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Posted

fredgraph.png?g=1KQAE&height=490   

 

Median sales price of a home nearly TRIPLED in the 70's.  Never would have guessed that.  roughly 24K to 64K.   Although those numbers seem laughably small now.  I assume that is the inflation of that decade effects.

 

Posted
34 minutes ago, Incredulity said:

The federal income tax is currently extremely progressive.  Are you referring to other taxes? 

once you hit the kind of income and wealth that I mentioned it's the exact opposite and it's extremely regressive. employment taxes are regressive as well taxing only the first $175,000. I agree at the very, very bottom it's progressive, but it isn't for the middle 50% compared to the benefits at the very tip top.

Posted
9 minutes ago, scramblyn said:

once you hit the kind of income and wealth that I mentioned it's the exact opposite and it's extremely regressive.

Taxes on wealth and taxes on income are pretty distinct topics.

As I stated I think there should be higher rates on higher income levels.  My preference would be the brackets are shifted up, provide relief to middle, and marginally increase top rates at very top with additional brackets as well.

Social Security payroll taxes are regressive, although that is increased every year.  Medicare payroll is a progressive tax with additional above 200K.

 

Posted
35 minutes ago, Incredulity said:

Taxes on wealth and taxes on income are pretty distinct topics.

As I stated I think there should be higher rates on higher income levels.  My preference would be the brackets are shifted up, provide relief to middle, and marginally increase top rates at very top with additional brackets as well.

Social Security payroll taxes are regressive, although that is increased every year.  Medicare payroll is a progressive tax with additional above 200K.

 

I wasn't raising the wealth tax issue. although I could see taxable debt as a thing.

Posted
35 minutes ago, Incredulity said:

Taxes on wealth and taxes on income are pretty distinct topics.

As I stated I think there should be higher rates on higher income levels.  My preference would be the brackets are shifted up, provide relief to middle, and marginally increase top rates at very top with additional brackets as well.

Social Security payroll taxes are regressive, although that is increased every year.  Medicare payroll is a progressive tax with additional above 200K.

The reality is that the wealthiest people have NO income. Jeff fuckin Bezos qualified for childcare assistance credits because his income was so low. Their value is all in stocks that have grown, which they can liquidate tax-free through taking loans against the paper value. And then when they can goose the stock up they renegotiate their loans and keep the debt cycle going.

Alllllll tax-free, of course. 

Posted
42 minutes ago, Captainant said:

which they can liquidate tax-free through taking loans against the paper value

Its a market distortion brought on by ZIRP.  All debt has risk, leveraging your individual stock holdings isn't some new phenomenon.  Quite easy to get your face ripped off with a stock move in the wrong direction.   

Posted (edited)
7 minutes ago, Incredulity said:

Its a market distortion brought on by ZIRP.  All debt has risk, leveraging your individual stock holdings isn't some new phenomenon.  Quite easy to get your face ripped off with a stock move in the wrong direction.   

not when you borrow $25B on $500B in stock value. we can all get our faces ripped off at 50-75% LTV on a stock portfolio for sure.

It's very hard to fathom how easy it with the leverage of extreme wealth. it's almost incomprehensible. 

Edited by scramblyn
  • Hook 'Em 1
Posted
2 minutes ago, scramblyn said:

not when you borrow $25B on $500B in stock value. we can all get our faces ripped off at 50-75% LTV on a stock portfolio for sure.

It's very hard to fathom how easy it with the leverage of extreme wealth. it's almost incomprehensible. 

Jeff Bezos borrows 25B in November of 2021.  Amazon stock price $183.

Whats the status of Jeff Bezos face in Dec of 2022. Amazon stock price $84.00?

 

His 500B just took a topline haircut of 250B and his loan collateral is underwater 12B.  I'm sure the lender is going to demand more collateral.  Oh by the way rates are going to jump 5% in the next 12 months.

 

 

So again what is easy about that?

 

 

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