The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax — ProPublica

The key takeaway is that the US taxes INCOME, not WEALTH. That means it ALWAYS taxes workers higher than owners.

We might say, “okay, the workers should invest and become owners so they can benefit in the same way. This is absolutely TRUE, and what the middle, upper-middle, and upper classes do.

But all lower classes of income/wealth are UNABLE to do this because of the suppressed incomes and policies which benefit the wealthy, but harm the poor.

A key way around this is to have a minimum wage that is proportional to poverty wages in each locale.

Also, protecting mandated insurance funds by requiring congress to be held accountable for the violation of fiduciary duty in what they have done to social security. Open that back to the wider market, instead of mandating crappy, low-yield government funds.

Alternatively, allow portability of a person’s premiums plus the earnings they should have made into a fund that is regulated by law, and managed by fuduciaries, but not accessible fir early withdrawal. (same rules as ssa old age and survivors fund).

Next would be some equitable way to tax wealth growth beyond some basic amount. (eg, don’t raid granny’s retirement fund, and don’t destroy all market value by over-liquidating holdings, but maybe some mandatory minimum tax of 1% yearly of your holdings outside of retirement accounts? Or 10% of holdings growth?)

I dunno. It’s all messy. Every option has problems, but what option has the least AGGREGATE problem (fewest people, lowest impact, all summed up).

/r/worldnews Thread Link - propublica.org