Should we tax the rich more? | The Economist


Everyone depends on hospitals,
roads, police and schools but they’re expensive and governments across the world are feeling the pinch. So, how can we continue in the future to afford good quality public services? Why has pressure on
public services increased? Populations are aging. As the number of retirees grows, working people are going
to have to pay more taxes to support them. And as healthcare technology improves, the cost of health care
is also going to rise. But where to find the cash? Basically governments
can tax three things, income, consumption or wealth. It’s not your imagination. Income taxes really have been increasing over the past 50 years. The evidence shows that taxes on income including corporation tax
discourage people from working. Countries with low income taxes such as the UK tend to have
stronger economic growth. Second, consumption. This is things like sales tax in America or value-added tax on purchases in Europe. One problem with consumption taxes is that they hit poor people hardest who spend more of their
income on day-to-day expenses. Third, we have wealth taxes. This could be a better idea than taxing income or consumption. This is partly because
it places a higher levy on the things that rich people have such as property, and investments. Some economists advocate
something called a land value tax and this is basically where you tax the value of plots of land and this can raise a lot of money. A land value tax has very few unintentional
bad consequences. The problem is that taxing wealth is not politically easy. Homeowners, for instance,
are gonna be furious if they’re asked to pay
higher property taxes but if people want good
government services, it’s gonna need money. Taxes on wealth are always unpopular but sooner or later, governments are going to have to bite the bullet.

Maurice Vega

100 Responses

  1. The rich deserve to be taxed more because so many of them do not pay taxes anyway! Read Free Lunch by David Cay Johnston and you might never want to shop at Walmart ever again. Look at what scum those rich bastards are.

  2. The rich are able to collect their share of taxes by raising prices for the poor thats how they got rich.

    "Tax the rich" really means soak the poor without them knowing it.

  3. The simple answer is no. When people start taking things for granted then you start a process which goes slightly in the opposite direction, what you need is incentive and there is no incentive if there is no carrot, there is no carrot if you got the next best thing in your lap already. Economics is extremely complex and just throwing around statements like these is an oversimplification which can do damage.

  4. Weath tax is a double edged sword. Very much so that perhaps in worst case 0 aspiration to keep wealth or to work. This needs to be thought out better. It needs to be specifically targeted to the 1%, only.

  5. Wealth taxes would encourage people with lots of money to even more strongly influence Governments, and Governments will feel obliged to act in the interests of their paymasters… However, wealth taxes ought to mean that the beneficiaries of media trusts might pay more tax.
    Land taxes have the advantage that land cannot move to a tax haven, unlike consumption, wealth, or income taxes.

  6. The problem is that when a corrupt govt spends approximately 800 billion a year on war it doesn’t matter

  7. How about just lower government spending? Allow people to figure their life for themselves? No beaurocrat is going to know better what you need than you.

  8. The title is "Should we tax the rich more?" but there was no any evidence in the clip with strong reason of that. If The Economist think it should be, it's not a reason. You don't show any research or example of the countries where it was realized. Doesn't it demotivate people to invest in your country? They could spend money anywhere in the world. And it will negatively affect your economy.

  9. How conveniently you forget that corporations are paying lesser or no tax. They are the real benefactors of globalization. They have the means to base themselves in low taxation countries whereas the middle class don't. They are increasingly shirking their social responsibility.

  10. You need to redo this video: 1) Hospitals DO NOT equal health care. That needs to be made clear, or you need to just say 'health care costs'. 2) Why would the cost of health care increase with technology? Doesn't the trend of better tech drive costs down? 3) Taxes on wealth make people angry AND the people who are already paying the most in taxes may leave altogether, costing people their jobs as well the the income tax revenue the govt. increasingly depends on.

  11. The way is to substantially increase inheritance taxes: I would grant a total exemption from taxes for inheritances up to one million Euro per heir; between one million and two million a 40% rate; over two million an 80% rate.

  12. Taxing the rich is not a good idea because:

    Taxing will push them out of the United States (or any nation) so no revenue from them and,

    Will cause them not to create businesses to create jobs.

  13. Australia has 18% – 51% tax on cars , 10% -25% tax on goods and food ' 20% stamp duty on a home . Australia a hell hole 15 yrs , Hight taxation only benefits Polliticans salaries

  14. You're a communist idiot , big percentage of middle class in Australia own investment properties , not rich people that's a small percentage

  15. We should tax the rich to prevent them form controlling the country, most people think this is wrong because they think there even slop to the 1% but the reality is the one percent of the one percent owns 40% of American wealth.

  16. Lets tax the rich even more to incentivise people from being rich in the first place, they don't deserve a return investment on their hard work, how dare they think they can be rich! (sarcasm)

  17. We should not punish the succeed and encourage the not so. A free society let each and everybody has its own way under the same laws and regulations. There are many other ways to encourage the not so succeed people to work harder and keep on trying.

