Monarchy vs. Communism in a war, the stats are finally in folks!!

[JollyRoger]

Originally posted by cgannon64
Picture this. You're a really rich Russian, and suddenly there is a revolution and the gov't says "We're taking half you're money to give to poor people." Honestly, who would want to do that?

Apparently rich Americans who get hit at about a 50% marginal tax rate by the various federal, state, and local taxing authorities. If you're poor, you can get welfare (if your not working), earned income credit (if your barely working), and get use of the infrastructure that is being paid for by the rich.

If you want to see a revolution, take away the earned income credit. It is the poor man's way to cheat on taxes. One married couple with four kids making $15,000 each gets a relatively small earned income credit. Lie on their return and file head of household, then total tax benefits increase by about $6,000 to $10,000. Its the governments way to encourage single parenthood (or at least encourage people to lie about being a single parent).

 

[Klasanov]

Which is incredibly stupid. The richer person should support more of the burden, but not as much as 50%. Lower taxes contribute to more money in the people's hands, More money makes more business, which makes even more money. That's the way I see it, anyway. But it's stupid that a married couple gets hit harder in taxes because they're married, then if they were single. No wonder no one seems to marry anymore.

Anyway, sorry about that bobgote. Anyway, in game terms, my experience with Communism was a good one. Corruption in my capital was immense, sure, but my non-core cities produced stuff. This was on Warlord though, so I was pretty much safe to do whatever I wanted.

By now everyone would have wiped me out if I was any higher.

 

[Trinity]

I thought the top tax rate was 37% under the tax reform law of 198*.

 

[JollyRoger]

Originally posted by Trinity
I thought the top tax rate was 37% under the tax reform law of 198*.

The top federal marginal rate is 39.6%. Of course this does not take into account state & local income taxes, property taxes, and sales tax. If you're a rich dead man who had lousy lawyers or no lawyers, the top marginal rate on your estate is 55% - in effect a second tax on your lifetime's accumulated, but unspent income.

 

[bobgote]

OK, i really don't mind the political stuff, but talking tax is just boring

 

[Trinity]

Last note on estate taxes. Most filthy rich people, at least those who know what they are doing, set up living trusts and completely skirt the estate tax laws. Most not so rich people, even when informed about this loophole, won't go further than a simple will, if even that. So if the family farm is set up as a living trust, it doesn't have to be sold to pay the taxes. LTs cost about $1500 to set up.

 

[Klasanov]

LOL@Bob.