Originally Posted by joe
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.
Apparently, you're forgetting that ~75% of USA's net worth is in 10% of the country (top 1% has 35% of the total wealth). You can bitch all you want about taxes being unfair to the top 1% or top 5%, but you will NEVER
be able to refute the fact that the rich continue to get much richer while the rest of us are where we have been for past 30 years (or in many cases, rest of us are getting worse off).
You can complain about how we have a socialistic government or how the rich's wealth is unfairly being redistributed to the poor. The redistribution was already done and it was to the rich through policies the last 30+ years; what you're complaining about is a reredistribution to make sure nobody is unfairly treated. But here's the kicker: the rich continue to garner more and more wealth. Can you explain how if they are taxed more than half of their income? You're making it seem as if anyone making more than $250,000 is worse off than those making less. Perhaps you're forgetting the fact that a lot of them use loopholes (some legal, some illegal) to put a lot of their money in Cayman Islands or Switzerland or someplace where they can avoid paying a big chunk of their tax. What many of them are being taxed is AFTER the loopholes have been applied..
The average American making $60,000 cannot legally transfer money to Switzerland or someplace to bypass taxes that a corporate entity may be able to with legal loopholes. It would be too obvious to do it illegally if you only make $60,000 to begin with and parts of it disappear (if you're making millions, a couple $50,000 here and another $50,000 there disappearing won't be as noticeable), and it's also not cheap to run an overseas bank account. They probably cannot afford to store money overseas if most of their income is used up to pay mortgages, pay creditcard/electricity/etc bills while make a living.
You can jump up and down, scream at top of your lungs, cry or punch a wall somewhere. You will never
be able to refute that fact. That's the reality.