LoL - why it makes any sense to do this for universities and not billionaires is beyond me, but I'm sure half the country can explain it to me like I'm 5.
LoL - why it makes any sense to do this for universities and not billionaires is beyond me, but I'm sure half the country can explain it to me like I'm 5.
The current admin is openly anti-intellectual.
Edit:
"We need to attack the universities in this country"
"The professors are the enemy"
Specific clip https://www.reddit.com/r/ABoringDystopia/comments/1ichg58/ya...
If you want the full speech it's on YT so if you reply with "context" you should back that up
I'd agree with you that the current admin is anti-intellectual, but this speech is not a smoking gun.
For those who need spoonfed, here is the full speech: https://www.youtube.com/watch?v=0FR65Cifnhw
It's JD Vance's keynote speech at the 2021 National Conservatism conference. The speech, which I've just skimread, is mostly well-worn US conservative complaints about US higher education. He also talks about red-pilling because he's down with the kids, and he adds Jesus sprinkles in case you forgot he's Christian.
The speech is dull but it's bookended with two spicy statements, both of which you mostly quoted. The latter statement is not his words but a quote from Nixon.
Opening statement: «So much of what we want to accomplish, so much of what we want to do in this movement in this country, I think are fundamentally dependent on going through a set of very hostile institutions - specifically the universities which control the knowledge in our society, which control what we call truth and what we call falsity, that provides research that gives credibility to some of the most ridiculous ideas that exist in our country and so I'm excited to close this conference with this particular set of remarks, because I think if any of us want to do the things that we want to do for our country, and for the people who live in it, we have to honestly and aggressively attack the universities in this country.»
Closing statement: «I really want to end this on an inspirational note [...] and the person whose quote I ultimately had to land on was the great prophet and statesman Richard Milhous Nixon [...] there is a season for everything in this country and I think in this movement of National Conservatism, what we need more than inspiration is we need wisdom, and there is a wisdom in what Richard Nixon said approximately 40-50 years ago. He said, and I quote: "the professors are the enemy".»
EDIT: And for the context of the Nixon quote, it comes from a private conversation Nixon had with Henry Kissinger in the Oval Office on December 14, 1972, recordings of which were released in 2008: «Henry remember... we're gonna be around and outlive our enemies. And also, never forget, the press is the enemy. The press is the enemy. The press is the enemy. The establishment is the enemy. The professors are the enemy. The professors are the enemy. Write that on a blackboard 100 times and never forget it.». It's worth noting that Nixon was already keeping an "enemies list": https://en.wikipedia.org/wiki/Nixon%27s_Enemies_List
It doesn't matter what Nixon's context was Vance was quoting him literally by proclaiming it a piece of wisdom.
Posting the entire speech only bolsters my view. For example
"[To accomplish goals].. I think are fundamentally dependent on going through a set of very hostile institutions - specifically the universities..."
I'm confused about your argument. I don't consider it a smoking gun just a concise example of what Vance and MAGA Republicans belive. There's no context confusion, it's on video, and it being dull only shows how comfortable he is exposing insane views.
The spicy soundbites on their own are scary and do suggest the state wants to destroy intellectuals.
The speech they're from doesn't.
The speech defends and praises universities and their role in society. Vance even claims some academics prefer to ignore evidence that refutes their positions, and he's against that; that would be a valid pro-intellectual position if true (but it's completely nebulous and unsourced)
The thesis of his speech was he doesn't like the content of what academics profess and he thinks they ought to teach his political views (and his audience's political views) instead. That's not anti-intellectualism, i.e. "don't trust those book-learning types, look to the common man for answers". This guy still wants ivory towers provided his cronies are in them.
Also it's interesting to see where his quote came from. He clearly picked an on-theme Nixon quote just to appeal to his audience, and he seems to miss the context of the Nixon quote in that Nixon is a paranoid nutter saying it, not coming from a rational place like Vance thought he just did.
>The speech defends and praises universities and their role in society
Which part ?
Current universities are openly anti intellectual.
What evidence do you have of this?
What evidence does the parent comment provide?
Just edited my comment. How many quotes do you need? I can supply many
[flagged]
>You are simply defining intellectual as “whatever universities do and say
Definition of anti-intellectual
"a person who scorns intellectuals and their views and methods" from oxford
Intellectual
"of or relating to the intellect or its use", "given to study, reflection, and speculation", and ": engaged in activity requiring the creative use of the intellect" from MW.
I didn't define anything. If I said the administration was anti-education would that be better?
> the University must adopt and implement merit-based hiring policies, and cease all preferences based on race, color, religion, sex, or national origin throughout its hiring, promotion, compensation, and related practices among faculty, staff, and leadership.
> the University must adopt and implement merit-based admissions policies and cease all preferences based on race, color, national origin, or proxies thereof, throughout its undergraduate program, each graduate program individually, each of its professional schools, and other programs.
In what way is hiring faculty and and admitting students based on merit instead of their identity anti-education? Is your position that you get a better education from a professor who was hired because of their race instead of the quality of their scholarly work?
>In what way is hiring faculty and and admitting students based on merit instead of their identity anti-education?
It's not. Calling universities and professors the enemy is. The government taking away funding because you want international students to adhere to an ideology is wrong.
>is your position that you get a better education from a professor who was hired because of their race instead of the quality of their scholarly work?
How do you rank the quality of scholarly work?
You ask other scholars in the field to read it and give their opinion on it. It’s this thing called “peer review” that is kind of the basis of all modern academic inquiry.
In the case of hiring, typically a committee of other professors in the department would evaluate candidates, not a bunch of DEI bureaucrats. They would read what the candidates have published and see if the arguments they make are sound, and look at things like # of citations that indicate how prominent the work is in the field.
I don’t know if you’ve ever met any academics, but I promise you they have no problems forming opinions about the quality of work of other people in their field.
Could different scholars from different universities rank people differently?
Sure. Research by definition deals with areas that are not settled, so different people can have different theories, and they might disregard scholars who don't like their preferred theory. On the other hand, some academics welcome debate and differing viewpoints more than most people.
Like, if you were a physics professor and you were applying to a department where everyone was a string theorist, and your position was that string theory is a bunch of bullshit, you might not get that job. Or you might, if your work is otherwise solid, you never know.
But that's a disagreement about physics, which is a perfectly reasonable thing to evaluate a physics professor on. It's not about how enthusiastically they endorse some ideological dogma that has nothing to do with physics.
If people can be ranked differently as candidates by different universities and the people at them how can you ever be sure that a person who got the job because of DEI was the worse candidate?
There are objective measures like quantity of publications, quality of the journals published in, # of citations, awards won, books published, things like that. Every academic could tell you the top 5 journals in their field that are the most competitive to get published in and are the most respected, someone with a lot of publications in those journals would be objectively better than someone with no publications or with publications in crappy no-name journals that claim they are "peer-reviewed" but basically publish anything that gets submitted.
We're not talking about roughly equal candidates with similar qualifications and one getting the edge because of race. I'm telling you there are cases where PhD candidates with zero publications, people who have not even finished and defended their dissertation yet, are hired for tenure-track positions over other candidates who have had their degree for several years, published in top journals, won highly competitive fellowships, etc, because universities want someone of a particular race. It's not subtle.
You may not be able to say that one candidate is the unequivocal best when there are many qualified candidates, but you can definitely say that a particular candidate is unqualified or not even close to other candidates when, for example, they have not published at all.
>There are objective measures like quantity of publications, quality of the journals published in, # of citations, awards won, books published, things like that
None of these are objective measures of quality.
1. The more papers you write the more likely you'll be published more. This is connected to time and desire.
2. Judging yhe quality of a journal is subjective therefore can't be used as an objective measurement for something else
3. If you write a paper that more people have access to, is about a more popular subject, is the only paper for a subject, or is published in more popular journals it would increase your citations outside of the paper quality.
4. Awards are a subjective judgement
Of course all of these increase the probability of quality but it's not a guarantee.
> for example, they have not published at all.
I don't think anyone going for a position as a professor hasn't published since most PHds require it. This point probably adds more weight but I think it would be rare between candidates for job.
Reading more carefully, you're just making nonsensical statements that have no connection to reality. Yes, many of these absolutely are objective.
> The more papers you write the more likely you'll be published more. This is connected to time and desire.
Yes, someone who writes more and spends more time doing research and has more desire to do research is objectively better at research than someone who produces less. There is a possibility that one person writes lots of low quality papers and another person writes a few high quality papers, but in asserting this you are admitting that there is some objective measure of the quality of a paper (which there is). Since the reviewers would be reading the papers, they could also objectively assess the quality of the papers too.
> 2. Judging yhe quality of a journal is subjective therefore can't be used as an objective measurement for something else
No, the quality of the journal is not subjective. If journal A publishes anything they are sent without review and journal B rigorously reviews everything by sending it to other experts in the field, then journal B is objectively higher quality than journal A.
> If you write a paper that more people have access to, is about a more popular subject, is the only paper for a subject, or is published in more popular journals it would increase your citations outside of the paper quality.
If you write the only published paper on a subject, then you are objectively the world's leading expert on that subject. If the university wants someone who knows that subject, the only person in the world who has published on it is objectively the best choice.
Part of a professor's job might be to communicate about their research and bring it to a wider audience, and convince e.g. grant committees that it is important and deserves funding. Someone savvy enough to get published in popular journal is objectively more qualified to do this than someone who hasn't been able to accomplish that.
> Awards are a subjective judgement
The awards can be subjective, but whether you have won an award or not is an objective fact. If the job involves doing the kinds of thing that impress the people who give the award, then someone who has achieved that is objectively better than someone who has not.
Sure, it’s not infallible, but having other experts in the field read and judge a candidate’s work is at least an honest attempt at assessing merit.
Whereas going by who can write the most enthusiastic essay about diversity, as judged by the blue-haired gender studies major in the diversity center, is a system that will only select for rabid ideologues and disingenuous bullshitters.
