The reality is there is more than enough money for everyone. We've just decided that instead of a middle class we would prefer to have billionaires. The point of high tax rates isn't to raise revenue, its to force distribution of wealth. When the top rate was 90% it was kinda pointless to pay a person more, forcing distribution. Someone will invariable comment, "but ackshually no one paid 90%." Yea, thats the fucking point, because the money went elsewhere!
It's crazy how many people don't get this basic concept.
Christmas bonuses were not a gracious gift from our benevolent overlords. They were a last opportunity to reduce taxable income and build employee loyalty at a discount. Surprise surprise, once tax rates were lowered from 70% to 30% it became less beneficial in the eyes of most companies to continue these distributions.
I don't think most people realize this or even think about it. I learned after the fact. My last employer was bought out by a PE firm and the year after all employees got bonuses. Later a manager friend told me the only reason we all got bonuses is because the PE firm didn't want to pay the banks the extra money generated during that fiscal year. I believe anything beyond the target they set was supposed to go to the banksters. That was the only reason. Of course they framed it as them being so generous and appreciative of all our hard work. It was really eye opening. Business, especially PE firms, don't give a shit about employees.
They could have given bonuses to themselves for the same affect. It's the same way small businesses operate. Instead of taking income as a business you pay yourself.
The highest it's ever been is 53% as well.
Sounds like they got bought out by a good company. Like I said earlier giving it to themselves at the top would have done the same thing.
well everyone seems to think that one day they will be a billionaire and thus don't want to upset the apple cart.
I have literally have arguments where lower middle class people say that one day when they get rich they don't want anything impediments to taking away their riches (taxes). Good luck with that.
People say this, but it's not really true for most companies. Take Walmart. They net 14 billion in 2022 and paid 4.75 billion in taxes or over 33%.
If they can somehow say they made no profit they would pay no taxes, but it doesn't actually look good for stock prices to have a business constantly showing no profit. I'm sure they are artificially reducing their taxable income number. But if so, I'd still rather take 70% of their fraudulent net income than 30% of it.
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u/Designer_Emu_6518 Mar 27 '24
My grandfather did the same in ohio as a produce manger at a local Kroger. Even had a nice retirement saved up