Why Do Democrat Politicians Prefer To Spend Other Peoples Money?

[Eagle-Keeper]

@LouC

Democrats like to spend other people’s money for the exact same reason that Republicans like to spend other people’s money.

Spending other people’s money is a lot more fun!

Also there is no sacrifice or pain on their part. How many politicians deliberately live below their means so that they can give 70% of their income to the poor?

[Mountain_Soldier]

@PurpnGold

In your example…You are left with 1% but that is not how marginal tax rates work.

It is on everything in that rate.

[Toll_Collector]

@PurpnGold

In your example…You are left with 1% but that is not how marginal tax rates work.

Right. But who is arguing how marginal tax rates work? Even if someone does not know how they work, it’s not because they’re stupid, it’s because they never bothered to find out. Same goes for those that know how they work. It’s nothing to be proud of as it is no more complicated than 2nd grade math.

[PurpnGold]

That is what this discussion is about. Marginal tax rate on anything above 10 million.

[Eagle-Keeper]

@carpe_diem

Rich people are smart enough that they would always find away around that 70percent.

Even if that meant taking their business, or money elsewhere.

Just like Socialism the 70percent may sounds good and look good on paper.
But in reality, it doesn’t make any logical sense to do in America.

It also gives lawyers an opportunity to develop ways around those laws so that they can make money off of any new legislation as well. This is the main reason most lawmakers - most of whom were lawyers or have law degrees - like a very complex tax code.

[Eagle-Keeper]

@Toll_Collector

I think he meant to have payment be in a form that would go under capital gains as opposed to income. Anything to avoid 70%. Because it’s not just 70%. We have payroll taxes, State taxes, the agent takes a percentage, among other deductions. You can’t expect players to accept 10-20 cents on the dollar. That’s flat out robbery. I know I wouldn’t do it.

The thing at the professional corporate level all of those salaries are negotiated. I can’t even think of what high incomes are not negotiated? Even athletes negotiate their salaries. Nonetheless, it is hard to imagine anyone negotiating for a salary in which >80-90% is going to be taxed. In other words there is no point in having that as income. So it is very unlikely that tax rate would generate the revenue one would predict.

[reflechissez]

A company car is taxed as ordinary income. Non-qualified stock options (NSOs) are taxed at ordinary income when exercised. If you hold the stock the for over a year, the gains will be taxed at capital gains rate.

Incentive stock option (ISOs) are not taxed when exercised but the gain is used to calculate the AMT. If you sell the stocks within a year, the gain will be taxed as ordinary income but at cap gains rate if held for more than a year.

Most options are granted as NSO’s. Note: all of this assumes the value of the stock goes up.

[Toll_Collector]

@Eagle-Keeper

The thing at the professional corporate level all of those salaries are negotiated. I can’t even think of what high incomes are not negotiated? Even athletes negotiate their salaries. Nonetheless, it is hard to imagine anyone negotiating for a salary in which >80-90% is going to be taxed. In other words there is no point in having that as income. So it is very unlikely that tax rate would generate the revenue one would predict.

At least for the NFL most salaries would be structured differently than they are now. As of right now a player can average 8-10 Mil a year and get a 20 million dollar signing bonus that is prorated over the life of the contract for cap purposes but the player receives it all at once. That would come to an end. They would most definitely not take their bonus all at once.

The NBA and MLB would have to figure out more creative ways because they are paid much more on average. But players in the NFL, even star players, wouldn’t need to see anymore than 10M per year.

[Eagle-Keeper]

@Toll_Collector

At least for the NFL most salaries would be structured differently than they are now. As of right now a player can average 8-10 Mil a year and get a 20 million dollar signing bonus that is prorated over the life of the contract for cap purposes but the player receives it all at once. That would come to an end. They would most definitely not take their bonus all at once.

The NBA and MLB would have to figure out more creative ways because they are paid much more on average. But players in the NFL, even star players, wouldn’t need to see anymore than 10M per year.

I could even see those high earners negotiating for life insurance policies as a means of compensation. Nonetheless, anything and everything to avoid that sort of tax rate.