> blue-haired
Why does this matter?
What does gender studies have to do with this situation or DEI ?
> is a system that will only select for rabid ideologues and disingenuous bullshitters.
Why?
> Why?
Pretend you are an investment banker. You've spent the last 10 years living and breathing investment banking. You've worked 100 hour weeks. You can point to a long list of successful deals you've done. You have glowing references from every client and colleague that has ever worked with you.
Now, you're applying for a job at a major investment bank, but before your resume is reviewed by any of the investment bankers, you have to write an essay about how much you love baseball. This essay will be reviewed by a panel of baseball superfans. They will judge it on how much you know about baseball and how much you love baseball. If they feel you know enough about baseball and you sufficiently express your love for it, they will then pass your resume on to be reviewed by the investment bankers.
Now, maybe you like baseball, maybe you don't. Maybe you have no particular strong feelings about it. Mostly, you didn't have time to think much about baseball because you have spent your time obsessed with investment banking.
Do you think this is a good system to hire investment bankers? If someone said "hey, we should hire investment bankers based on their track record in investment banking and not how much they love baseball or if they are baseball players", would you call them "anti-investment banking"?
>I'm telling you there are cases where PhD candidates with zero publications, people who have not even finished and defended their dissertation yet, are hired for tenure-track positions over other candidates who have had their degree for several years, published in top journals, won highly competitive fellowships, etc, because universities want someone of a particular race. It's not subtle.
Give me examples then because how could you know this?
I've worked in academic publishing for a long while, and I can tell you from experience that:
- "quantity of publications" is a problem and directly leads to bad science, so is on aggregate a measure of anti-quality
- "quality of the journals published in" is all in the mind; prestigious journals with high impact factor have been repeatedly found not to have the best research. The rigour of the editing process is more important, but few researchers know that, and importantly they are heavily incentivised by funders to go for high impact factor, completely muddying the waters of who's a good researcher by that metric.
- number of citations would be a better measure, but unfortunately is directly linked to impact factor, in practice and in perception.
- awards won, books published - too niche and random to matter much.
- "every academic could tell you the top 5 journals in their field" haha, no, you'd be as surprised as I was when doing that research.
Academic publishers have been considering the measuring problem for decades, and no one has found a solution yet.
There is no good measure of the quality of a paper until many years after publication. It's easy to identify some true positives (high impact, no retraction), it's quasi-impossible by definition to identify false negatives (unfairly ignored papers), and most importantly this emphasis on prestige research is terribly harmful to Science. Science needs researchers who are happy to replicate studies, people who publish disappointing results, and people who study otherwise unglamorous topics, otherwise Science fails.
TLDR: measuring how 'good' a researcher is by their prestige is extremely destructive to Science. You can't do that.
I'm not saying it's only prestige, but to a first approximation, a researcher who has an article published in Nature is highly likely to be better than one who has only published in no-name garbage journal that publishes whatever they are sent. Of course, nothing is certain, but we're talking about probabilities here.
And, as I'm saying, prestige, or probable future prestige, isn't a good proxy for a researcher's value or future value, even if it could be fairly guessed, which it can't. Nature is exhibit A, B and C, as it's the most prestigious journal, but not the most rigorous in any field, and its very existence damages Science by overvaluing the research it publishes, reducing the impact of better journals and the research they publish, and wasting the time, quality of life, and quality of research of scientists who feel like they must do anything they have to to publish in it, or are pressured by funders and/or academic institutions to do so.
But you are talking certainty when you claim DEI hires means that it's possible the lesser person is hired. If you have no objective system to measure merit then it's possible to ever know this
How does anyone know anything? Why even vet candidates at all? Let’s just assign professorships completely randomly then. We’ll have high school dropouts who can’t explain the quadratic formula teach differential equations at Harvard.
I’m sure they would do just as good of a job. Because nobody could ever possibly objectively tell whether someone with a PhD in math is going to be better at teaching and researching math than a high school dropout, right?
Just want to note that I didn't downvote (I can't yet) or flag your comments. I don't think your comments should be flagged either.
Could you perhaps spell out your definition of anti-intellectual for us then?
> Current universities are openly anti intellectual.
The administration is saying “hire and promote faculty and admit students based on scholarly merit, not ideology and activism”. Universities are saying “no, we want to keep doing the ideology stuff”. That is anti-intellectual.
The people in the administration were not admitted to their universities based on merits, they paid to get in and they paid for their degree. This is especially true for POTUS who holds an entirely fake degree bought and paid for by his father.
And you’re taking words of this administration at face value, correct?
Unless you have evidence Vance is lying why wouldn't I?
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What words? What university? Who at the university?
Edit: My comment was that the admin is anti intellectual and I provided quotes from JD Vance on all universities and professors.
Gosh, I don't know. If only there were a link to a statement by a university somewhere here.
But the Trump administration wants to punish students who don't conform to pro Israel views/ideology.
The administration wants to revoke visas for non-US citizens who come here under the pretense of education and then instead advocate for terrorist groups that are hostile to the interests of the US and its allies. No, that isn't the same. Why is the US government expected to fund people who want to destroy the US government? Should you be required to pay people who want to kill you?
>The administration wants to revoke visas for non-US citizens who come here under the pretense of education and instead advocate for terrorist groups.
1. You can get an education while advocating for causes
2. The letter doesn't only say advocating for a terrorist group.
From the gov demand letter:
"International Admissions Reform. By August 2025, the University must reform its recruitment, screening, and admissions of international students to prevent admitting students hostile to the American values and institutions inscribed in the U.S. Constitution and Declaration of Independence, including students supportive of terrorism or anti-Semitism."
>Why is the US government expected to fund people who want to destroy the US government?
1. They aren't, Harvard does
2. Federal grants aren't targeted to specific students so revoking them isn't a targetted punishment
3. Harvard can still operate without these grants, including bringing in international students who the current admin might disagree with.
4. The US government gives money to people who want to destroy it all the time. Welfare, social security, etc is given to anti-gov US citizens with no restrictions based on those views.
5. Although only proposed Trump wanted to set up a fund for January 6th protestors who he pardoned. Some of whom attacked the US capital to disrupt a Democratic election process.
>Should you be required to pay people who want to kill you?
No. How is that related to this? You just overly generalized the entire situation in order to produce a question where I'd mostly likely to say "no" as a argument manipulation tactic.
> 1. They aren't, Harvard does
> 2. Federal grants aren't targeted to specific students so revoking them isn't a targetted punishment
> 3. Harvard can still operate without these grants, including bringing in international students who the current admin might disagree with.
Harvard funds them with the money it gets from grants. If Harvard wants to fund activist students with their own money out of their endowment, nobody is stopping them from doing that.
No, they can't unilaterally import foreign students though, the government has to grant them a visa to come here, and it really doesn't seem prudent to grant visas to people who hate our country and everything it stands for. If they believe the US is so evil and awful, they should be quite relieved that they won't need to come here. Maybe Harvard can open a satellite campus in Gaza if they really feel that these are the best students who are most deserving of a Harvard education.
>Harvard funds them with the money it gets from grants.
The grants fund students regardless of views. Yes they can use their endowment (I think) it's quite massive but the point is the government attacking universities for what a small amount of students say which is wrong.
It's also quite hypocritical considering views on free speech and "big government"
"Shutting down free speech will destroy our civilization." - JD Vance
>it really doesn't seem prudent to grant visas to people who hate our country and everything it stands for.
Why? In the case of attacking Israel that's not even our country? What if they hate the current government?
What is "our country" to you because most probably hate the government, a very common attitude for many inside the country.
If they hate our values of freedom then punishing them only says that those freedoms aren't that dear to us because we're willing to compromise.
The rest of your comment is Facebook level of like "If you don't like it leave". I do think your other comments are professional so I hope we can move back
>they should be quite relieved that they won't need to come here
> If they hate our values of freedom then punishing them only says that those freedoms aren't that dear to us because we're willing to compromise.
How is it a punishment to send someone away from a place they hate?
For all the people chanting “from the river to the sea” and then crying about their free speech when their visas are revoked, where is their passion for free speech when someone draws a cartoon of Mohammad?
These are not people who care about the ideals of freedom. They only want to use our indulgence as a wedge to promulgate their own, much less free ideology.
Or to put things in maybe more HN-friendly terms - suppose you have a public facing service that you intend to be very liberal and accepting of any inputs. Does that mean you need to allow SQL injection attacks? Cross-site scripting? Spam? Not all actors are acting in good faith. Some are deliberately trying to harm you.
>How is it a punishment to send someone away from a place they hate
Name a student who was deported that hated America and provide evidence.
They are the ones asking to live in a different country. The burden is on them to demonstrate why they should be allowed to live here, not on us to prove why they shouldn’t.
Let’s say I want to come live in your house. Do you need to prove to me why I shouldn’t be allowed to do that, or do I need to prove to you why I should? If I make speeches and write articles about how you’re an evil person and we should burn your house down, does that make you think it’s a good idea for me to live with you?
No, that's a lie and you know it's a lie. The administration specifically demanded that Harvard must submit to viewpoint diversity audits, hiring faculty and admitting students as necessary to make sure that every department has a balance of viewpoints the government finds acceptable.
So they need to have a department to ensure a diversity of views are included?
No, that wasn't sufficient. The government specifically demanded that Harvard must commission a government-approved external party to audit viewpoint diversity, and must promise in advance to follow its recommendations, for each of the next three years.
So a government run DEI department? You're aren't the original person but that's my gotcha
No, it's not a lie that the administration said universities should hire and admit students based on merit. The administration's letter is linked from the university's statement. You can go read it. It's the very first two points.
