Thursday, March 12, 2009

Saving the Rich

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 is '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.

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