America's tax policy prompts some to turn to socialism

AKRON, Ohio — Colin Robertson wonders why he pays federal taxes on the $18,000 a year he makes cleaning carpets, while the tech giant Amazon got a tax rebate.

His concerns about a tilted economic playing field recently led Mr. Robertson to join the Akron chapter of the Democratic Socialists of America. At a gathering this month, as members discussed Karl Marx and corporate greed over chocolate chip cookies, it wasn’t long before talk turned to income inequality and how the government helps the wealthy avoid taxes.

“One of the benefits of taxation is taking it and using it for the collective good,” said Mr. Robertson, 25, comparing his minimal income to the roughly $150 billion net worth of Jeff Bezos, Amazon’s chief executive and the world’s richest person.

“He could be taxed at 99.9 percent and still have millions left over,” Mr. Robertson said, “and I’d be homeless.”

Profitable Giants Like Amazon Pay $0 in Corporate Taxes. Some Voters Are Sick of It. https://nyti.ms/2GFymnk

Jeff Bezos will be $39 billion poorer this year, after his divorce settlement goes through (or was that $35 or 36 billion -- it was a couple of months ago..).

So that should read $111 billion at the moment, though it could well be back up to $150 billion in another couple years or three..

Besides which -- both company/corporate and personal/PAYE/investment taxes are paid on income, and not on one's net wealth. Thankfully..

>THE Ben Reilly< wrote:AKRON, Ohio — Colin Robertson wonders why he pays federal taxes on the $18,000 a year he makes cleaning carpets, while the tech giant Amazon got a tax rebate.

His concerns about a tilted economic playing field recently led Mr. Robertson to join the Akron chapter of the Democratic Socialists of America. At a gathering this month, as members discussed Karl Marx and corporate greed over chocolate chip cookies, it wasn’t long before talk turned to income inequality and how the government helps the wealthy avoid taxes.

“One of the benefits of taxation is taking it and using it for the collective good,” said Mr. Robertson, 25, comparing his minimal income to the roughly $150 billion net worth of Jeff Bezos, Amazon’s chief executive and the world’s richest person.

“He could be taxed at 99.9 percent and still have millions left over,” Mr. Robertson said, “and I’d be homeless.”

Profitable Giants Like Amazon Pay $0 in Corporate Taxes. Some Voters Are Sick of It. https://nyti.ms/2GFymnk

He's not paying federal income tax at that income. Maybe some Social security and Medicare.

WhoseYourWolfie wrote:

Jeff Bezos will be $39 billion poorer this year, after his divorce settlement goes through (or was that $35 or 36 billion --  it was a couple of months ago..).

So that should read $111 billion at the moment, though it could well be back up to $150 billion in another couple years or three..

Besides which --  both company/corporate and personal/PAYE/investment taxes are paid on income, and not on one's net wealth.  Thankfully..

And stockholders pay taxes on earnings and dividends.

Maddog wrote:

WhoseYourWolfie wrote:

Jeff Bezos will be $39 billion poorer this year, after his divorce settlement goes through (or was that $35 or 36 billion --  it was a couple of months ago..).

So that should read $111 billion at the moment, though it could well be back up to $150 billion in another couple years or three..

Besides which --  both company/corporate and personal/PAYE/investment taxes are paid on income, and not on one's net wealth.  Thankfully..

And stockholders pay taxes on earnings and dividends.  

Note where I wrote "investments" above --

Investments includes stocks and bonds, as well as properties, cash deposits and managed funds, and maybe some of the assets in a small businesses/sole trader operations..

The situation isn't much different in the UK. Huge international companies such as Amazon and Costa get away with paying paltry amounts of tax in relation to their UK earnings, yet even the smallest of High Street shops have to pay both the usual range of taxes and huge and often unaffordable locally-administered business rates.

Add this to ridiculously high rents charged by commercial landlords and it is easy to see why traditional town centres are now full of coffee shops, take-aways, betting shops and charity outlets.

