deal with the state debt." Well, guess what's happened? That's what happened this year. There was an increase in the state income tax of two percent for four years and then it'll drop back down to 3.75 percent.We have a set rate in Illinois as you know. But we haven't financed or reformed how we finance public education. In the meantime we have to take care of business here in District
They named them "Jesse checks." And I did it even over the, you'd think the Republicans would have gone with me all the way, but they wanted it to be an income tax rebate. Well, an income tax rebate means you gotta declare it, which means then it's part of your income which means the federal government's gonna take a third of it. And I thought, "This isn't the Feds money, it's ours." So I did it. It was successful in a sales tax rebate because you can't deduct a sales tax so therefore, they can't take the money. So when you got
See, he suspected there might be a hidden pattern in how much money people make. So he gathered income tax records from Italy, England, France, and other European countries, and for each country he plotted the distribution of income. Each country he looked at, he saw the same pattern, a pattern which still holds in most countries to this day, and it's not a normal distribution.
That's part of the reason why they proposed this wealth tax. But they do pay income tax . You kind of have to take into account the loss of income taxes that you'll have if billionaires leave the state in response to that. And that's not something
It's one monthly payment and one student loan servicer. would owe income tax , potentially, on the amount that's forgiven.
Based off of exploring that story, do you feel like tech platforms have a responsibility to curb or curtail that sort of content? on which income tax hasn't been paid, and B, to move India towards digital payments.
So a lot of our clients just leave the debt in their personal name, transfer title, keep paying the debt, and that's not an issue. What's the best income tax strategy for high-earned income employees here?
It's not necessarily something that's just illegal itself, right? There was no national income tax until early in the 20th century.
Just a little over 10 years ago, 2001, the US had a large surplus. There's no income tax that will ever change that inequality.
Now my whole life was about tax fairness. That's why I got on the Ways and Means as a member of the House in Congress. And workin' for President Clinton, President Obama, I doubled the earned income tax credit. And not only doubled it and fought Republican's attempts to fight it, in my office we used it with the tax assistance program to fill out tax forms for working poor 'cause I fundamentally in the marrow of my bones believe if you're
Eventually, in order to consume this money, it eventually has to be realized So that means 14% of this wealth will eventually be collected by the state of California in income tax . So that number is $270 billion.
billion dollar number? And also, those people pay income taxes Year after year. They don't pay as much income tax as the proponents would like. That's part of the reason why they proposed this wealth tax.
yes, positive, beneficial, but it is not truly transformative. But they wanted it to be an income tax rebate. Well, an income tax rebate means you got to declare it, which means then it's part of your income, which means the federal government's going
The Eastern Band of Cherokee have one. And then majorly there's the Earned Income Tax Credit. We have the largest cash-transfer program in the world.
But the rest of the time I was completely dependent upon all the friends of mine who are doing so well now. Some of them are into income tax on a big post. One of them is the Indian ambassador in Mexico.
generally you need to think about how we construct an income supplement that works much better than the earned income tax credit and also what might be called and is called a lot of things but a guaranteed minimum income in the future we are also going to have to get
universal basic income there's also something that needs to be expanded right now and can be we don't have to wait to the universal basic income and that's called a earned income tax credit that is a wage subsidy and if you have the hardest problem has to do with groups of
So a lot of our clients just leave the debt in their personal name, transfer title, keep paying the debt, and that's not an issue. So we're just paying ordinary income tax on the sale of real estate.
to play that game still? You know there’s no income tax , State income tax in Miami, there’s no-there’s all these things, right. He’s probably spent so much money in bottle services in the clubs that
They're coming in to teach them about income tax , property tax, about interest rates.
But they wanted it to be an income tax rebate. Well, an income tax rebate means you got to declare it, which means then it's part of your income, which means the federal government's going to take a third of it.
It's one monthly payment and one student loan servicer. But then you also could be liable for income tax payment on that amount forgiven.
Well, why don't we go right into your policy prescription for this? So you have an idea about expanding the Earned Income Tax Credit so that every working American who lives in a household earning less than $50,000 a year could receive a guaranteed income of at least $500 a month.
