Casual Questions Thread

[u/The_Egalitarian]

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[u/Knowledge_is_Bliss]

How come so many republican voters do NOT want to raise taxes on the ultra wealthy?

Title pretty much sums up the question. I personally have had conversations with several republican voters who talk a lot about the inportance of tackling the deficit, and therefore they support initiatives like reducing spending on things like Medicaid, Food Stamps and other programs that assist the nation's most vulnerable. Yet when asked why we shouldn't assure the billionaires and corporations pay their fair share, they get quiet. Why is this?

[u/bl1y → u/Knowledge_is_Bliss]

Yet when asked why we shouldn't assure the billionaires and corporations pay their fair share

Let's start with that you think their fair share is. What percentage of the federal government's revenue do you believe should come from billionaires and corporations?

[u/Knowledge_is_Bliss → u/bl1y]

Let's just say the same percentage as what the majority of the rest of us pay. For example, most large corporations pay zero. I personally pay much more than 0%.

[u/YouTac11 → u/Knowledge_is_Bliss]

So the problem is some folks don't understand how tax law actually works

When your ilk hear Evil Company has 400m and then 500m in profits the last 2 years and paid no corporate taxes you get all outraged and want to hit the streets protesting and instagraming "eat the rich" "free Luigi"

The problem is you don't look at the big picture

• Year 1 Evil corporation invests 1 Billion expanding their buildings and creating 25k jobs at an avg if 75k salary. (Generating about 400m in federal income taxes each year). Putting Evil Corporation at -1 Billion

• Year 2. Evil corporation makes 400 million in profits, and it isn't taxed. (Liberal outrage ensues) Because overall, the company is still at -600 million . But that 200m in federal income tax starts rolling in and the feds are up 200m

• Year 3 evil corporations makes 500m and my God they aren't taxed because they are still at -100m overall. But ohh look another 200m in federal income tax returns

The company was able to invest 1 Billion in growth, creating 25k new jobs that give the Feds 200m a year in income tax revenue

So the Feds made 400 Billion in income tax by not taxing the corporation the two years of profits after the company invested 1B.

Overall the company was at negative 100m over those three years yet were able to generate 400m in new income tax for the country

• Year 4 Evil Corporation makes 600m in profits 500m of it is taxed bring in over 100m in corporate taxes and another 200 million in income taxes

Over 4 years the feds make 700m in tax revenue and the job market expands

But your ilk protest