Redistribution of Wealth

------------------------------------------------------------------------------------------------------------ R1: Excessive Taxation has Disadvantages "It is a well-known historical fact of economics that, even when corporations are taxed at supposedly exorbitant rates (e. g. , about 90% under FDR), American industry nevertheless thrives" First, effective corporate income taxes haven't exceeded 50% [1]. This exorbitant rate was also when the U. S. economy was a global behemoth, accounting for almost 1/3rd of global GDP [2]. Second, the extreme tax rates you are talking about applied to individuals, not corporations. "realistically, nobody with a billion-dollar idea is going to forgo pursuit of it simply because, after all is said and done, all taxes are paid and debts are settled, s/he'll be left with "only" a paltry, say, $78,000,000" Capitalism is fueled by the profit motive. Enterprises and individuals supply each other with goods and services because of the rewards provided by the market. Individuals and enterprises take risks all the time. Profit is the payoff of sound risk management. If a large corporation or a taxpayer had to pay 90% of their income to the government, profitable ventures would be less likely to occur. The potential payoff would be significantly lower, which would encourage investors to direct their funds towards stable, blue-chip accounts. Consequently, awe-inspiring yet unproven ventures would suffer because the reward (say, 9% of the profit after your proposed taxes) would not justify the potential risks. I'll lay out my basic arguments. ------------------------------------------------------------------------------------------------------------ C1: High Taxes are Immoral The market economy rewards enterprises and individuals with equivalent earnings. When the government imposes excessive taxes, it is essentially robbing the individual of their earnings, and instead consuming the fruit of the man's labor for its selfish purposes. A slight degree of taxation is indeed justified, but when a government decides to tax excessively, it robs its citizens of their livelihood, and therefore degrades a man of his dignity and his freedom. ------------------------------------------------------------------------------------------------------------ C2: High Taxes are Shortsighted The 21st century has an interdependent global economy. Capital (human, financial, physical) is highly movable. Let's compare two nations, the United States and China. The U. S. has a corporate income tax of 35%, while China has a corporate income tax of 25% [3]. A nation's corporate income tax rate heavily influences corporate headquarters location. If Apple moved its corporate headquarters to China, it would essentially get paid $4.7 billion by the Chinese government (let's call it a corporate tax refund) [4]. If the U. S. decides to impose sky-high taxes, individuals and corporations will leave our nation, depriving America of both tax revenues, human capital, and innovation. Indeed, since 2012, over 21 U. S. companies have relocated their corporate headquarters outside of America [5]. America's personal income tax system has reached this point. However, California can provide a microsized example of what could happen -- more individuals are leaving this state than moving in [6]. Nations such as Great Britain and France are losing their most-talented workers because of their comparatively high income taxes [7]. I feel like my opponent won't respond, so I'll summarize my case with my arguments against redistribtion: - High Taxes are Immoral - High Taxes generate perverse incentives - High Taxes encourage "Brain Drain" - High Taxes suffocate Economic Growth - High Taxes obstruct entrepreneurship and innovation ------------------------------------------------------------------------------------------------------------ Sources [1] (. http://en.wikipedia.org...) [2] (. http://economix.blogs.nytimes.com...) [3] (. http://en.wikipedia.org...) [4] (. http://www.techtimes.com...) [5] (. http://washpost.bloomberg.com...) [6] (. http://www.huffingtonpost.com...) [7] (. http://reason.com...)