  18. We should not punish the succeed and encourage the not so. A free society let each and everybody has its own way under the same laws and regulations. There are many other ways to encourage the not so succeed people to work harder and keep on trying. Equality under the laws is the only equality on earth possible. Stop crazy ideas that drive people to work less in order to wait for help.

  19. the problem with taxing wealth like real-state is that the house is not generating any money while ur living there… So it might be not so fair

  20. Of course we should tax the rich more! All those tax cuts they got off the back of the scam trickle down effect can be reversed for starters.

  21. Heavy taxes on the wealthy will drive them out of the country or under ground. Maybe even make people unwilling to try to begin with.

    Bottom line is that: No person or group of people is entitled to the money or property of another person. Regardless of either of the parties circumstances.

  22. How do people expect to tax the rich in the name of government, when the government can’t even manage the trillions of dollars it has collected in its own name…

  23. > Country Leader: Ok guys, we need to tax rich people more, because [ insert ideological motivation ] and everything will be better!
    > Rich Guy: Fucks off to another country
    > Country Leader: ayy lmao

    tfw you dont have any private investment
    tfw there arent private jobs neing generated
    tfw people get unemployed and poor

    A lot of people fall on the impression that " raise taxes, problems solved" and is that easy. Maybe its not the intention of this video, but it definetly helps support that vision, be it on purpose or not. But If it was that simple, every State would have already done it.

  24. The Marginal Tax Rate during the Eisenhower Administration was 91%. Go and look at all the things we achieved in those years. "the best education system, with mostly free in-state tuition for college; we had an increasing minimum wage, strong unions and, higher productivity—we were at the height of American supremacy. … Medicare, and Civil Rights advances"

  25. “Taxing the rich” or “money distribution” is just stealing plain and simple. Everyone who says otherwise is a complete idiot and lazy n just shows they don’t understand how money works. Who wants to argue??

  26. Taxing the rich only slows the economy, reduces jobs, and increase unemployment because they cut wages and positions to incur the rise of taxation.  Our government needs to be cut in half, social programs removed from the budget and then those people getting handouts will then get off the couch and work for their money.  Stop adding fuel to the fire…government should not control ALL.

  27. This is a stupid idea and it will render economic growth in the country. How does an economic channel suggest something so dumb? Rich people already pay more taxes.

  28. Any system that punishes people for being more successful or having more than their nieghbour is flawed. Even with a flat tax rate the rich are still paying far more taxes than the rest of us. I know dudes who worked hard to get to where they are ($200,000/yr) and they are reamed by the government (to the point of being almost broke) in taxes simply because they have more money. It is easy to prattle about taxing people with more money than you a lot because you do not get affected by these insane tax hikes. As someone who was making $10,000/yr last 2 year who now makes $48,000/yr and eventually six figures before the year runs out, It is incredibly frustrating to see the government take increasingly larger chunks of my paycheck in the name of me "paying my fair share".

    p.s. If your answer is to use tax loopholes to avoid getting tax raped by the govt then maybe we should lower taxes so people don't have use loopholes in order to keep more of their own money!

    TL;DR LET PEOPLE KEEP MORE OF THEIR OWN DAMN MONEY!

  29. Great idea! Take more money from the wealthy business owners so they can create less jobs, buy fewer goods (which in turn also causes companies to hire fewer workers), and have less money to invest in research and development (which also means less hiring)! They'll have less money to advertise (which means people in marketing and sales positions will have less work) and they'll have less money to put towards benefits (so employees will get higher health care premiums or lose coverage all together)! They can even delay or stop providing bonuses or raises to their workforce due to their higher taxes or better yet… fire staff they can no longer afford! I can't believe no other socialists thought of this before! This will be great! Where do we sign up for this? By the way, before people make assumptions, I am neither wealthy nor a business owner. I'm just completely convinced that more taxes (at any income level) are not the answer.

  30. Please focus on things that matters, not some ideas that you can not implement or suffer the consequences of such implementation. Rich people dont pay tax and if you force them they will move to other country, poor people talking about tax the rich? You have not even scratch the surface of legal tax avoidance.

  31. How about we get rid of all the Mexicans. Just kidding. Joke from the TV show South Park. I added this in because a lot of the comments are starting with "how about". I wanted to add some humor into this.

  32. Taxing wealth, and taxing investments, when brexit is going on… whos bright idea was it to deter investment into the country when it will need as much foreign investment it can get

  33. @0:48 did he just say income tax has been rising while showing a graph of income tax as a percent of total taxation raising over time? I expect better from the economist

  34. Riddle me this then… where would we draw the line? And what would be stopping people from lowering their wealth, income, consumption to just below that line, thus avoiding the higher taxes and ultimately making more.
    Doesn't a tax on the wealthy just deter people from pursuing more wealth, leading to less consumption, lower corporate incomes, and thus less money going back into the people?