It's true they also said they want viewpoint diversity quotas and audits. I agree that goes too far. I think they would probably give that up if the university pushed back. This is what Trump does every time - make outlandish demands so you have something to give up in negotiation. He even wrote an entire book telling you exactly that's what he does, yet somehow the "intellectual elite" cannot wrap their heads around a very simple negotiating tactic. Every plumber, electrician, and carpenter that ever worked with Trump figured this out decades ago.
> somehow the "intellectual elite" cannot wrap their heads around a very simple negotiating tactic
This is extremely disingenous. Throughout this thread you've been arguing on the basis that hiring people simply to fit a political viewoint is wrong, but when it's pointed out that that's exactly what your team wants as well you fall back to name-calling.
What they want is to hire people based on merit, first and foremost. They say that explicitly several times.
That's not the only demand in the letter.
>This is what Trump does every time - make outlandish demands so you have something to give up in negotiation
Harvard rejected the demands and Trump pulled funding. What negotiation happened?
Also, if everyone knows you're just demanding more than you'd accept what's the value of the negotiation tactic? Everyone would just reject demands initially knowing this
Yes, you reject the first offer and make a counter offer. That is how negotiating works. You ask for more than you expect to get to find out what the limit is that the other party will go up to. How else would you find the limit? You don't know what the other party is thinking or what all of their priorities are. You can't just magically intuit it a priori.
If that's how negotiating works, and Trump cancelled the funding instead of delivering a counteroffer, shouldn't we conclude that Trump is not in fact negotiating? It seems like your vision of negotiation is that Trump does whatever he wants and everyone else politely begs him to be gracious in victory.
Trump made the initial offer. It was up to the university to make a counteroffer and try to meet in the middle. Instead they flatly refused everything. When one party rejects an offer in a negotiation, the other party often walks away. That’s what Trump did. If you aren’t willing and able to walk away, you’re begging, not negotiating.
>Instead they flatly refused everything
No, they had issues with some of the demands and wanted to open a dialog.
Harvard's response says they changed policies to protect Jewish students, made other changes to related to the protests, etc.
It also states
"It is unfortunate, then, that your letter disregards Harvard’s efforts and instead presents demands that, in contravention of the First Amendment, invade university freedoms ..."
#----------------------------- Finally they said:
"Harvard remains open to dialogue about what the university has done, and is planning to do, to improve the experience of every member of its community. But Harvard is not prepared to agree to demands that go beyond the lawful authority of this or any administration. "
I find I'm willing and able to walk away from this discussion. I'll keep your strategic advice in mind the next time a Trump supporter tries to explain why I should not shun them or organize a boycott of their business.
What he explained in his book is that he's an evil, dishonest person, who routinely lies and harms people in negotiations in order to get his way. I agree that being evil and dishonest is often quite effective - if you came up to me with a knife and an outlandish demand that I should give you my wallet, I'd probably concede the negotiation. But I don't at all understand the idea that I have to respect this as some kind of clever negotiating strategy. The innocent researchers whose grants he's cancelled are real people suffering real harm, and they don't become transmuted to a mere negotiating tactic just because Donald Trump doesn't care about them.
If a dishonest person tells you he's dishonest, doesn't that mean he's actually honest?
No because a person isn't "honest" because they make one honest statement.
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>no, we want to keep doing the ideology stuff
How is this anti-intellectual?
Applicants for faculty positions are required to submit "diversity statements" expressing their commitment to diversity, equity, and inclusion. This statement is evaluated before any of their other qualifications, like their standing in the field, number and quality of publications, teaching experience, you know, the intellectual quality of their work. If they are judged to be insufficiently committed to the DEI ideology, then their application is rejected without further review, regardless of how qualified they might otherwise be. That is anti-intellectual.
That is before we even get into the explicitly racist hiring and admissions policies.
>If they are judged to be insufficiently committed to the DEI ideology, then their application is rejected without further review,
Evidence
> growing number of states and schools have also begun eliminating requirements that job applicants furnish “diversity statements” — written commitments to particular ideas about diversity and how to achieve it that, at some institutions, have functionally served as litmus tests in hiring.
https://archive.is/UeZ2A#selection-5289.442-5297.27
> Chavous and her colleagues did not collect demographic information from applicants. Instead, they were asked to submit statements addressing how they would advance D.E.I. goals, whether through research into “race, gender, diversity, equity and inclusion,” “significant academic achievement in the face of barriers” or “commitment to allyhood through learning about structural inequities.” Departments were invited to nominate candidates from an application pool created by the diversity center, which then oversaw further vetting.
https://archive.is/i6Gv9#selection-1183.358-1187.413
Ohio State Reports: DEI Litmus Test
https://www.nas.org/blogs/article/ohio-state-reports-dei-lit...
Thank you for providing a source.
I don't agree with Ohio's diversity statements being used as part of the selection criteria. It's wrong.
What about every other university though? JD Vance's statement called universities the enemy. Most universities aren't connected to each other, they aren't a single organization and aren't responsible for what each does.
1. If only a few were using diversity statements as a part of the hiring process, which is wrong, what's the justification in calling all of them the enemy?
2. What about the professors? Most aren't responsible for setting hiring practices. Why are they the enemy?
> That is before we even get into the explicitly racist hiring and admissions policies. [ from your original comment ]
Same as the above for this. A University is a large insinuation of students, teachers, researchers, and various employees. Harvard employs 19k people and has 23k students.
#----------------
My opinion is that Vance is attacking universities not because he cares about merit based hiring or the quality of students but for selfish political reasons.
Why I think this:
1. As previously stated not all universities are doing what you claimed. Ohio for one, and the first link says "some" but there are thousands.
2. There are private schools that receive public money but discriminate against LGBQT [1] However nothing has been said or done about this by Trump in the past or now. These religious schools are more conservative and attacks would likely anger the base.
3. Republicans perform better with non-college educated voters [2] 2024 election:
No college 36% D , 62% R
Some college or 2yr degree: ~44% D, ~53% R
4-year degree: 53% D, 45% R
Graduate school+: 59% D , 38% R
Therefore reducing the number of people who go to higher education could benefit Republicans in elections.
[1] https://www.bloomberg.com/news/newsletters/2022-09-01/when-p... [2] https://www.nbcnews.com/politics/2024-elections/exit-polls
> 1. As previously stated not all universities are doing what you claimed. Ohio for one, and the first link says "some" but there are thousands.
Not all, but most. It may have decreased as some universities have started to abandon it now that it is falling out of fashion, but it was a large percentage, I'd estimate 90% offhand, but it's not like there's a lot of sources on this. It is a movement led by an aggressive and militant minority who silences and drives out anyone who disagrees. Most professors, who just want to do their research on 19th century French poetry or the mating habits of dung beetles or whatever they care about just shut up and try to keep their heads down so they don't get denied tenure or have students protesting at their office because they said the wrong pronoun. If you know people in academia and they trust you they will tell you off the record that it is nearly universal and so, so much worse than what is publicly reported. Sorry, I can't provide sources for this. You can trust me or not, but I know what I've seen and what people have told me.
> There are private schools that receive public money but discriminate against LGBQT [1] However nothing has been said or done about this by Trump in the past or now. These religious schools are more conservative and attacks would likely anger the base.
There is a religious freedom issue, because religion is also a protected class. I don't know, religious schools are not that many and they are not a big factor in academia. If you really care about that religion, then you go there, if not there are lots of other places. I don't know why an LGBQT person would want to force their way into going to a school where everyone thinks they're sinful and destined for hell. Seems like masochism to me.
> My opinion is that Vance is attacking universities not because he cares about merit based hiring or the quality of students but for selfish political reasons.
Well, neither of us can read his mind, but he benefited from a system that espoused meritocracy and used it to improve his life from growing up very poor to becoming vice president of the United States. I think it's reasonable that he would want to preserve that so other people could also have that opportunity and not get denied because they were the wrong race.
>Not all, but most.
>I'd estimate 90% offhand, but it's not like there's a lot of sources on this.
What is your estimate based on and what is your basis for claiming "most"?
It would be pretty bad to hire someone who doesn't respect their colleagues, without even knowing them.
Yes, universities have hired a lot of DEI ideologues who don’t respect their colleagues without even knowing them and it is indeed very bad.
Well, if that's the case one of the parties didn't meet the inclusivity criteria, seemingly the DEI ideologues.
>Yes, universities have hired a lot of DEI ideologues who don’t respect their colleagues
How do you know this happens?
The administration defines what ideology is and given the current administration claims it’s based on merit and given the nonsense they do economically, scientifically and militarily they are the ideological activists. Not to mention that they are clearly hired based on gender and skin color.
RFK jr., really?
if you hate universities it makes obvious sense
[flagged]
Do you cut off your head when you have a headache?
You think this is a good analogy?
Pretty good metaphor for the current happenings, yes.
Why not?
Chronic migraines do lead to suicide in extreme cases.
Do you consider that a cure for migraines or is it just a strawman?
I’m not half the country, but I can explain it to you. Billionaires already pay tax on investment income. Universities are exempt but now the proposal is that they pay as well, just like individuals (including billionaires) and other profit-making groups.
… or churches
Politics of resentment where elite colleges and universities are unjust scams and billionaires are just the pinnacle of self actualization.
Why do you expect a billionaire to steal from billionaires? a portion of non-essential stealing comes from respct, and of course these billionaires are all a part of the same club.
The other lens is simple as well: big fish don't go after the other big fish. That just ends in two hurt fish and no food. Trump thought he was going after a small fry and underestimated the response. just because Columbia folded doesn't mean all universities will.
lens #3: this clip explains it well: https://www.youtube.com/watch?v=VLbWnJGlyMU
He's a bully but if everyone realizes they outnumber (and outmatch him) he loses his power).
Doesn't this tax only apply to "net investment income"/realized gains? Billionaires technically already have to pay it at a higher rate. And well they generally do? I mean when they personally actually sell stock and or receive dividends and interest.