[highroller]

You would most likely see guaranteed money in the contract even if the player is cut. That way they would drag out the taxes over several years.

[reflechissez]

@Eagle-Keeper

@Toll_Collector

At least for the NFL most salaries would be structured differently than they are now. As of right now a player can average 8-10 Mil a year and get a 20 million dollar signing bonus that is prorated over the life of the contract for cap purposes but the player receives it all at once. That would come to an end. They would most definitely not take their bonus all at once.

The NBA and MLB would have to figure out more creative ways because they are paid much more on average. But players in the NFL, even star players, wouldn’t need to see anymore than 10M per year.

I could even see those high earners negotiating for life insurance policies as a means of compensation. Nonetheless, anything and everything to avoid that sort of tax rate.

Replacing income today for something else has tradeoffs.

[carpe_diem]

We should just take the tippy tippy tops, and stuff.

[wayoutwest]

You know what makes no logical sense? Youre supposed understanding of the tax system.

Educate yourself on marginal tax rates, then come back and start a new thread that maybe doesn’t fail so bigly…

[carpe_diem]

I don’t think that 74 posts in a thread is failing. I’ve seen a lot worse several times.

I think you should start a thread about this subject.
After all, it’s you posting in my thread. Why post in it, if I’m not “Educated”
enough in marginal tax rates, or anything else for that matter on here.

[LouC]

Donald Trump (the Democrat) just proposed he wants to spend the following Taxpayers money: “ … $800 million in urgent humanitarian assistance; $805 million for drug detection technology … $5.7 billion for a strategic deployment of physical barriers, or a wall.”

Read: President Trump's address on immigration proposal, ending shutdown |...

Why does (Democrat) Donald Trump want to spend this money that is not his aka “other peoples money”?

[Borgia_dude]

@matt1618

In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.

If I take your logic to its conclusion, we would lower tax rates to 0% and maximize revenue. Do you really think that would result in max revenues?

So if you want to maximize revenue (say to pay debt), there is likely an optimal tax rate for this goal. You have provided no evidence that lowering rates would bring us closer to that optimal rate.

[Samson_Corwell]

@carpe_diem

Do we not have enough Taxes in America? The Democratic Politicians think to seem that we need more, and in their Liberal controlled states, they’re going to force higher Taxes upon
the American people. Weather they like it or Not!

How about you America? Do you want higher taxes?

PolitiFact | Explaining Alexandria Ocasio-Cortez's 70 percent marginal tax rate idea

Should Americans have to work harder so they have to pay for every Refugee, and Illegal Immigrant that the Democratic Party forces you to do so? Because Democratic Politicians think to seem that this should be the case.

What the Democratic Politicians want is for more people to have to rely on the government, and Socialism. In other words, if you remember Under the Obama administration how many more millions of Americans were on Food Stamps, and Welfare? Well, with the Democrats Socialist agenda it would be Obama times 1,000!

“Bernie Sanders released his 2014 tax return this weekend, revealing that he and his wife took $60,208 in deductions from their taxable income. These deductions are all perfectly legal and permitted under the U.S. tax code, but they present a morally inconvenient, if delicious, irony: The Democratic socialist from Vermont, a man who rages against high earners paying a lower effective tax rate than blue-collar workers, saved himself thousands using many of the tricks that would be banned under his own tax plan.”

Bernie Sanders's Tax Returns Reveal His Hypocrisy | National Review

It’s not “other people’s money”.

[WuWei]

@Jezcoe

@carpe_diem

So a 70percent tax increase is meaningless to you?

Adding an upper bracket at 70% would affect my life none.

For now. You have potential.

[Eagle-Keeper]

@WuWei

So a 70percent tax increase is meaningless to you?

Adding an upper bracket at 70% would affect my life none.

For now. You have potential.

When you factor in State and local taxes that 70% would go to 80 or 90%. Nobody would be stupid enough to negotiate a salary level above that particular marginal rate.

[Samson_Corwell]

@Eagle-Keeper

When you factor in State and local taxes that 70% would go to 80 or 90%. Nobody would be stupid enough to negotiate a salary level above that particular marginal rate.

Oh, ye of little faith.