While I think that there is plenty of room for people all over the political spectrum to debate tax policy, I do get irritated when someone argues that a few point increase of the top marginal tax rate for the wealthiest Americans would be an enormous hardship. Though I’d never waste the breath arguing for it a serious policy proposal, as a matter of principal I believe that even a 90% effective tax rate on those earning a million or more dollars per year could be reasonable, and I am willing to put my financial security on the line to prove it.
I’ll need a rich person to give me $100,000 per year. This will represent the 10% I would have left after taxes were I a millionaire paying taxes at a 90% rate. Actually, since the IRS is not a part of this grand experiment, I’ll need more like 120-130k, since I will have to pay actual taxes on this income, and the point of the experiment is not to test a 93% tax rate on millionaires. We can set up a spreadsheet and work out the details once the rich person steps up; the point is that I net $100,000 a year.
Here’s the important part: I will have no other source of income. I will not work at all. Let me be absolutely clear on that: I will not agree to do anything I don’t want to do in return for money. I will survive only on the $100,000 per year given to me unconditionally by a rich person. I will not touch my savings. I will not accept gifts or handouts. I will purchase my health insurance at full retail cost. I will in no way lower my standard of living. To counter arguments that my not having a job artificially lowers my transportation expenses, I will frequently travel for pleasure. To fulfill my role as job creator, I will eat out a lot and buy at least $100 worth of board games per month. I will also hire someone to mow my lawn.
I do not want to be accused of living on the financial razor’s edge for a year and then using it to score a political point, so I will commit to this arrangement for at least five years; if the person providing my income needs more convincing, I’m willing to do it for longer. If some other rich person is unconvinced at wishes to take over after the allotted period, I am willing to stay at it for as long as it takes.
And if anyone is interested in investigating a 99% rate on billionaires, I’m up for that too.
