LordsFire
Internet Wizard
That's not the question you should be asking. What you should be asking is "why are some people benefiting drastically more than others? Particularly ones at the top who, quite frankly, have done nothing to earn a paycheck worth over a hundred times more that someone in the same position would have earned several decades ago, when positions under them in the corporate hierarchy have not experienced such massive exponential growth in earnings?"
The pie has grown, but so has the portion taken by those on top; and expecting those who's slice keeps getting smaller and smaller comparatively to not become resentful, when it's also thanks to their efforts that the pie is bigger than it used to be, is utterly insane.
I don't know. I just take issue with them taking advantage of ways to reduce the money they pay, that they only have access to because of how much money they have. And I know they do this, because we keep hearing about it; and I doubt you're delusional enough to insist that, say, tax havens are not a thing the rich constantly use to avoid paying taxes. I mean; the IRS specifically points out that this is a thing that actually happens, and is frequent enough to be a serious problem.
It'll take about four minutes to get through the section that covers this. The entire video is worth watching though.
Now I'll be perfectly clear. I favor a flat tax rate, that has no exceptions or exemptions whatsoever. Of preference, I'd favor switching entirely over to a sales tax, and then we can just not tax food items, as a form of government pseudo-charity that even small-government types like myself can support. I'd settle for a flat tax with no exceptions though.
That said. Whatever loopholes and legal rigamarole wealthy people use, the fact remains that statistically, they're the only ones paying taxes in the first place.
Great, they're paying accountants and lawyers to keep themselves from having to pay more, but I cannot emphasize this enough:
With statistically few exceptions, only upper-income people are effectively paying taxes at all.
Let's be clear. I personally am one of those exceptions. I have not made enough income to get out of the bottom 20% bracket in my entire life. I might eek up into the second quintile this year, we'll see how I do over the next two months. Yet, I still paid more than 10% in effective total taxes last year, entirely in social security ~medicaid stuff. Further, I have to go through the more complicated (and expensive) process of handling my taxes as someone self-employed, adding a further burden onto myself.
All that said, I still stand firmly on the position of 'If everyone is doing better, why do you care if some are doing even better than others?' The answer is, so long as they're not doing anything illegal/immoral, you shouldn't.
Now to address your direct question:
"why are some people benefiting drastically more than others? "
The answer is simply that those people are by and large working harder. This is not always true, and some people absolutely coast on what they inherited from their parents, and that's rather shameful, but nothing illegal. It's also true that some people at the top of society are very wealthy for very immoral reasons. This is a problem, and I absolutely favor changing legal codes to deal with this, but to those who understand how human psychology, economics, regulatory capture, and such things work, the solution is less taxation and regulation, not more.
The exceptions and those who abuse the system aside though, I can absolutely tell you that the single largest reason most poor people are poor, is they make bad life decisions. I say this as someone who is lower-class, who has lived amongst lower-class people, and watched how they live their lives. In the less-bad cases, it's simply the refusal to show up on time and work even decently hard at a job.
People who show up, work hard, and are smart enough to not let a bad boss take advantage of them, sooner or later almost universally start moving up. Yes, there are some exceptions to that, but you don't re-engineer the whole system for rare exceptions, you help those rare exceptions on an individual basis.
I have seen far too many people who literally cannot hold a night-shift job where all they'd need to do to keep the job, is put their damn phone down when a customer is right in front of them, and handle a transaction. If they goofed off the entire rest of the time, the boss wouldn't be happy, but they'd keep them around because the minimum requirements were being met.
People who show up to work drunk, high, who don't show up because they're drunk or high, people who just don't show up, people who show up and constantly cause problems...
Most of the people who are perpetually stuck in the lower class, are there because they are sabotaging themselves.
Yes, there are people who fall on rough circumstances, but if they keep putting themselves out there, and putting effort in, and are willing to make some sacrifices (such as move out of the area they would prefer to live in to a place with a better job market), they almost universally will get back on their feet and get moving again. Yes, again, you will find some rare exceptions that fall through the cracks, but that will happen in literally any system.
Most people who work comfortable, well-paying upper-middle & upper class jobs? They're there because they work hard. Yes, a lot are also there because parents raised them well, and helped them get through college to get into those jobs, but they keep those jobs and move up through the career path because they work well enough to earn that. And yes, there are exceptions with nepotism, corruption, etc, but those are the exceptions, not the rule.
That's why some people are so much more well-off than others.
And it's the other side of why I think the solution to how much taxes the rich are paying isn't to close loopholes, but to simplify the tax code and cut taxes in the process.