And it can be the kind of thing that we do. So we can talk a little bit about the Earned Income Tax Credit and the frameworks, but at the end of the day what I'm interested in is embracing the dignity and the freedom that I think everybody should have to be able to figure out
Certainly make sure that there's room for healthy debate of political kinds of issues, Whereas if you talk about a monthly earned income tax credit-- many of them were single moms-- that recognizes what they were
don't have that kind of person and you're raising not only that problem but an even bigger problem and every everything that they are entitled to food stamps Earned Income Tax Credit
Well, years ago I advocated for that and when I was advocating for that shifting, I said, "We ought to do it now because the day's going to come, given the state's track record, when we're going to end up seeing an increase in the income tax and it's not gonna go for education and we're not gonna be able to do that shift because the money's going to be needed to deal with the state debt." Well, guess what's happened? That's what happened this year. There was an increase in the state
because it's tax deductible uh on your income tax but that doesn't help
California is approximately 14%. Now, even though it is an income tax , capital gains are taxed as an income tax . Eventually, in order to consume this money, it eventually has to be realized So that means 14% of this wealth will eventually be
There's a history of having arbitrary cutoff numbers in other parts of the tax code. Yeah. California and other states have a millionaire income tax , so if you earn more than $1 million per year, there's an additional 1% surcharge on that. So there is a history of that.
And then, okay, that doesn't even consider the lost income taxes from these people. So again, they're not paying as much income tax as the proponents would like. But they are paying several billion dollars per year to the state in income tax .
So again, they're not paying as much income tax as the proponents would like. But they are paying several billion dollars per year to the state in income tax . We estimate around four or five billion dollars per year in personal income tax .
But they are paying several billion dollars per year to the state in income tax . We estimate around four or five billion dollars per year in personal income tax . And so when you consider the fact that the state loses those individuals and that stream of income tax , you've got to take a present value of that thing and ask,
I think we need to make a down payment. We can and should make a down payment today in modernizing the Earned Income Tax Credit, making it monthly, creating a kind of guaranteed income for a lot of people.
Certainly make sure that there's room for healthy debate of political kinds of issues, So there are EITCs, earned income tax credits, in the states.
Yeah. And EITC is their earned income tax credit.
don't have that kind of person and you're raising not only that problem but an even bigger problem and not doing it we should be earlier you were talking about the earned income tax credit and how it's not sufficient um
don't have that kind of person and you're raising not only that problem but an even bigger problem and there's a big industry uh that rakes off a lot of that Earned Income Tax Credit
in one pocket and you immediately had to pay all of it back out in income tax , what would be the point of even working? You might as well just forget about it, just go to the
the Fed, ended up creating the graduated income tax , created fair labor standards, strengthened antitrust legislation.
Now I say that advisedly because the Bush tax cuts really did make the income tax system more regressive.
people in filing RTI applications about 22,000 people filed RTI applications asking for their income tax refunds
And we're going to teach them about finances, and income tax , and property tax on that board through what they learned in the morning.
We don't know that number exactly. What we do know is that the top 1% of taxpayers are paying well over 40% of the income tax in California. What people have focused on more and have done sort of a better job of estimating is people are very concerned about what share
We estimate around four or five billion dollars per year in personal income tax . And so when you consider the fact that the state loses those individuals and that stream of income tax , you've got to take a present value of that thing and ask, "Okay," what's the lost present value?" It's hard to come up with scenarios where California comes out of this net positive.
It's one monthly payment and one student loan servicer. But just be aware of that, that there is that income tax component for all the income-driven repayment plans.
The government actually has access to all your health information, and all your income tax information and all these things.
Thank you. And yeah, some of the negative income tax experiments in the 70s seemed at first to suggest that divorce rates went up.
don't have that kind of person and you're raising not only that problem but an even bigger problem and could you talk about what's wrong with it and I explain it in the problems yeah the ored income tax credit uh the three
don't have that kind of person and you're raising not only that problem but an even bigger problem and and thirdly most people many people about half the people who are entitled to the Earned Income Tax Credit don't even know they're entitled and so