Comment by hermanzegerman
2 days ago
Those cutting edge cancer treatments come usually out of universities from publicly funded research.
But don't worry your free market friends are killing it right now, for tax reductions
https://www.wired.com/story/how-trump-killed-cancer-research...
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Obviously you need a strong and prosperous economy. But like you noticed yourself you also need to tax it, to deliver benefits to your population
> you also need to tax it, to deliver benefits to your population
The benefits were already delivered by that strong and prosperous economy in form of products and services.
Taxation is of course necessary to fund government spending but we need to keep in mind its drawbacks: from discouraging productive activity and slowing economic growth to giving politicians funds to buy votes with populist social policies.
Strong and prosperous economy built by progressive tax rate that used to tax up to 70% of non-work income, and now tax most of it 27-29% (depending on the corporate taxe of the state). The people who can use loopholes to avoid income taxes also pay reduced consumption tax (they usually pay the 'Use tax' rather than sale tax in the US, and can basically ignore VAT in Europe).
Americans really gloss over that the 50s was a high-water mark for both the economy and tax rates.
That's a common misconception. Although the top tax rates were indeed high, they kicked in at such high income levels and included so many deductions and loopholes that the effective tax rate were much closer to 50%.
And it makes sense, considering human nature and motivation: how much would you work considering the taxation? Me:
0-20%: I work as hard, want to excel and advance; I will take risks and invest in entrepreneurial endeavors
20-40%: I will do my duty, 9-5 then hit the door to spend time with the family; actively seek low-responsibility low risk high stability and lots of benefits government jobs
>40%: f that s, I will take my welfare payments and do various cash jobs without declaring that income; stay in my parents basement playing Xbox, smoking weed and jerking off
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Sure, capitalism isn't perfect. No economic system is, mainly because they're all composed of us semi-evolved chimps. Every economic system has that problem. Getting rid of or severely constraining economic freedoms isn't a solution, it makes it worse.
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And Trumps economy is doing well?
Yes, his personal economy is prosperous. Oh, the other one? /s
https://www.forbes.com/sites/danalexander/article/the-defini...
Most of his added wealth comes from "crypto" and name licensing.