Quote: (10-03-2011 09:11 AM)Gmac Wrote:
It's a hater's mindset, this taxing the wealthy thing.
First of all, the $250k - Sub $1M club isn't wealthy. Not in 2011. Higher taxes actually do more harm than good. Why?
This $250k thing being not much money keeps being brought up. Well keep in mind if your household makes $250k a year, you are in the top 4% of households. The reason they probably don't feel like they make much is because most Americans spend up to their income limit and max out their paycheck at whatever level they are making so they never "feel" rich. Look up Parkinson's law.
Also don't forget that we have a graduated tax structure. Just because the tax rate for $250k is X doesn't mean the whole $250k will be taxed at X. You will only pay that amount on the portion of your income that is $250k or above. So you will have one taxed at rate A for the part that's up to $50k, taxed at rate B for the $50-100k part, taxed at C for the part that's 100-150k.
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It's also as if people think those with large incomes are just hoarding their money away. No, lower taxes means they are SPENDING more of their disposable incomes, which drives the economy by putting money back into businesses, creating jobs, boosting tourism, etc.
If you're talking about mega wealthy people they most certainly are hoarding it away. If they were spending it all, then wealth wouldn't be so concentrated. It would be "trickling down". Which is not what is happening.
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What is the government going to do with their money? Waste it all away on worthless secret projects, reforms that don't work, and 1000 page pork-barrel bills.
Well, a balanced budget for one thing without having to cut into things like social security and fire teachers and let bridges and roads and levies crumble because there's no money.