Plus Nail Bars !

Fred Moletrousers wrote:The situation isn't much different in the UK. Huge international companies such as Amazon and Costa get away with paying paltry amounts of tax in relation to their UK earnings, yet even the smallest of High Street shops have to pay both the usual range of taxes and  huge and often unaffordable locally-administered business rates.

Add this to ridiculously high rents charged by commercial landlords and it is easy to see why traditional town centres are now full of coffee shops, take-aways, betting shops and charity outlets.

Even the Scandinavians don't charge high corporate taxes. They want the businesses to thrive to keep employment high, and then they tax the individuals a great deal.

It's why their economies are capitalist and not socialist.

Maddog wrote:

Fred Moletrousers wrote:The situation isn't much different in the UK. Huge international companies such as Amazon and Costa get away with paying paltry amounts of tax in relation to their UK earnings, yet even the smallest of High Street shops have to pay both the usual range of taxes and huge and often unaffordable locally-administered business rates.

Add this to ridiculously high rents charged by commercial landlords and it is easy to see why traditional town centres are now full of coffee shops, take-aways, betting shops and charity outlets.

Even the Scandinavians don't charge high corporate taxes. They want the businesses to thrive to keep employment high, and then they tax the individuals a great deal.

It's why their economies are capitalist and not socialist.

Unemployment is deceptive statistic. Low unemployment in an economy flooded with minimum wage jobs is no relief to the lower or middle class. It's a wealthy man's indicator, as is the stock market (only the wealthy participate).

A more favorable indicator is the wage gap measurement between poor and rich...the so-called 1% vs 99%. Bringing that differential down is a good indicator of a healthy economy.

Trump pressed through Congress a massive tax cut, but as we see, while it yielded billions for corporations, it resulted in a tax increase for the common person in that it also eliminated many common deductions that common people relied on.

What happened, in effect, is that the common people paid more to make up for the tax break for the wealthy. Republicans and Tories = tricks and mirrors.

Besides, there's nothing wrong with socialism. Social security works fine in the US, as does the US Military...both socialist programs.

Maddog wrote:

Fred Moletrousers wrote:The situation isn't much different in the UK. Huge international companies such as Amazon and Costa get away with paying paltry amounts of tax in relation to their UK earnings, yet even the smallest of High Street shops have to pay both the usual range of taxes and  huge and often unaffordable locally-administered business rates.

Add this to ridiculously high rents charged by commercial landlords and it is easy to see why traditional town centres are now full of coffee shops, take-aways, betting shops and charity outlets.

Even the Scandinavians don't charge high corporate taxes. They want the businesses to thrive to keep employment high, and then they tax the individuals a great deal.  

It's why their economies are capitalist and not socialist.  

Once again, you are showing your economic ignorance with your bullshit "capitalist" versus "socialism" comparisons...

In a purely "capitalist" economy, you will have no national army or police forces - only privately owned and run services;  no 'free' education, no public health services --  all "essential services" would be 'user pays';  no regulations over environmental protections, no workplace safety laws, no controls over food, materials or manufacturing 'standards'  --  NO country runs a purely 'capitalist' economy and survives.

No country has ever managed a total "communist" style of socialism either, where you would have no private property or privately-owned businesses --  even when they have tried, they either devolve into elitist-controlled dictatorships or oligarchies, or they fall apart and crumble like the USSR in the 1980s..

Democratic countries will end up with some form of "mixed economies" where you have significant "free market" influences, the 'right' to own property and businesses,  yet still have "socialist" styled education  and health systems, welfare safety nets, and regulations concerning workplaces, food standards, hygiene and public health, necessary 'essential services', and protections for the wider environment.

Otherwise you ended up with a "broken/ incomplete" partial-democracy like the USA, with its' ever-widening disparities between the rich and poor, and an uneducated and selfish minority that had grown large enough as to vote Donnie the Dumpster in as president.