Japan has lots of assets like a massive sovereign wealth fund. When you subtract these assets from their debts, their debt to GDP ratio is 77%, which isn’t that high.
Japan takes money from its people in the form of taxes and then invests in assets like US treasury bonds. Because their currency depreciated over time, their debt has become worth less, while their foreign assets have become worth more.
This has benefited Japan a lot, but may backfire if the Yen goes up, foreign interest rates lower, or Japanese interest rates rise. If Japan has inflation, this could force them to raise interest rates or live with inflation.
The very wealthiest of Americans are not making money from work. Their wealth grows by capital appreciation, and they pay very little tax on that income. The estate tax is supposed to capture this at death, but it is riddled with loopholes.
It’s extremely unfair and makes the national debt worse.
“Trump sued the IRS and the Treasury Department for $10 billion in January, accusing the agencies of failing to prevent a leak of the president’s tax information during his first term.
The DOJ is now holding internal discussions about potentially settling the case
…
This is a novel case given that Trump oversees the IRS, and two parties in a lawsuit must be on opposite sides.”
We’ve got to be able to have fair, reasonable ways to tax the super wealthy without demonizing them.
The wealthy pay a lot, however, due to how incredibly much they have, and inequality, they still don’t pay their fair share. The goal of taxation is to pay for government in the least harmful way possible, not to liquidate the rich. Fair taxation and reasonable welfare policy is good. Class warfare is evil. A society that taxes in order to end billionaires, or that uses rhetoric that endangers the wealthy, will be a violent and repressive society–either because the masses will turn authoritarian and violent, or because the wealthy will out of fear.
“the president and his political allies flooded the ordinarily sleepy state legislative primaries — where the spending is typically in the tens of thousands and primary votes cast number about 10,000 to 12,000 — with millions of dollars in advertising casting the incumbents as disloyal to Trump and blaming them for voters’ various frustrations, particularly property taxes.
Trump’s approval rating has slipped nationally, and his support among independents has evaporated. But very conservative voters — those who make up his base — are still with him. And they are the voters who decide contests like state Senate primaries in deep-red Indiana.”
Jeff Bezos pays himself an 82k salary even though he is the head of a massive company, Amazon, but he is fabulously wealthy through his stock, which he can use to take out loans tax free. So, he lives a tremendously wealthy lifestyle while paying very little taxes. This is legal. The estate tax is supposed to make up for this, but it is riddled with loopholes.
“Quality of services in many cases declined. It’s clear, for example, that there was a shift in fire protection away from professional fire departments and toward volunteer fire departments in some parts of the state.
It hurt the schools. School finance has continued to, of course, increase in California as it has elsewhere in the US, but California used to be at the top in terms of quality of education in primary and secondary education and in terms of school spending. And now it’s definitely not.
It has hurt the quality of infrastructure — potholes in the roads, response times of first responders. It has shifted the state tax structure onto income taxes, which means that the tax system in California is really swingy — in a boom, a lot of money might flow into the state’s coffers, and in a recession, the state budget really suffers. During the financial crisis, this meant that local governments that could no longer rely on a lot of property tax revenue were especially vulnerable to bankruptcy.
It has also created all kinds of unfairness — new unfairness, rather unlike the old system. Now you might actually pay a lot more tax than somebody else in your neighborhood who has an identical home worth the same amount of money, just because they bought their home earlier than you did. And they might agree that that’s unfair, but they might not vote to change it because it’s an unfairness that allows them to stay in their home.”