Even with my aversion to posting in "Around the Water Cooler" I would like to give my thoughts (hopefully based on facts) on income taxes. I believe I have some limited expertise in this area since I not only have an MBA from M'Boro's most prestigious university but also I have been investing for almost as long as I have been a Blue Raider fan (thanks to wise council from my Dad). I don't consider my self wealthy but admit I am what I describe as "reasonably well off". My investments include real estate, stocks, bonds, mutual funds, index funds, and investment trusts. For several years my income from investments has exceeded my earned income (in part because of the low-paying career I was in before retiring). I am a conservative buy-and-hold investor: My investment counselor (BTW a former MT econ. prof.) says I get married to my investments.
My first point would be that there is so much inaccurate information floating around regarding taxes. I remember clearly when those friends who did not go to college were first filing tax returns there was much talk of keeping out of the next tax bracket. Only when I started out filing my own taxes rather than letting my Dad do it did I put the numbers to the tax brackets and understand that "marginal" taxes meant that a tax-payer never lost money by having more income.
In virtually all instances the "effective" tax rate is lower (often much lower - even sometimes zero on huge corporate profits) than the marginal or advertised tax rate for both individuals and corporations. (part if this difference is due to the loopholes in the tax code) A talking point in favor of the Trump tax cuts was that the United States had the highest corporate tax rates in the world. True, when looking at the advertised rate but in actuality the United States' effective tax rate for corporations was in the middle when compared to all industrialized nations.
As for $$$s being taxed twice. Only the income (or if you sell - the increase in value) of an investment is subject to tax. The principle is never taxed again. Even inheritance taxes would not tax the moneys again, except for the super-wealthy, since most assets are inherited at a "stepped-up" value (a huge tax-advantaged way to increase your descendants prospects). Additionally, even if an investment is sold the increase in value is taxed at capital gains rates which are usually much less than income tax rates. Yes, some investments may lose $$$s but these losses can often be used to offset gains.
Tax policy is an interesting topic and I admit I spend way too much time studying it. It must be said that human nature being what it is most people believe they are taxed too much and that other people pay too little (similarly it's common to believe one is paid too little for his labor and others are paid too much).
So many questions arise when looking for fairness in the tax code: Should labor and unearned income be taxed at the same rate? Is unearned income from investments the same as from inherited investments? What should be promoted through the tax code (religious affiliation, charitable contributions, home ownership, etc.)? Should the tax code reward saving, living "below your means", and accepting personal responsibility for yours' and your descendants' future? How do you make it fair to those who have limited means to improve their financial situation? How should the tax brackets be broken down and what is a reasonable rate for each bracket? and so many more issues.
The only way to effectively look at taxes is to remove yourself from your present financial position and your political persuasion. That's damn hard to do.
(As an aside: I trust this post is not affected by my admitted liberal leanings and that it is not perceived as an effort to "talk down" to any reader. I am just trying to clear up what appear to be some misconceptions)