On Thu, Mar 12, 2009 at 2:00 PM, XX wrote:
> There needs to be a examination of the cost of government compared to the
> output
> of it's citizens. When Gov't expenses go to high, taxes go up, workers are
> likely to balk at improving their income.
> It will cease to be an issue, because we are approaching 50% of our voters
> not paying any federal tax. That means they will decide to increase taxes on those who do pay.
>
> Notice how "the wealthy" are now paid less and less. Now it's about $250K.
> In a previous Democratic administration, a Millionaire was someone that
> earned a million
> dollars in their life time.
>
Ah, another Red Herring. "If you raise taxes too high, people will just refuse to work."
This reflects an *aggregious* mis-understanding of the tax code.
Let's say, for example that you make $100. Let's say that the tax rate is 40% up to and including $100, and 50% for $101 and up.
So, when you make $102, what is your tax?
A) $102 * 0.5 = $51
B) ($100 * 0.4) + ( $2 * 0.5 ) = $40 + $1 = $41
We have a *staged* tax system. The answer in 'B'.
I've not heard of a single extremely-rich person (we used to call them "millionaires") that's in it for the money. I doubt there's a single one that says, "You know, I've made enough money, why don't I stop for a while?" or "You know, if I make over X, it'll just send me into the next tax bracket. No thanks."
The only people we hear talking about this is A) Republican talking heads B) People who *want* to be millionaires, but don't even understand the basics of finance enough to become rich, let alone millionaires.
Show me one instance in which Warren Buffet said, "No more money for me! I don't want to be in the next tax bracket."
Rich people will turn all sorts of tricks to avoid paying taxes. They may *defer* income into "down" years or whatnot, but I'd like to see one case of a truly "rich" person refusing the opportunity to make money because it would kick them into the next income tax bracket.
I never cease to get amusement out of middle-class Republicans that will bend over backwards to screw themselves in order to save "the rich" money.
A much better avenue of attack would be chasing down that 50% that doesn't pay taxes.
Lemme propose a test:
Let's say someone approaches you on the street and says, "If you give me a nickel, I'll give you $250k, but you must give 75% of it to a random passer-by."
Do you accept or no?
A final point. I *used* to be in the $250,000 bracket. I'll *gladly* pay whatever tax Obama wants rather than continue to "save tax money" under the W administration. I'm tired of this "American's don't want to work (because taxes are too high)" bullshit.