Most of the wealth being in stock is really tricky. You can't really tax stock ownership, but at the same time stock can be leveraged against business deals (Musk for example bought Twitter with largely stock, without having to sell it first and therefore being subject to tax), and you can take out loans with stock as collateral.
It's not that tricky. All you have to do is make it a taxable event to collateralize stock.
Should we similarly tax collateralizing real estate as in home equity loans?
Sure, if you exclude primary residence. We aren't trying to fuck with the middle class, just the uberwealthy. I'd be fine with only taxing collateralized stock on people with over $20M in net worth too. We just don't need to provide tax breaks to the rich to make them more rich.
Now, rigorously define "net worth".
It's such an odd argument - the wealthy always seem to know what their net worth is. We could just make them declare it. If they lie, straight to jail.
Do they? I think exactly the opposite is true - if you ask any sufficiently wealthy person, they’d need a team of people working for a bit to arrive at a very hazy net worth number. Private stock is extremely illiquid and doesn’t usually have a good mark to market, ditto most artwork. My impression is that even most public stock doesn’t generally have the depth of liquidity to absorb a founder selling any significant fraction in a short timeframe without cratering in value.
> If they lie, straight to jail.
How do we know whether they lie without a solid definition of net worth?
I'm not defending billionaires and I believe they should be heavily taxed, and huge inheritances should be outlawed, but what's Elon Musk's net worth, for example? He surely doesn't have $369 billion in cash. Can we tax him based on his Tesla shares? What happens if Tesla stock goes down by 99% next year? It's tricky.
> How do we know whether they lie without a solid definition of net worth?
They get to tell us what they are worth. Generally speaking, if you want to lie about your net worth you are choosing between tax fraud and insurance fraud. There are some areas that are tricky, like pre-market startups, but we have things like 409A valuations that help with that. Penalties should have no statute of limitations - if you lie about it, you get to look over your shoulder forever. It's not perfect, but as you have clearly recognized, there is no perfect system that allows for a reasonable degree of freedom.
> Can we tax him based on his Tesla shares? What happens if Tesla stock goes down by 99% next year?
Not really tricky! He gets taxed on the value of his shares in year 1 and he gets taxed on the value of the shares in year 2. If the value goes down 99%, you pay way less tax (or none if he's no longer wealthy enough to qualify). He can sell his shares to pay it, and I honestly do not care if he is not liquid enough to do that - that's a situation he put himself into. No he doesn't get a tax break on the loss - the rich have a sense of entitlement that their wealth belongs to them free of charge, and I think they should have to pay maintenance. Without public utilities (roads, electricity, air and sea traffic control, etc) and social stability, most of these billionaires would lose their wealth to warlords very quickly.
> He gets taxed on the value of his shares in year 1 and he gets taxed on the value of the shares in year 2.
That doesn't make any sense. If I have $8B worth of shares and I have $2B in cash, and if the wealth tax is 20% I will have to pay all my cash this year. If my shares goes down to zero next year I'm broke. I couldn't just sell $2B worth of shares in the first year either because that would have affected the value of the shares. This is not how taxes should work.
Everyone agrees on income tax or capital gains tax because they are both cash, and the tax is also in the same currency. If we can find a way to tax wealth in the same "currency" (for example 20% of your share portfolio, plus 20% of your cash) then it might work. Obviously the state may not always be able to use shares to fund infrastructure, and cashing out those shares would diminish the value. Also it's still hard to do that for, say, real estate investments.
What doesn't make sense? He'd owe $1.6B the first year, and then he'd be shit out of luck because he drove the stock to 0. Not my problem. And you should stop putting yourself in his shoes - you will never be a billionaire, and you probably won't be a mega-millionaire either. Start worrying about your own situation.
In any case, the whole thread about "net worth" is really besides my original point, which is that collateralizing stock for loans should be a taxable event. The only reason we got into net worth was because I said I'd only apply it to high net worth individuals, since they have almost exclusively benefitted from the economy over the last 10-20 years. This is also super achievable because to get the bank to loan you money, you have to declare the value of the assets and the bank has to agree with the valuation - super easy to determine tax on that number.
I don't feel that strongly about it if he is just sitting on the assets, but if he's leveraging them to buy Twitter, OpenAI or to donate money toward overthrowing the Democratic order, then yes, he should absolutely pay taxes for the privilege.
I'm not worrying about billionaires. I'm discussing about hypothetical ways we can tax them. They own the government, and obviously your idea of potentially making them homeless will be immediately rejected and we will be in this status quo forever.
> collateralizing stock for loans should be a taxable event
I fully agree with this.
> They own the government, and obviously your idea of potentially making them homeless will be immediately rejected and we will be in this status quo forever.
Disagree. We've been negotiating from the middle. We got the New Deal because the alternative for the wealthy was facing a socialist revolution.
I'm all for threatining them with a socialist revolution if possible. However, I'm afraid they are better prepared this time. In today's world a (metaphorical) guerilla war that targets one small win at a time might be more prudent. The wealthy is not necessarily smart. Not all will see it coming.
> Generally speaking, if you want to lie about your net worth you are choosing between tax fraud and insurance fraud.
Funnily enough there is (was?) legal activity about exactly this with our current POTUS.
Real estate assets when being accounted for tax purposes: "Worth: $x"
Same real estate assets when being accounted for loan collateral: "Worth: $10x".
But of course like most legal activity against POTUS, it's just been "abandoned".
When the amount of equity pulled out from the loan exceeds the cost basis, why not?
How? That makes little sense to me from an implementation standpoint.
When I bought my home I had to sell $XXX,XXX of stock to make the down payment. If Jeff Bezos wants to buy the same house, he would use a line of credit from the bank, collateralized by his Amazon shares (or whatever source of wealth) and pay with that. I paid 15% in long-term capital gains, he pays 0%. Under my plan, he would pay 15% LTCG for collateralizing his stock,. If I had to pay it, then it's entirely fair and reasonable that we expect him to pay his fair share too.
You could have done the same thing with a margin-enabled brokerage account, e.g. Interactive Brokers or Fidelity.
It's not particularly hard. Just have enough collateral to not get margin called. And, like the margin interest rate better than the tax hit. Shop around for rates. Notice, you don't have to pay the entire down payment this way.
If you have amassed 6 figures of stock and are buying a house, you're qualified to educate yourself on these topics. It's usually worth reading up anytime you incur that sizable a taxable event.
I am not saying this is a great idea, BTW. Just, it's an idea within many people's reach.
If it's a bad idea, it's a bad faith argument - why would you suggest it? The tax laws shouldn't favor the gross accumulation of wealth, nor the starvation of the treasury, so the laws need to change to force the rich to pay their fair share.
> If it's a bad idea, it's a bad faith argument
I believe the GP is just cautioning rando HN readers that they should not rush out and make their down payment in the manner described, as opposed to liquidating some of their stock options for "real cash" like the GGP had to do.
They are just explaining a reasonable method that the (above) average HN reader could use to be in the same situation as Bezos of having a 0% tax on their down payment.
In the US, there's a pretty massive exemption (well, deferral) for capital gains tax on the sale of a primary residence, so once you have one home to work with, the down payment is (kind of?) tax-free anyway.
They definitely shouldn't. It's absurd to suggest that because a middle-class homebuyer can get a margin loan through iBroker means that we should let the richest people in history dodge taxes in this way. If no one would actually do that, then it really doesn't matter that they technically can. The obvious solution is to take away the privilege from the wealthy and make them abide the same rules as the rest of us.
> They definitely shouldn't.
Never give absolute financial advice to anyone who's situation you don't fully understand.
Nah, I’m pretty comfortable that 99.99999% of people should not take a margin loan to buy a house. Close enough for me.
A fair number of people do use margin for down payments until they can sell assets to cover the margin.
It's not uncommon when people buy deals while traveling or in hot markets.
See also Mr Money Mustache's articles on this topic. He assuredly is not Bezosesque.
Here's the Mr. Money Mustache article I referenced: https://www.mrmoneymustache.com/2021/01/29/margin-loan-ibkr-...
Another very rational reason for such a margin loan for a home down payment is if the stock you wanted to sell hadn't been held for a year and therefore its sale would not yet qualify for long-term capital gains rates.
You might choose to pay margin interest for up to a year so that the stock sales become taxed at the much lower long-term capital gains rates instead of like income.
That might make sense for someone in the 24% federal bracket which ends at just under $200K of annual income, depending upon how much longer one needs to hold the position to achieve the more favorable taxation. Certainly far below the yacht-owning bracket.
Bezos gets a much better margin rate than you or I would ever get on IBKR. And IBKR doesn't margin call, they straight up auto liquidate. Bezos's lender would never do that to him.
And withdrawals from margin accounts should cause taxable events too. Honestly it is up to the industry to justify and propose a workable tax scheme that makes margin accounts feasible. Withdrawals triggering taxable events seems fair to me, though.
If I get something of worth, non-related to the stock/ownership, for the current value on my stock/ownership, I should pay taxes on that amount. I am using the stocks value to gain something. If I take out a loan for businesses needs, that is in the interest of the thing I own. If I take out a loan to buy a separate thing, I have leveraged the current value and have therefor realized the current value and should pay accordingly.
Lenders would have to report loan origination for secured loans where some specific asset classes are acting as the collateral.
Why does it matter? It eventually gets taxed through estate tax and at a higher rate than income. This obsession with taxing them _now_ only makes sense if the point is to punish the the rich.
Agreed. For the revenue tax activists want from billionaires, it would necessitate a wealth tax, which I believe is unconstitutional. The non-profit tax exemption fight is about "income taxes" which billionaires already have to pay (but avoid). So it is an apples-to-oranges comparison.
> it would necessitate a wealth tax, which I believe is unconstitutional
I take it you haven't heard of property taxes.
I'm not a lawyer but I do not consider a property tax to be the same thing as a wealth tax.
