Ahh the old trickle down theory eh? You realize that was a massive failure right? The biggest theft from American working people in history? It seems you'd prefer to have modern robber barons with more than enough money than they could spend in 1000 lifetimes while the poor, children and elderly starve.
Meanwhile you have companies like Exxon and Tyson price gouging the F out of the American public claiming "inflation" while at the same time having their highest quarterly profits IN HISTORY.
What the F is it with conservatives and their hatred of poor people and immigrants? They don't already have it hard enough? It's hilarious to me how conservative media convinces people to march together lockstep against the tyranny of SNAP.
I'll be anxiously awaiting your next "bootstrap" argument.
Bro, you're an econ guy. You understand math. There is a really delicate balance between CAGR of the economy/capital base and tax rates and because it is an insanely complicated multivariate model, agreement on a proper mix is impossible. But, ceteris paribus, you understand that at some level a higher tax rate is going to destroy GDP and investment CAGR. Over the course of a generation, the difference between a 3% CAGR and a 1% CAGR is immense. When you adjust for GDP growth, it really doesn't take much time for a lower tax rate to yield a higher net revenue for the government than a higher tax rate that stifles GDP growth.
Maybe this will prove to be an unpopular opinion because I know everyone wants to shit all over the government for everything, but I think all things considered the government has done a pretty good job of balancing GDP growth with tax rates in my lifetime. In 2001 collections were a hair under $2 trillion. For 2021 they are expected to come in at just a hair over $4 trillion. Doubled in 20 years. That's pretty damned good work, IMHO.
You strike me as a pretty smart guy, I'll bet you save money for your future and you probably have some exposure to the stock market. Those so-called "robber barons" have millions of coinvestors, middle class people just like you. They have created trillions of dollars of wealth that have flowed to millions of people with 401Ks or investment accounts that just sit there in passive funds. As Tesla stock gapped up over the past few years, you know that no one was actually made worse off because Elon Musk's paper wealth went up. To the contrary, you saw Tesla drive your passive stock funds up by a few percent just on its own. The wealth gap grew, but the increase in Tesla stock didn't make anyone worse off. The wealth gap closed dramatically in 2009 as people like Bill Gates or Warren Buffett saw paper losses totaling billions of dollars a day, but no one said "oh man, this is great that the wealth gap is closing." It cratered federal tax receipts.
You bolded "IN HISTORY" perhaps showing your disdain for corporate profit. Here's the thing, other than in times of massive deflationary spirals or absolute economic calamities, many publicly traded corporations are going to set new records for profits. Corporate profits tend to rise over time. That's why you are in the stock market.
Tax policy needs to be geared toward revenue generation, not to appease peoples' anger that they are proles. When you make it emotional, the results aren't good. That said, I would have no qualms with a far more aggressive estate tax that hits the oligarch class and actual collection mechanisms so you don't have dynastic families like the Cargills, Fords, Mars Family, etc. Let someone grow a $100 billion fortune, I don't care, just claw a bunch of it out when they die because net net that would probably generate a lot more revenue than tax hikes that cripple the growth of investments. I have no issue if "socialite" ceases to be a career option for the likes of Paris Hilton. But would Congress really have the balls to actually do that? I doubt it.
