Taxes are confusing for a good number of people, but we pay them anyway, and we think raising taxes is a bad thing based on how a tax hike would affect our personal finances. But no one really explains how having higher taxes for extremely wealthy people doesn’t trickle down to mean higher taxes for lower tax brackets.
Apparently, the top earners used to pay up to 90% in taxes, and it helped stimulate the economy and create infrastructure in a way that hasn’t been seen since. There has not been much of an effort to make taxes less confusing, so hearing the breakdown of how these absurdly high tax rates are helpful is refreshing.
Jordan Waggoner, who goes by @off_jawaggon on TikTok, often creates videos of him musing about policies, historical events and U.S. presidents. In a recent video, he explained how heavy taxing on the extremely wealthy actually works and people are thanking him for the easily digestible lesson.
The seven-minute video even had CPAs applauding his ability to explain such a highly confusing topic with immense accuracy. Waggoner is responding to a comment that says in part, “Tax cuts are the way out of our financial problems.” Instead of dismissing the comment, he explains exactly how tax cuts are harmful and it turned out to be a lesson a lot of people could benefit from, even if on its face it sounds ridiculous.
“In fact, not only does higher top tax rate not kill jobs and stifle spending, it creates jobs and promotes spending,” Waggoner says before explaining further. “When you hear that we should raise the marginal tax rate on top earners to 50, 70, 90 percent, that sounds insane because if we apply it to if we were paying that, that means that we would be paying that much percentage of our income to the government. And that does seem pretty ridiculous from pretty much anybody’s perspective.”
Yes, it does sound ridiculous at the start of the video, but the business owner goes on to explain in detail how it actually helps, answering most questions that pop into your head about how it works. You can watch the entire video below.
@off_jawaggon Replying to @CG higher taxes stimulate the economy… and if you think about it for even a minute it makes sense as to why. #taxtherich #eattherich #taxes #economy #economics #jobs #history #reagan #poltics #conservative #liberal #fyp
Source: https://www.upworthy.com/man-explain-90-percent-tax-rate