If I own a house or condominium in San Francisco, at a fundamental level I do not own the land or space the residence is sitting on. "Ownership" is basically a lease of the parcel from the city. The house structure is an improvement on leased land; this ties the property tax calculation to the value of the structure. The property tax is the rent on the land/space. I believe this is the constitutional justification for property taxes (no opposition from me).
> If I own a house or condominium in San Francisco, at a fundamental level I do not own the land or space the residence is sitting on. "Ownership" is basically a lease of the parcel from the city.
It's interesting to me that medieval European peasants "renting" the land they farmed had much stronger ownership rights than Americans who "own" land do today.
> I believe this is the constitutional justification for property taxes
It isn't. The constitutional justification for property taxes is that they're assessed by the states, not by the federal government.
The federal government is free to assess property taxes too, except that it must apportion them between the states: https://constitution.congress.gov/browse/essay/artI-S9-C4-1/...
> An 1861 federal tax on real property illustrates how the rule of apportionment operates. Congress enacted a direct tax of $20 million. After apportioning the direct tax among the states, territories, and the District of Columbia, the State of New York was liable for the largest portion of the tax [...]
What this meant was that the federal government delegated tax quotas to the states and the states were responsible for collecting them as they saw fit.
Recommend James C. Scott's "Seeing like a State" to learn more about the evolution of property valuation and rights. The systems of land rights in up to the 1500s-1800s were quite complex. The modern state imposed a uniform system of free-hold tenure which shifted the complexity to the downstream consequences.
https://www.amazon.com/Seeing-like-State-Certain-Condition/d...
I was making a comment about radical change in the meaning of "renting" and "ownership". Did you have anything specific in mind?
(I've read the book; it didn't strike me as related to this topic.)
The concept of freehold tenure is pretty central to the book. Not sure you could get any more on-point for the general reader looking for a book recommendation.
But since you ask: the peasant's rights to land were exquisitely bespoke. No tax collector could figure out how much one family owed versus another in another county. The rules in one prefecture of one county may have been completely unresolvable with the rules of a county a hundred miles north. Everything was negotiated family to family over generations, with rights in one place having no corollary whatsoever with the rights in another area, making the tax man's duty a fool's errand.
So, I don't your first statement "European peasants "renting" the land they farmed had much stronger ownership rights than Americans who "own" land do today." is really meaningful. Because no generalization can be made about the rights of a European peasant. That problem is the whole reason for the systems of freehold tenure that prevail today: making the territory "seeable" by the state.
You're talking about something entirely different. The typical case for the renting medieval peasant is that the rent on a given plot of land is set by custom, the nominal amount has been the same for centuries, and it can never be changed for any reason. No administrative task could ever be simpler than collecting the rent.
Landowners responded to that by adjusting the size of the units in which land rents were due, which is why a major demand of peasant movements was for standardized units.
The fact that rents were absolutely nonnegotiable led to other developments, such as the lord being so indifferent as to exactly who was renting from him that the renter was free to leave his status to whoever he chose in his will.
> amount has been the same for centuries, and it can never be changed for any reason
That's only true in a narrow and a relatively obtuse way. For starters that varied to a huge degree between regions and types of contracts.
e.g. in England freeholds were indeterminate and or more or less worked the way you are saying.
However most peasants didn't have those, before the plague the overwhelming majority of peasants were villeins (i.e. serfs), inheritance was customary and lords were not legally obliged to pass it to the serf's descendants (also there were all kinds of fees, fines and stuff besides the fact that they weren't legally free and there was no legal system to protect your rights).
Leaseholds and copyholds became much more common due to labour shortages after the plague. leaseholds were not inherited and market price based. Copyholds were inherited and rents customary fixes (but again lords could and would impose all kinds of arbitrary fees to get their cut).
Then you had the enclosures starting the 1400s (a lot of the land peasants relied on was common)
Again, you're generalizing. To say that doesn't work in medieval Europe is probably itself a generalization. But if you read the book, I don't think this would be a point you'd be arguing.
The Supreme Court explicitly allowed property taxes in Pollock decision. They haven’t for wealth taxes (they still might allow it but they also might not).
A federal property tax is also unconstitutional.
what is unconstitutional about a wealth tax?
>> what is unconstitutional about a wealth tax?
Article I, Section 9, Clause 4:
"No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken"
A wealth tax is generally considered to be a direct tax. If you wanted to enact one at the federal level, my understanding is that it would have to be done in proportion to the census. So, given that Mississippi is around 1% of the total US population, Mississippi would have to pay 1% of the wealth tax. Mississippi is the poorest US state, so that would be a very regressive tax.
An income tax is also considered to be a direct tax, that's why it took an amendment to the Constitution to enact one.
The Constitution applies to taxes at the federal level, not state. States could enact a wealth tax the same way they enact property taxes now (depending on their state Constitutions). The problem for them is that wealth is a bit more mobile than property.
And yes there are arguments about what a direct tax really meant in the language at the time the Constitution was written, there are arguments that the income tax should have been legal without an amendment. But that's not how it went down.
It’s not totally clear if it would be but here’s a summary: https://city-countyobserver.com/the-constitutionality-of-a-w...
I'm not a lawyer but my reasoning is this:
- as far as I know, double taxation by any given entity (Federal Gov) is unconstitutional
- a given dollar is taxed once as income. A federal wealth tax on the remainder of that dollar would be double taxation.
That does not prohibit the Federal Gov from taxing once, and your residential state from taxing you a second time.
There are other arguments about "direct taxation" I don't fully understand.
"Double taxation" is absolutely constitutional. Tons of things are double, triple, quadruple and more taxed.
I make a W2 salary. I pay federal income taxes on it. I pay FICA taxes on it. My employer pays payroll taxes on it. I might pay state income taxes on it. One event, tons of taxes. I take that quadruple taxed money and buy a dinner with a beer. Sales taxes on the overall sale, additional taxes on the alcohol, additional sales tax riders because I bought it in the touristy night life area. Triple taxes on my quadruple taxes, good lord! Unconstitutional!
Worthless phrase, "double taxation".
> That does not prohibit the Federal Gov from taxing once, and your residential state from taxing you a second time.
Once again, the several different taxes applied to my salary income. Then on that I go buy a gallon of gasoline, uh oh, federal gas taxes on that. Or I buy a plane ticket and that gets Federal Excise Tax (7.5% of the base fare), the Federal Segment Fee (currently $5.20 per segment), the TSA Security Fee ($5.60 per passenger), and more. Oof, "double taxation"! Even at the federal level!
Billionaires do pay income tax on investment income.
If they sell and incur capital gains. But they have so many better alternatives than you or me. And if they do incur capital gains they pay the same tax rate (or maybe 5 basis points higher, depending on your income) as you or me.
What alternatives are those, that enable realizing income without incurring income tax?
Borrowing against assets. Wealthy people get low, low rates, much lower than the hoi polloi would get on a HELOC or brokerage account margin loan. Banks like having them as clients.
Not only they get low rates, but if they have friends in the palace, they tend to be beneficiaries of large governmental contracts; during times of economic upset, they are the beneficiaries of large “monetary injections” that later cause inflation and prices to rise for all of us. During 2008, COVID, and the Mango recession the wealthy got much much wealthier, and all we got was expensive eggs and higher costs of living.
And how do you pay back the loan without realising a gain?
You don't pay back the loan. You die, your assets pass to your heirs, and their cost basis is stepped up. The heirs sell some of the assets to pay the loan back. They don't have capital gains because of the stepped-up cost basis.
That's the gist I got from reading https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26...
There are finer points I don't understand such as:
1. Is the stepped-up cost basis available to the estate or only to the heirs? If it's to the estate, it's easier for the bank to trust they'll be paid back.
2. If the heir gets the stepped up cost basis, what legal guarantees does the bank have that the heir will pay the loan back?
And probably a lot else. I assume there's expensive lawyering and accounting involved in setting it up, so it isn't cost-effective unless you have a certain amount to shield from taxes in the first place.
Really? They're not going to get below prime. Nobody loans out money with a guaranteed prospect of below market returns. It's going to be above prime.
Usually about the lowest rate you can get is a mortgage on your house.
Of course, if your credit is bad, you're not going to get a good rate.
First of all, prime can be pretty good vs being taxed. Secondly, who knows what kind of sweetheart deal can be pulled for a small (in the big scheme of things) "loan" when banking of billions is at stake.
> Nobody loans out money with a guaranteed prospect of below market returns
Not to you or me. Giving powerful people who can send more business the bank's way a freebie on their personal accounts might make sense as a loss leader.
An ELOC for a HNWI can be significantly lower interest than a mortgage. They can often get "fed funds rate/LIBOR + 0.5%" or so. This is because they can accept a floating rate, while mortgage rates get locked in for 10-30 years.
Adam Neumann and several others in that era famously got very large zero interest personal loans because the bank wanted their corporate business.
Only short term gains are taxed as income. Long term capital gains tax caps at 20%, wildly lower than the top income tax bracket of 37%. And it's always possible to defer short term gains (e.g. put your trading money in an IRA).
IRA contributions are drastically limited to a $7000 cap per year under 50. Whether they should be is another question, and one worth exploring.
Long-term investment is rightly seen as something to be encouraged hence the lower tax rates. You can make the argument that the rate should be more like 0% since the money invested and risked was already taxed most likely...20% is a reasonable value for the market regulating infrastructure provided by gov't entities.
IRA caps are low, but loads of people earning enough that they'd reasonably save more than 7k annually have access to 401ks or similar accounts that raise the annual cap to >30k, vastly more than the typical person is saving.
The middle class isn't taking advantage of low capital gains rates to earn more from their taxable brokerage accounts because they haven't even filled up their tax-advantaged accounts.
There are loopholes to roll all sorts of nonsense into an IRA though. There was a whole news cycle in the 2012 election about Mitt Romney's $4M "IRA" or somesuch. And IRAs are hardly the only shelter from income tax, they're just the most obvious.
