How would you build the perfect tax system and how much would the state do?

It makes perfect sense because that is what is going on.
The basic problem is that people like you do not connect government debt with the money supply.
Government debt removes money from the economy. The central bank reacts by increasing the supply of money to certain sectors of the economy in the hope that doing so will increase the supply of money in the broad economy.

Hoping is how the speculative markets can reach record highs while the rest of the economy continues to stagnate because the sectors the central bank flooded with money, the speculative markets, have no rational reason to share their windfall because of the favourable tax treatment of speculative market participation over any other economic activity.

The conception that government tax policy favouring the wealthy has nothing to do with the current economic situation is a lie. The argument that taxing "investors" more would bring economic catastrophe is an even bigger lie. The lie that raising the tax on capital gains would raise the taxes on all the people with 401Ks is the biggest lie of them all.

This medium term experiment in favourable tax treatment for speculative market participants is failing miserably as a prescription for widespread economic growth. If anything, the data is indicating the exact opposite.

 

I wouldn't call it BS as indeed these loopholes are unpatriotic. Yes we need to change the tax code - it's what I've been saying on this forum enough times. Obama has done his part to try to get it changed but Republicans in Congress refuse to do so. Blame them, not him.

 

The nation has been operating for decades without amassing huge debt without having taxes on speculative markets so it is obvious to me that governments simply spend more than they are willing to collect in taxes and have no concern about accumulating debt. No matter where you remove cash from the private sector and give it to government, you will lose money in the process. The problem is primarily out of control spending followed by Americans not willing to fund the government which they demand. Another issue which most of you refuse to acknowledge is there are no guarantees that the private economy in the US can comfortably support all of the citizens...the economy is what it is based on the global marketplace. Instead of the US becoming more of a welfare state, it needs to figure out how to involve more citizens in this global economy...

 

Who cares where a business locates their headquarters? Or open facilities? Or does business? It is narrow-minded thinking for those who believe everything must reside in the USA! The US, it's citizenry, US business, etc. must compete in the global marketplace...not put in place stupid political roadblocks. In what possible logical scenario does the US have a right to apply income tax on profits which were earned outside of the USA? If China's corporate tax rate is 25% and in the USA it is 35%, and a US company has consumers in the China markets, then it makes perfect sense to locate headquarters and/or facilities in China. And that US company will pay applicable corporate taxes on their profits in China...any cash left over should be able to be used anywhere in the world without further taxation like the US demands...

 

The government has been operating at a deficit and accumulating debt ever since it began reducing taxes on speculative market income.
The primary problem is that all economic gains are now concentrated in the markets, where income from speculation gets far more favourable tax treatment than any other economic activity.
It is not a matter of Americans unwilling to fund their government so much as a matter of those who gain the most from the US economy convincing everyone else that not taxing them is somehow better for everyone, which is decidedly not the case.

The US was here a century ago. The cycle is set to repeat. Just like then it is likely that the American people will object to being crushed by the unmitigated greed of the wealthy.

 

If that "rationale" is valid then we should ship the government over to China as well so that the taxpayers can save a few bucks every year.

 

The government gets its operating cash from three sources, printing, borrowing, and taxation. Borrowing is already the same as printing as it will be printed sooner or later to pay it back. I've never heard of an equitable tax system other than the one I just mentioned, which puts an equal tax on every dollar. I say, just let the gov print the money it needs to operated and then watch those authorizations.

 

You have one entire political party winning elections by promising tax cuts while forgetting all about the bills the country has approved and accumulated.

 

Tax problems in the USA are not about the speculative markets.

It is not correct that 'all' economic gains are concentrated in the markets?

Who cares what the tax rates are for any area of taxation? Maybe you should do some research to find out that government, in today's dollars, was spending about $2000 per citizen 50 years ago and today it is almost $12,000 per citizen. The debt problems are government spending IMO on so many unimportant things...from war mongering to the ridiculously high cost of operating government. But we'll never change this because all of us are greedy and refuse to give up anything!

Do you think a federal income tax problem might be that 50-100 million Americans pay little or no federal income tax?

 

Government is local and today is a cash machine providing lots of jobs...no one will allow outsourcing...

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IMO it would be reckless to create more debt and further devalue the dollar simply to avoid US citizens paying taxes...

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Both parties with great vigor approve government spending...government spending is not a left-right issue...

 

Then all the economists and all the economic data are wrong. If they cant find it anywhere else then maybe you have it under that rock.

Not really, the income tax was never meant to be a poll tax, which is illegal btw.
I think the real problem is that the government is not getting enough revenue from the people who can afford to pay.
Answer me this:
Why is it not a problem that $100,000 made from gambling on the stock market is taxed at 15% while $100,000 made from working at a job is taxed at 38%?