  35. There are just two options: 1st you give your money VOLUNTARILY for receiving a product or service YOU ASKED. 2nd YOU'RE FORCED to give your money to someone wich is theft. Btw, the state is sending that money to abortion clinics.

  36. With the advancement of techs & passing of time, our economic & social activity is becoming complicated & accelerated exponentially.

    On the other hand, we have problems with the sustainability of human resources, such as health degradation over time and generation.

    How much we produce wealth or how better we distribute wealth, we can’t enjoy or afford it if our health and education decline.

    I hope new techs centered on AI can solve the problems in a humane way ?. https://ameblo.jp/lovelucifer/entry-12429842470.html

  37. I think we should introduce a tree tax where if you don’t have this many trees over this much land, you get taxed based ont he amount you don’t have so it not only encourages people to plant more trees on their land, but also adds more money for economy. We could slowly rise the amount of trees and the amount of tax over the course of several years.

  38. Governments should spend more of their own money. Taxing the wealthy more doesnt make sense and they shouldnt be forced to pay more because they have been successful. That fault lies with the government. These arms deals the US and UK does , that money should be put into spending on services etc

  39. Ban government. No need for taxes. He assumes I want more government services, then blames me for not wanting to pay higher taxes. I don't want more government services, or more government of any kind. Lower taxes, then get rid of any and all government that doesn't fit in the tighter budget. Politicians don't like it? Well, let's sit down for a little tea party and discuss it.

  40. Your whole basis for this argument is that we need more tax revenue because of an aging population. You dont if the aging population planed for the future and saved.

  41. So in other words all you are really saying is you want to steal peoples property again to further enslave them. You just make the illusion that they own it. Let me guess we need to introduce a tax for clean air and water to ensure everyone can breath properly thanks to government protection

  42. So if I have a rental property I should be taxed more? I would be probably forced to raise the rent on people who can’t afford the increase. Here’s a thought, why not make the government much smaller and stop supporting hundreds of people in 1% with our hard earned money?

  43. By stating if elected president, they would pay for health insurance for illegal immigrants, each and every Democrat running for president has obviously admitted there is way, way, way too much tax revenue and no excuse not to cut taxes for every single American.

  44. This clip was pointless. It also doesn't address the MANY problems with what the government does with tax revenue now which is waste it on epic scales.

  45. Britain isn’t a communist country. If we made obese, smokers, drunkards, and druggies pay for their hospital bills, the NHS would literally billions per year. That could go into child poverty and making sure they all get 3 meals a day. Or into helping the homeless

  46. Why not just get the government to stop spending money on stupid stuff like watching a shrimp on a treadmill

  47. Everyone should pay a flat tax rate. You shouldn't be rewarded for not producing and you shouldn't be punished for producing.

  48. I'm not into taxing the rich higher BUT to make them pay the same rate as middle class people do WITHOUT their business deductions and loopholes that can lower their payments or exempt them from paying taxes at all. That's just fair. Right now, middle class people are actually paying more taxes under Trump's tax scam while millionaires and billionaires don't have to pay anything. Smh

  49. Stop crying about why the rich should pay more taxes. Why not instead appreciate that they are paying for all your shit? Keep trying to raise the taxes lol because when the rich leave whose going to pay for your shit then?

  50. Never understood why corporations and the individuals who own the corporations are getting both tax cuts.
    I personally have no issue with corporations receiving a tax cut. But those corporations who receive a corporate tax break, should not receive an individual tax cut

  51. We don't need to get the taxes to be lower for people, we need to get the people to be able to afford the tax… so we should lower taxes and keep big corporations in the US so more jobs can be maintained and more people are able to afford the tax. increasing tax would drive out business, drive out jobs, and ultimately be a short term fix with long term consequences.

  52. Currently America is in trillions of debt. The US spends its bulk of their revenue on healthcare, welfare, social security, the government is basically spending their money to take care of their aging boomer population. I’m not saying we should kill all of the boomers, but what I am saying is once all of the boomers are dead, the government cam finally stop paying to keep the boomers alive! What I am saying, for now, we should cut welfare, healthcare and social security benefits for the next generation because people are living longer. Hopefully the government can finally start paying off their debt by then.

  53. Flat tax for all.
    Only ethical way to deal with income tax.
    Disagree? Please tell me why its fair to tax someone more (by percentage), on the principle that they earned more money in the exact same free market economy you have the right to contend with

  54. Why don't we just get the government out of those things, and leave them to the individuals to solve? They'd make better roads, healthcare plans, they've already improved numerous other things, and the government has been shown time and time again to waste our money and make things worse…why not just get the government out of all of this stuff they clearly don't need to be involved in?

  55. If labour win the election (2019) then all the billionaires say they will leave the country. That’s quite funny is it not? If your income is 2 million a year and a tax of 50% is introduced then I think you’ll be ok living off £1mill a year… that’s still £83,000 a month…. oh poor poor millionaires and billionaires…. however will they cope…. greedy AF. Tax the Rich and spread the wealth.

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