The simple truth is that wealth beyond the ~$10M level in the US pays essentially zero "income tax". It just doesn't happen, no one does it. Short term gains are only taxed for small investors who don't know any better.
According to Google:
"Entrepreneur Elon Musk announced on social networks that this year he will pay 11 billion dollars, thus becoming the largest taxpayer in the history of the USA."
Certainly someone we can take at his word, which is why my self driving Roadster flies me to work every day
That was on a sale of Tesla stock that he'd held for much longer than the long term rate threshold. He paid 20% on it, or plausibly less. I, personally pay a higher rate than that. Big numbers notwithstanding, Elon Musk shouldn't be paying less tax than I do, sorry.
If you hold stock long term, you will pay the same or less tax.
From Google: "For the 2025 tax year, individual filers won't pay any capital gains tax if their total taxable income is $48,350 or less"
If you've got a smart phone and a credit card, you can buy stock. See robinhood.com
You're dodging, and I know you're smart enough to know how this goes. I don't make money with long term stock, I make salary. I pay >>20% tax on that salary. Billionaries make, statistically, zero salary. All their income is on long term gains. All of it. So billionaires pay 20%, and that only if they're dumb enough not to find other shelters.
You're just saying "Well, that's the way the tax code works". I'm saying "The tax code sucks", and your point is non-responsive.
You can invest in stocks, too. Over time, it will pay more than your salary.
If you bought a house, and it goes up in value, that increase will be a capital gain taxed at capital gains rates.
So how "over time" do I need to wait until I start paying the same tax rate as a billionaire? Seems like your solution to "the rich pay less tax" is "well, everyone should just be rich then"?
"Let them eat cake" makes for extremely poor federal revenue policy.
Not at rates anywhere near tax rates on wages of a middle class worker.
Because investment income is not the same as wage income. Nor should they be.
Why not? Money is fungible. A dollar is a dollar. Why should investment dollars be taxed less than those earned through the sweat of one's brow?
Mainly to encourage people to save their money. You know, "work smarter, not harder"...
Financial policy is very specifically against people saving their money though - that's why a certain level of inflation is considered desirable to mainstream economists. Spending and borrowing is heavily encouraged at all levels, while investment opportunities are gated based on wealth and income to prevent the poor from being able to "work smarter".
> investment opportunities are gated based on wealth and income
Anyone can install robinhood on their phone and trade using their credit card.
> Financial policy is very specifically against people saving their money
No, it isn't. People who save money are terrified of risk. There's nothing stopping anyone from investing the money.
> that's why a certain level of inflation is considered desirable to mainstream economists
That's the excuse the government makes to inflate the money. You'll never see a politician point out the real reason for inflation. It's so they can spend it without raising taxes, but it does cause inflation, and inflation has to be blamed on something else. Anything but the truth.
> Anyone can install robinhood on their phone and trade using their credit card.
Buying a few stocks on an app is not anywhere near the same thing as being an accredited investor. Access to the most lucrative investment opportunities are not available to the average person, and that's almost entirely due to rules intentionally created to block anyone but the already wealthy.
The methods that institutional investors have, like market making or delta one strategies, aren't available because of the rules, it's because individual investors literally don't have the scale, flow and networks to do it.
Second of all, at the end of the day it's other people money's they're using, and are entrusted to manage. You can't demand people to just lend money to anyone, any sort of free market of loans will quickly coalesce into a few capital allocators.
Please, this thread is about the average wage-grade worker (money earned via the "sweat of one's brow"), not an "accredited investor". In this example, almost anyone in the US can open up a Robin Hood, Vanguard, Schwab, Fidelity, etc account with probably $25. You don't need access to the most lucrative investment opportunities to make money; simply buy a standard S&P 500 ETF and call it a day. Over time, the chances of you making money with your investments are high, and the tax burden is lower, meaning you get to make and keep more money in your pocket. That is a win for everyone - not just the magical "billionaire".
The average worker in the US needs these sorts of opportunities to be self reliant. You don't need to be a billionaire to make money on the market, you just need a few dollars, some time, and the will to take a little risk. Stop hating on the average worker...
To say nothing of insider trading for those connected to folks setting policies that affect the economy
Right, because the average worker has insider connections that set policies that affect the economy. /s
What are the examples?
Sorry, nothing prevents the poor from working smarter. Just because you are poor does not mean you are uneducated. And, investment opportunities are NOT gated based on wealth and income. Literally anyone in the US can open an investment account and get started. The lack of desire is the real issue.
> And, investment opportunities are NOT gated based on wealth and income.
What? There is literally a class of people considered accredited or sophisticated investors.
To be considered an accredited investor by the SEC you must have a net worth of over $1M -not including- your primary residence, and you must have an annual household income of over $300K.
It is quite literally a wealth and income gate.
We have tax-advantaged retirement accounts to enable the middle class to save a reasonable amount in order to retire without being a burden on society. A typical saver doesn't have additional extra money leftover for a taxable brokerage account that exposes them to capital gains taxes.
Low capital gains taxes aren't meaningfully encouraging somebody making 75k and saving 10k annually to continue with their saving plan.
So you tax the person extra who needs to eat their money, and let the person who is swimming in money keep more of it?
And you earnestly can't understand why the poor want to increase taxes on the rich?
So we can tax it at a higher rate? Couldn't agree more.
Short term dividend income is taxed at the same rates as wage income.
Thanks, I should have been more clear.
When i needed money for a house, without a good security i had to pay 1.6 and with 0.8.
Rich get richer, poor never see this advantage.
Billionaires do not get a tax exemption
No but their earnings are mainly in their companies, and those can hire fleets of tax attorneys and accountants to crush their tax burden.
Once the money is in stocks, it doesn't get taxed unless you draw on it, but the billionaires can use strategies like buy, borrow, die (which last I checked only really works if you're north of ~ $300M) to avoid personal taxes.
Billionaires benefit most from the largest tax exceptions. No tricky accounting needed it’s baked blatantly into the tax code. Long term capital gains are specifically lower than short term capital gains. Further gains are only taxed on sale allowing a lifetime of growth to pass to the next generation tax free.
They also operate at a scale where many tax breaks become viable. CEO owners aren’t paying themselves nominal salaries because they are actually working for free. Creating a shell company to own your 50k car isn’t useful but it’s damn well worth it if you’re buying a 50+m dollar yacht for personal use. Turning depreciation into a nominal loss offsetting capital gains etc.
Meanwhile people of lesser means get stuck with all kinds of crap like a 10% early withdrawal penalty on 401k plans.
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If only governments weren’t so damn useful we could all avoid taxes.
Instead it’s mostly a question around who pays what share, and there’s some massive winners and losers.
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I can't tell if this is sarcasm or not.
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>> College endowments are typically tax-exempt, but a 2017 law imposed a 1.4% tax on investment income for a small group of wealthy private universities.
> LoL - why it makes any sense to do this for universities and not billionaires is beyond me, but I'm sure half the country can explain it to me like I'm 5.
Because they already do it for billionaires: unlike university endowments, billionaire investment income is not tax-exempt by default, it's already subject to income tax [1].
[1] At least theoretically, ignoring the loopholes and tax-dodges billionaires can take advantage of with literal armies of accountants.
Billionaires pay 37% or 20% on their investment gains, can't really explain it to a 5 year old because congress and the IRS make it complex.
They don't pay anywhere close to that, there are tons of tricks to avoid paying that % on gains and the more money you have the more leeway for loopholes.
Very relevant in startup ecosystem as well (look up exchange funds, opportunity zones etc.)
40% of Federal income tax revenue comes from the top 1%.
Imagine how much federal revenue would increase if that 1% paid the same effective rate as say a typical plumber, rather than the <10% they currently pay. That might actually put a dent in the trillions of dollars this congress is about to add to the national debt.
shrug
I hear that sentiment a lot, but it doesn't seem right to me. My salary is pretty close to the median plumber's income, and my family's effective tax rate last year came in at... 1.6%. And that's with all retirement account contributions going toward Roth accounts. If we'd chosen to contribute to traditional IRA/401k accounts instead, the EITC and child tax credit would easily turn our tax bill negative.
A quick search tells me the median plumber salary is ~$60k. Your telling me your entire tax burden is ~1k? I find that hard to believe, and if true is pretty darn atypical. That's closer to what I was paying when I was making ~10/hr.
Yes. We had $50k of taxable W2 income ($63k including pre-tax insurance premiums and HSA contributions), $13k of taxable family leave benefits, $4k of interest/dividends (mostly qualified dividends, taxed at 0%), and $9k of long-term capital gains (taxed at 0%), making our pre-tax gross income about $89k. Only $66k of that is subject to taxes; the standard deduction brings that down to $37k, on which the tax is $4k. With a $2,000 child tax credit, $400 saver's credit, and $200 foreign tax credit, our tax liability is reduced to $1400, which is 1.6% of $89k.
"That might actually put a dent in the trillions of dollars this congress is about to add to the national debt."
It might also result in even more spending. I don't think that there is any "natural ceiling" when it comes to willingness of politicians to spend other people's money. The only ceiling is external - how much will the system bear.
> rather than the <10% they currently pay
I suspect you're using a different definition of "income" than the IRS. What is it?
The amount they report on their tax returns.
There's no case where that's true.
https://www.pewresearch.org/short-reads/2023/04/18/who-pays-...
For one thing, many plumbers do make it to the 1%: Trades are a profitable line of work for the industrious.
But the median 1%’er is paying 3-4X the effective rate of the overall median earner.
So if they're earning 50x as much, why are they only paying 3-4x the tax?
>> is paying 3-4X the effective rate > why are they only paying 3-4x the tax?
You have conflated the tax rate with the tax amount.
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They did! Then someone decided that was waste and installed incompetent people over it.
What percent of all income do they make?
