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Old 11-18-2012, 01:08 AM   #163
joe
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Default Re: Romney says Obama won by showering black, Latino & young voters with big gifts.

Quote:
Originally Posted by bladefd
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?

Not all rich are taxed at 50%, but some are. If you own a business, or earn your money through income, that's where the truly high tax rates are. I'll explain how. The corporate tax can vary from 15-35%, so for some they are paying 35% off the bat. Throw in medicare/medicaid, another 3-4%. And then if you live in say California, they have a 14% state income tax. Many states have 7-8% income tax. So you're up to about 45%, maybe more in some states. Throw in sales tax on everything you buy, or dividend taxes on your investments.. and you're in that 50% ballpark. Likely more for some people.

Other rich people who make all of their money through stocks are only taxed at about 12%. That's what Warren Buffet was referring to with his whole "I pay lower taxes than my secretary" bit. But in fact that's very misleading. Warren Buffet may only pay 12% on his dividends, but the corporation that pays his dividends was already taxed once, shrinking the amount of money he is able to earn from them. If they are taxed at 35%, you can really just consider that a 35% tax on Warren Buffet's dividends. Warren Buffet isn't being directly taxed, but the corporations pass those taxes on down to stockholders.
Quote:
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;

I honestly don't disagree with you. There has been a massive redistribution of wealth from the poor/middle class to the rich. But this isn't happening through free market capitalism, it's happening through government channels. When the federal reserve prints money, it lowers the value of the dollar. This affects the poor the most, since they're less likely to be holding non-dollar assets. The rich guy owns a business, he owns real estate, he owns stocks, precious metals. The poor person just has dollars, and if those are devalued, he has nothing else to fall back on. Corporations use the government to give them special powers, and pass laws that put their competitors out of business, etc, another blow to poor/middle class. The poor have been systematically attacked in this country, but the answer to that isn't to give the government more power, to pass more laws, more regulation agencies, etc. The answer is to introduce more freedom into the economy, get the government out of the way, and allow society to build itself up through market exchange. That's what I think is the best thing for the poor.
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