Originally Posted by Droid101
I know! It's so hard being rich, right!? It's so much easier being poor and living on free food stamps from the government!
I didn't say it's easy to be poor, and I do not villify the poor. I for one grew up in a lower income family. I do not trivialize the difficult of growing up without a lot of money.
I am just talking about the reality of the situation. If all income above $250,000 is taxed at 50%, less people will strive to earn $250,000 than if the tax was 0%. If you raise the tax to 60%, even less people will strive for $250,000. Why put all the time and effort into building a business if the government is just going to tax half your income?
"Yeah but rich people only pay like 2 cents in taxes in America!"
Non-sense. Some do, if they earn their money off of dividends. But don't forget, those dividends were already taxed when the corporation paid their 35% tax. So though the dividends are only taxed at like 12%, they were already taxed once before at a much higher rate. Add them up, and the true rate is much higher than any secretary pays (and Warren Buffet is full of you-know-what).
And if you run a business, and thus earn "income" as opposed to dividends, you are paying 35% in taxes. Add to that your state tax, entitlement tax, sales tax, and you're approaching 50% taxes, or even higher in some states! Half of the money that you worked your ass off to earn... gone. Why do we want to do this to rich business people? These are people that create jobs, provide services, truly add value to society... and we punish them by taking half of their money. Forget how the rich person feels about this, why should even the POOR feel good about this? It's not to our advantage to treat rich people like this, just from a practical standpoint. We want these guys creating jobs and inventing new products for us to use. We don't want them giving half of their money to Washington, so they can blow it on drone strikes and dimwit regulators salary.