I don't know why there is this constant push for class and race warfare in the U.S. This is not healthy. I am for creating more equality but I am not for taking things by force. There are better ways to create a better society overall than the redistribution of wealth. Even in Soviet Russia and Maoist China, there were the haves and the have nots... and there always will be. We don't need millions executed or starved to death in the process - although Henry Kissinger would argue that we do.. and not just millions dead... 2 billion to be exact..
Taxing the rich even more is not the way to solve the inequality issue. The rich already pay a far greater share since we have a progressive tax. A progressive income tax is actually not a good long term strategy for the US as there is much income inequality. Progressive income taxes work a bit better in countries with higher degrees of income equality. Nonetheless, even an OECD study stated that a progressive tax is actually detrimental to overall economic growth. If you wanted to make the rich pay their 'fair share' you'd actually want to lower taxes or at the very least switch to a fixed rate system.
I know liberals don't really believe in the trickle down effect, but how about the Laffer Curve? Weirdly enough, Clinton was a big fan of it and actually George Bush Sr. was not.
I'm sure you know what the trickle down theory is but perhaps not the Laffer Curve. The laffer curve states that as tax rate increases so does tax revenue - seems pretty basic right and obvious. However, as the tax rate continues to rise there is point on the curve where it then begins to fall. (Imagine an upside down U with the axis being tax rate percent and the other being tax revenue) Meaning that after say 50% tax rate, for example, tax revenue will start to actually decline. This would be the peak on the upside U on the graph - like where it starts to go down after the middle.
The reason why is because instead of paying taxes, many individuals especially the wealthy will start to find other ways to keep their money and prevent the government from taking it. This can include moving to another country, not reporting income, using more loopholes, keeping investments offshore, and eventually not even wanting to work since their money is going to be taken away anyway. An example of this is US companies like Amazon moving abroad to avoid taxes, US citizens moving to Latin America for retirement or at least states with a low property tax, and French actors denouncing their French citizenship. This would be actually fine like in the case of Sweden where taxes are very high but people are very productive and the government actually provides for their citizens. The problem is, millions of Americans are lazy and unproductive.
Laffer noted that tax rates on work and investment fell in the '90s. "Under Clinton we had the biggest reduction in government spending in 30 years, one of the steepest reductions in the capital gains tax, a big cut in the tax on traded goods thanks to NAFTA, and welfare reforms which dramatically increased incentives to work. Of course the economy soared." Also, the whole tech and real estate boom helped the economy grow too - but aside from a few key issues in that presidency at least the macroeconomic tax part was at least managed the right way.
I will be honest with you. I work in sales and I have a rather high income for a young male that's only a few years out of college. I pay a high tax on my salary already because I am single and not married. Although my salary is rather average for an individual with a bachelor's degree, my income is rather large for my age group and education because of commissions. However, I pay nearly 40% tax on my commission because it is considered a luxury tax. I do not make $100k a year but yet I pay a tax on this part of my income as if I made over $400k a year. I can tell you if I was at least taxed at even 28.8% (what it use to be - it rose over 9% in 2015 to 37.4%) I'd be content. I would spend much more money I'd eat out more often (which employs food workers, farmers, ranchers, restaurateurs, distrubutors, truck drivers, etc) going out to the clubs more and spend more money while I am there (which employes bar tenders, hosts/hostesses, club owners, djs, busers, security), and I would buy a nice German car (meaning the government would get a higher amount of tax because naturally i'd spend more on a car). The more money I get to take home, meaning the less is taken out, the more I spend and more of that money goes into the economy. I save a percentage out of my check and invest a percentage - not a dollar amount but rather a percent. Most people manage their portfolios in that manner too - they don't say well I'll put in $20k in Apple, they say well I'll save 15% of my income or I want 10% of my check to go into a 401k. Due to the fact that taxes are so high, I inturn invest less money, am able to save less money for a home, have less of a disposable income while my fixed expenses stay roughly the same regardless of whether I made a lot of commission one month or made $0 in commission.