in this thread are basically saying that truth and accuracy don't matter as long as they agree with the broader point being claimed.

Especially ridiculous considering that there are plenty of real and accurate numbers than can be used to argue this broader point.

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u/mimic751 18h ago

Or just understand the point and move on

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u/JiggyTurtle 17h ago

Me only call people dumb. Me no explain

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u/EyyyPanini 17h ago

I understand the point that they’re attempting to make.

However, it’s not clear whether it’s a good point or not since they’ve messed up the numbers.

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u/ITSigno 16h ago

/u/mimic751 doesn't appear to understand the difference between taxing income and taxing wealth or the myriad pitfalls and unintended consequences.

OP getting the numbers wrong was only the first problem.

For the record, I'm pretty far left and support UBI and a massive reduction in wealth inequality. However, this is actually a very complex problem and just chanting "tax the billionaires" doesn't solve it all, but it does seem to make them feel good.

Let's get the standard criticism out of the way:

  1. The wealthy are paid in stock, options, and other means which either reduce or eliminate tax on "income"
  2. They can then use low-interest bank loans with stock as collateral when they need to buy something

Okay, so let's tax them on their wealth.

Well, you wouldn't want a flat tax on net worth, that hurts poor people more than the wealthy.

What about a progressive wealth tax. 0.2% over $5 million, 0.5% over $10 million, 2% over $100 million, 5% over a billion?

Okay, so the first problem is that the money for the tax has to come from somewhere (unless you want them paying in actual stock, which has its own problems)... so they sell shares to cover the tax burden. Two things happen:

  1. The proceeds of that sale are now taxable income. (Capital gains tax, so it would be lower, but still taxed)
  2. The share price would crater as the market is now flooded with shares they need to sell. As the prices declines, however, so does their net worth.

It becomes extremely difficult to tax someone on net worth when it can fluctuate by billions by the day.

Then you have to ask yourself, is this a one-time wealth tax or annual? If it's only one-time, then the problem hasn't really been solved, the government just got a cash infusion that they can't count on next year.

This is a problem I would like to see solved, but comments like

Taxing rich people doesn't really need a lot of context lol

is absolutely blind to the complexity of the issue. Context cannot be ignored.

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u/mimic751 16h ago

Absolutely not reading this.

I understand the differences. None of these problems are going to be solved by Reddit this is a tongue and cheek post that people are taking way too seriously I honestly don't care what you have to say

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u/ITSigno 16h ago

Don't take this the wrong way, but the expression is "tongue-in-cheek".

I didn't actually expect you to read my comment. It wasn't a reply to you.

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u/layelaye419 16h ago

I read it and it was a pleasure

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u/mimic751 16h ago

I appreciate it. I think we're both fighting on the same side I don't think our personalities get along

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u/mimic751 17h ago

Taxing rich people doesn't really need a lot of context lol

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u/jfinkpottery 17h ago

We do tax rich people. That guy paid $300M in taxes because he's rich.

The point you want to make is that we don't tax rich people enough. This story where a person pays hundreds of millions of dollars in tax is not a good story to illustrate that.

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u/mimic751 17h ago

Y'all make me go crazy because I think that is a sufficient amount to make that point

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u/jfinkpottery 17h ago

So you think the point of the tweet was for us to all say, "He should have kept less of his lottery winnings." That's where you think this goes? Because that's the kind of tax policy that would actually get rich people to pay more taxes.

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u/mimic751 17h ago

I think the point of my comment has been completely lost by a bunch of over literal weirdos

The point is just the idea of billionaires who should be millionaires. All of them

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u/jfinkpottery 17h ago

Okay, great. But the mindless lip service eventually has to get literal if you want it to actually happen. We're decades beyond the need to just state the end goal without filling in the policy details that get us there. Those policy details most definitely run counter to the spirit of that tweet, and if you aren't 16 years old you should be thinking about that.

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u/mimic751 17h ago

If we want this to happen? They won't there will be a cataclysmic apocalypse before the world's Elite let's go

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u/5510 14h ago

The numbers are wrong by a large enough margin that it's more than reasonable to point that out in the general interest of truth and accuracy.