Edit: it's an honest question. Maybe the top 1% paying 40% of all income taxes is too much tax. Maybe it's not enough. Without knowing how much of all the income they make it's a meaningless number.
According to the Tax Foundation[1], for tax year 2021, the top 1% of U.S. earners—those with an adjusted gross income (AGI) of $682,577 or more—accounted for 26.3% of total AGI and paid 45.8% of all federal income taxes.
My personal opinion is that income tax should be more progressive, but I know that plenty of smart people disagree on that.
[1] https://taxfoundation.org/data/all/federal/latest-federal-in...
Your source leans right-center, so probably good reason to suspect their reported top 1% AGI is low and their reported federal income tax estimate is high.
https://mediabiasfactcheck.com/tax-foundation/
It’s IRS data. You can download it from the IRS website and replicate the analysis and prove them wrong if you’d like.
https://fee.org/articles/5-reasons-to-avoid-ad-hominem-argum...
1. Does not follow. Just because you don't like someone's politics doesn't mean they're dishonest.
2. Your own link contradicts you. It says explicitly that that site hasn't failed any of their fact checks and doesn't use loaded words that they say are typical of that category. It says the categorization is because the site promotes libertarian policies.
There are a lot more taxes than the federal income tax. It happens to be one of the most progressive taxes. Anyone focusing on that and ignoring all the others is trying to scam you.
This is true for ultra high net worth individuals. They can do schemes like borrowing against equities and using the tax-free cash for expenses or purchasing other assets.
It is also true for many “normal” one percenters. For example there is a service for incorporated anesthesiologists where you tell them where you plan to go on vacation and what dates, and they create a bullshit anesthesiology conference, including the brochure and other artifacts, that meet the letter of the law IRS definitions for a valid business expense. None of this stuff ever hits AGI.
A simpler example: social security taxes hit a cap at a bit under $200,000/year. Somebody working fast food at minimum wage is paying 6.2% on every dollar they earn, while with my fancy tech job I’m paying a substantially lower percentage.
The social security "tax" should really be conceptualized as an investment, not a tax. The typical fast food worker has probably not passed the first bend point in the Social Security PIA formula, meaning that social security is giving them 90 cents on the dollar*. You, with your fancy tech job, are likely well past the second bend point: social security is only giving you 15 cents on the dollar* (and nothing, obviously, for earnings beyond the payroll tax ceiling).
It's a progressive system overall - but it wasn't designed for the purpose of wealth redistribution, hence the payroll tax ceiling.
* More precisely, their monthly benefit at full retirement age increases by 90 cents for each additional dollar of pre-retirement average monthly earnings, whereas yours only increases by 15 cents.
That's wild. I searched, though, and this is the closest I found: https://www.cerebraltaxadvisors.com/blog/vacation-business-t.... Is there a link you could share for the actual fake conference approach?
> This is true for ultra high net worth individuals.
Anyone can borrow money against their stocks, house, or credit card. It's tax-free as well.
> They can do schemes like borrowing against equities and using the tax-free cash for expenses or purchasing other assets.
Um, borrowing money is not "income". You have to pay it back, with interest.
If the asset appreciates faster than the interest rate there's never a need to sell. If the interest rate is lower than the capital gains tax rate, paying the interest is cheaper than paying taxes.
UHNW individuals can borrow until they die. Their assets pass to their heirs with a stepped up cost basis. The heirs can liquidate whatever's needed to pay off the loan and incur no tax.
Normal people can't do this. If I die owing money, my creditors will take it out of my estate before it passes to my heirs. UHNW estates can be structured differently and creditors can accommodate different payment terms (get paid second) because they know the money's there, and it saves taxes.
You can also read: https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26...
I might have gotten some things wrong. Or maybe the poster has.
> Their assets pass to their heirs with a stepped up cost basis
LOL, the stepped up basis gets hit with the inheritance tax.
> The heirs can liquidate whatever's needed to pay off the loan and incur no tax.
The loan and the interest payments and dont forget the inheritance tax.
> Normal people can't do this.
Yes, they can borrow money, die, the inheritors pay off the loan with the stocks, and then pay estate tax.
> LOL,
I assumed you asked a question to learn something. If you're not interested in learning, please continue believing that everyone gets the same tax system. Otherwise keep reading.
> the stepped up basis gets hit with the inheritance tax.
There's no federal inheritance tax. Only some states have it. You're thinking of the estate tax.
If you read the link I posted: https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26...
it has a fairly detailed explanation of how it's a completely different ballgame above a net worth of $300m. Grantor trusts allow sidestepping estate tax and...
> The loan and the interest payments
"The loan" otherwise known as "income" because that's what it really was. Income that would normally have been derived by selling assets. Obviously it has to be paid back. No one said it's free money. Only that it's (largely) tax-free money.
The interest payments are lower than the income tax would've been on the same amount of income.
> and dont forget the inheritance tax.
You mean estate tax. Explained above.
> Yes, they can borrow money, die, the inheritors pay off the loan with the stocks, and then pay estate tax.
Not in the same way, and not nearly as effectively.
If there are specific inaccuracies with https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26... I'm open to learning.
> There's no federal inheritance tax. Only some states have it. You're thinking of the estate tax.
They're the same as far as this discussion is concerned, as the amount that the beneficiary gets is (roughly) the same.
> "The loan" otherwise known as "income" because that's what it really was
Borrowed money is not "income" in any sense of the word. When I was on summer vacation, I decided to take a class in accounting. One of the most productive uses of my time. I recommend it. P.S. if your business tries to classify borrowed money as "income", that's called fraud.
> If you read the link I posted
I rely on my CPA for tax advice, not the internet, nor do I care much for misusing accounting terms. I've read too many articles that confuse income with revenue, wealth with income, and so on.
> They're the same as far as this discussion is concerned, as the amount that the beneficiary gets is (roughly) the same.
The estate's value is reduced by what it owes.
> if your business tries to classify borrowed money as "income"
sigh C'mon man, engage in good faith here. Stop saying things I didn't say.
If you can borrow cash against assets, don't have to pay principle until you die, and only pay low interest payments then it's functionally the same as selling those assets at a low tax rate. That's the principle.
And if you can use trusts to avoid estate taxes then there are no (or very low) taxes due ever.
> I rely on my CPA for tax advice
Ok ask your CPA what they know about using trusts to avoid estate taxes. Maybe it's BS but maybe it's true. Without some curiosity, how will you ever know?
> not the internet
More reputable sources than Reddit indicate it may be possible to use trusts to greatly reduce or eliminate estate tax:
https://privatebank.jpmorgan.com/nam/en/insights/wealth-plan...
https://www.investopedia.com/terms/g/grat.asp
https://www.fidelity.com/learning-center/personal-finance/wh...
I don't think anyone is arguing that a loan is income in a legal sense. I am going to generously assume you misunderstood.
20%. https://ourworldindata.org/grapher/income-share-top-1-before...
The top 1% of people make 20.7% of the country's income. Given progressive tax rates, they should be paying a lot more than 40% of Federal income tax revenue, but rates don't scale enough, and aren't lax enough on other classes.
Can you explain your reasoning behind "they should be paying a lot more"? I kept hearing that they didn't pay their "fair share" when in fact it appears they pay double. It just seems like whatever they actually pay, measured in dollars or as a percentage, will always be widely regarded as not enough.
There are a couple of key phrases in politics that get used because there is no actual justification. "Fair" is one of them. It is impossible to achieve fairness in the tax system under any circumstances, it is always taking from someone who - from the fact that it isn't voluntary - we can assume quite likely disagrees with how the money is about to be used. Taxes are fundamentally arbitrary.
So in practice, if "fair" is used in politics the appropriate reading is often as a euphemism for "I think we have the numbers to push this interpretation of the world on people; it'll be good for us".
Could you help me understand why an individual with one billion, needs two? At what point would you accept that someone has more money than they'd reasonably need? And if you just thought of a maximum amount, then, wouldn't the acceptable tax rate over that amount, be 100%?
> Could you help me understand why an individual with one billion, needs two?
Sure. https://news.ycombinator.com/item?id=43687828
Not sure any of these companies have really appreciably made the lives of people better. Sure seem to have funnelled more money to Elon though.
No money was "funneled" to Elon. He created it.
As for making lives better, Starlink was provided free to disaster victims in N Carolina and the LA fires. Something the government failed at. Enabled by cheap reusable SpaceX rockets, another thing the government failed at. Starlink is very popular, so it must be making peoples' lives better.
> No money was "funneled" to Elon. He created it.
Money was funnelled to Elon, he has a knack for getting government contracts. My memory is Tesla was powered by many grants for whoever was willing to work on electrification of society. The issue with that is that people want to put more money under the control of the government, despite it being the entity that funnelled money to Elon. I don't really understand that perspective, it seems a bit crazy - it'll end up with Elon getting more and more power and wealth. If we assume de-powering and de-wealthing Elon is a good, why push more money into the system that is wealthing and powering him? One theme in Elon's companies is they are positioned to hoover up money the US government is wasting and make sure it ends up in Elon's pockets.
Less government spending is more likely to hurt Elon than help him.
Government contracts where they buy something is not "funneling" money any more than you "funnel" money to Safeway when you buy tomatoes there. And if Musk had failed to deliver working rockets, NASA wouldn't have paid a dime. Musk bet his entire fortune on it.
Musk also sold those rockets to NASA for 10% of what NASA would otherwise have to pay.
> One theme in Elon's companies is they are positioned to hoover up money the US government is wasting and make sure it ends up in Elon's pockets.
Tell us how that works.
> Less government spending is more likely to hurt Elon than help him.
Are you suggesting that Musk is doing what's right for the country rather than what's right for his fortune?
> No money was "funneled" to Elon. He created it.
No he didn't.
> Starlink is very popular, so it must be making peoples' lives better.
So is meth.
