In a recent interview with the cable business network, CNBC, presidential candidate and avowed socialist Bernie Sanders said he had no problem with taxing the wealthy at 90%. What he's really saying is that he wants to wipe out rich people in this country. For example, if you live in California where the top tax rate is 13.3% and you make more than a million dollars, your combined state and federal rate would be 103%. In other words, you would owe more money than you earn. This doesn't even include other taxes you pay on your gross income, such as payroll taxes for Social Security and Medicare or real estate tax on perhaps one or more multimillion dollar homes.
So, what happens then?
We will see the biggest relocation we've ever seen of talented people, businesses, and corporations to countries with lower tax rates. With taxes that high, well-paid actors, who make millions per movie are going to leave; and the studios will follow in order to protect their own CEO's from having their incomes literally eradicated. The result will be lost jobs and less tax revenues; primarily in the middle class. In fact, we will probably hear that infamous giant sucking sound once more, as jobs and wealth start flooding into Canada with its low tax rate and commonality of language.
What this idiot, Sanders, doesn't seem to understand is that high income taxes create high rates of poverty, unemployment, reduced revenues, and slow economic growth. A fact that was clearly proven when President Kennedy proposed a substantial lowering of taxes for the top 91%. When implemented in 1964, the rate on the rich was lowered to 70%. In less than 4 years, tax revenues grew 68%. Poverty was reduced by 34%. Unemployment was lower and, economic growth was higher than anytime prior to that date, past or present, since World War II.
Bernie Sanders Would Tax The Income Of The Wealthiest Americans At 90 Percent: http://thinkprogress.org/economy/2015/05/26/3662773/sanders-90-percent-tax/
California Income Tax Rates: http://www.bankrate.com/finance/taxes/state-taxes-california.aspx
Top State Income Tax Rates For All 50 States: http://taxfoundation.org/blog/top-state-income-tax-rates-2014
What J.F.K. Knew About Economics And What Most Democrats Today Don't: http://cuttingthroughthefog.blogspot.com/2015/05/what-jfk-knew-about-economics-and-what.html