So every enterprise becomes state owned? Ilya Sutkever's new company is already worth 32B so 31/32 of it should be owned by the government in your world? Who makes the decisions for it?
I am alarmed by how quickly Americans leap from the suggestion that we tax the super-wealthy more, to this idea of full communism.
Assume you think the government is in a better position to spend that billion than the billionaire is to figure out what to buy or invest their money in?
I know he's out of favor with a lot of people, but would Elon have created SpaceX or The Boring Co or Neuralink, or helped start OpenAI if he hadn't had the spare billions to do so?
I'd much rather have multi-billionaires investing in the economy, and in the future, than giving additional money to the government.
So you'd rather have someone unelected with that money. Don't y'all live in a democracy?
We live in a Constitutional republic, with a Bill of Rights and the right to own property.
So, no?
Correct. Look up "Constitutional republic".
https://www.uscis.gov/sites/default/files/document/lesson-pl...
> when in fact it appears they pay double
They very obviously don't make only twice as much money as the bottom 80%, so how is that equal in the slightest?
You've mis-read the comment. This logic is not strictly related but it might help you understand what he was saying:
There are ~300 million people in the US who are not billionaires. If they earn, on average, $4 each that balances out a billionaire by income [0]. Since there are <1,000 US billionaires, the average american income would need to drop back to something around the $4,000 range for billionaires to be out-earning them.
This is why taxes tend to land heavily on the middle class, the billionaires don't control most of the money. If politicians want access to money, the biggest pot isn't the billionaires.
[0] And billionaires don't generally make billions in income because it is a wealth measure.
The top 1% aren't the billionaires. It's also not most of the millionaires. It's people earning a tiny bit less than 700k a year.
The suggestion is simply that the top 0.1% pay more - as they will be little affected by it.
It's important to distinguish between wealth and income. Like, I would say that a lot of HN readers are in the top decile of income in whatever country they live in, but far, far fewer are in the top decile of wealth.
Personally, I think that we should tax wealth more in general, and probably make the income tax a bit more progressive (I currently pay 52% which sucks, but if I had to pay a few pp more to get rid of homelessness and poverty in my country then I'd be ok with it).
> as they will be little affected by it
Everything you tax away from wealthy people is removed from their investments.
For example, if all of Musk's income above $1m were taxed away, the following companies would never have existed:
1. Tesla
2. SpaceX
3. Starlink
4. Neuralink
You didn't have to sweeten the pot, I was already on board
Its still less than the fines most of those companies have incurred in the space of a year.
Do you think they were arguing for taxing away all wealth over $1 million?
If they were taxed $1, that's $1 taken away from investments.
Ok, but how does that prevent the existence of what you mentioned?
Do you think they weren't? What about that logic doesn't apply to millionaires?
Or to put it another way, if I make the same claim about millionaires; how do you expect to argue that they will be greatly affected by being taxed more? A 1% tax increase on someone's gross income is never going to "greatly" affect them unless, but if it happens 100 times they will be pennyless.
If you take money away from someone, they will have less money and do less because they have less resources.
I'm not sure what the disagreement is? None of the stuff you said is wrong, but I don't see how it is a response to my comment. Nor do I see how it is particularly relevant in a conversation where I assume the idea is a different progressive taxation rate.
There isn't a disagreement, it is a question (technically, several questions). The hint is in the "?". Your 1 sentence comment isn't long enough to respond to directly without more information, even if I wanted to.
I am going to abstract from the hard 1 million number which is obviously low in 2025, and just base my arguments on maybe a few million as a reasonable limit. Make it ten or twenty if that fits your mental model better. You have no way of knowing that those companies would never have existed. They could very well have existed, just no billionaire would have been the majority owner. The money is not removed from their investments, but they are required to divest them to other owners. Funding mechanisms for the companies now self-funded by billionaires would be quite different if the ultra-wealthy were never allowed to exist. It would require more cooperation, but it would not therefore be impossible.
If somebody cares about progress and is highly motivated, they should remain highly motivated to create incredible products and services, whether that buys them unchecked power or not. If some people would be less motivated and do less than they do now, it would be a lesser evil that creating oligarchs thirsty to dominate whenever they get the chance. As long as people can live a good and comfortable life, they do not have rights to more than that.
People who argue against progressive taxes tend to ignore the fact that modern capitalism is basically a game, one where the rules greatly favor the richest, who have virtually unlimited leverage compared to the average person. They make money exponentially more easily than others. It is absolutely right to correct this game through appropriate progressive taxes. Every once in a while an adult needs to step in to keep the game fun for everybody, and not just let the best player dominate others and make everybody else miserable. Maybe if we did this, the price gouging and constant turning of the screws would give way to a society where fair trade was the default cultural and economic norm.
Certainly hoarding more wealth than Smaug is a crime of grave injustice against humanity. For the mind completely sold to capitalism, this is impossible to understand. But people come before wealth and power.
> If somebody cares about progress and is highly motivated, they should remain highly motivated to create incredible products and services, whether that buys them unchecked power or not
If you tax their money away, they have that much less capital to invest.
> It is absolutely right to correct this game through appropriate progressive taxes.
Only if you don't like electric cars, cheap space rockets, cheap global communications, and enabling people with spinal injuries to need a lot less help.
> Certainly hoarding more wealth than Smaug is a crime of grave injustice against humanity. For the mind completely sold to capitalism, this is impossible to understand. But people come before wealth and power.
Nobody hoards wealth. They invest it. Nobody has a Smaug hoard. There are no Scrooge McDuck cash vaults.
I suggest you check out what happened under communism in the Soviet Union, China, Cambodia, Cuba, etc., under communism where people came before wealth and power. Your ideas sound good in a textbook and in the classroom, but they just don't work in the real world.
How come the system rewards someone like Musk with so much but doesn't do the same for people like Norman Borlaug (green revolution), Frederick Banting (insulin), Karl Landsteiner (ABO blood groups) or Katalin Karikó (mRNA vaccines)?
What sort of things can our society do to ensure that the people who dedicate their lives to eliminating the suffering of so many are compensated for what I'm sure we can agree are absolutely amazing accomplishments?
> Nobody hoards wealth. They invest it. Nobody has a Smaug hoard. There are no Scrooge McDuck cash vaults.
There are, unfortunately. [0] Though Putin's gold palace did have to be stripped for fungal problems, later.
Musk does go around with a large amount of debt, such as the 13bil he currently owes. So he's less likely to have a prepper vault. That does not mean that human greed doesn't turn to cartoons for inspiration, at times.
[0] https://youtube.com/watch?v=ipAnwilMncI
Musk's companies are hype stocks. Today's many successful tech companies run because of the commodification of x86 hardware, allowing them to build massive data centers, run cheap ad platforms, provide things like YouTube, etc, for free. All of this was because of Linux, which Linus Torvalds created. Before Linux and commodity x86 made it reliable and useful, every company had to pay Sun/IBM exorbitant amounts. In no conceivable universe has Musk created more value than Linus. Yet, Linus is not a billionaire.
Most businesses are funded by taxpayers, either directly or indirectly. Elon Musk is a billionaire because of DOE funding, or there would have been no Tesla today.
By January 2009, Tesla had raised $187 million and delivered 147 cars. Musk had contributed $70 million of his money to the company.
In June 2009, Tesla was approved to receive $465 million in interest-bearing loans from the United States Department of Energy.
https://en.wikipedia.org/wiki/Tesla,_Inc.
What is the right percentage for the 1% to pay? State a percent.
I keep here this “the rich should pay more”, but rarely do I hear a number.
Whatever it takes to restore 1960s level of inequity.
By whatever measure works, eg old school gini coefficient or something more modern.
You're right though: food fights over decimal points and gaming the rules nicely obfuscates any constructive debate about what kind of society we want.
Your answer begs the question - why is the 1960’s the right target?
And if the Gini coefficient is calculated pre-tax and pre-benefit distribution, it’s not going to change with high taxes and high redistribution (and yes you mentioned it may not be the right measure).
And if the Gini coefficient is calculated based on income data from the US, do we know if the better Gini from 1960’s wasn’t just due to income not being reported to the IRS?
> why is the 1960’s the right target?
Realpolitik. Proper Nordic levels of (lesser) inequity is not likely in the USA. But selling the nostalgia of our '60s era prosperity might fly.
> if the Gini coefficient is calculated pre-tax
Firstly, then pick a different different metric. Gini coefficient is merely the most familiar.
Secondly, you asked about proper income tax rate. In my pithy reply, I implied outcomes are more important than implementation details, but slap fights (like this one) about those details are used to distract. (I think the kids today call that "bike shedding".)
Also, I did not explicitly state that measures of wealth distribution is the central issue. I regret the omission.
--
While I have your attention: How do you think our tax regime should be structured?
Feel free to link to any prior explanations (posts) I may have missed, so you don't have to repeat yourself.
Tax every dollar over $999,000,000 at 100%.
50% tax.
For perspective: UK tax rate bands are 40% between £50k-£125k, 45% above that. So 50% tax for the 1% isn't wild at all in absolute (although it's a big departure from the american approach to taxes, of course)
https://nymag.com/intelligencer/article/fact-check-richest-1...
That seems excessive.
Corporations are persons, right? Why is their tax rate just half that of real people?
Why aren't all persons taxed equally?
The top 1% own 39% of everything in the U.S. You are not in the top 1%. Why are you complaining again?
The city claims to own my house, as they charge me rent every year, and have a long list of things I'm not allowed to do with it.
That rent went up over 10% last year. For contrast, the rent control people want to cap rent increases to 7%.
My heart bleeds for you.
I appreciate your concern.
If they don't wanna pay so much in taxes, they should stop having so much money. Taxes function to raise revenue and thus have to go where the money is.
This conversation is about billionaires, not the top 1%.
There are no loopholes for investment gains. If you are talking about offsetting losses and delaying gains, those options would likely be available to endowment funds.