Tax the rich

In what will come as no surprise to anyone, the Republicans have
started complaining about the end of the Bush-era tax cuts again after
Obama flat refused to renew them. It makes sense to me that if you
earn more, you pay more in taxes. That's what is proposed to help out
the national debt. The Republicans however think that taxes should be
cut further for the rich whilst healthcare costs should go up for the
poor and elderly. At it's best, that is crazy. At it's worst that is
destructive to the country. They argue that taxing the rich will
reduce jobs because they equate rich individuals with companies. No.
One of my super wealthy lunchmates does not employ anyone. He is
simply wealthier than average and so should pay more in taxes. How
difficult is that to understand? Apparently it's impossible for the
GOP to understand because all they care about is war, protecting the
rich and safeguarding corrupt corporations.
The GOP want less government spending and want the economy to recover.
We all do. The difference is that their methodology is fundamentally
flawed. Cutting taxes to the richest people won't make the government
any more money or create any new jobs. Everyone is getting very bent
out of shape over this when in reality it only affects families with
an income over $250,000 a year. Within my circle of friends in four
different countries, not one of them or their families earns even
close to that amount yet the Republicans insist that these tax hikes
will affect "just about everybody". Do you earn over a quarter of a
million a year? If so, can I have some? I have a car and a house to
pay off.....

Comments

Anonymous said…
What you are proposing is called "progressive taxation" and is not very well thought out method of taxation.
Tax rate should be equal for everyone, and there should be a minimum non-taxable income.
Progressive taxation can be seen as a form of punishment for earning more than average, and creates incentive for the rich to create schemes to hide taxable income, causing more work for law enforcement officials to uncover and prosecute such schemes, meaning that more tax money is spent on enforcing taxation.
Minimum non-taxable income is a method for reduction of tax pressure for low-income persons. Minimum non-taxable income is the amount of income that is not taxed, and is subtracted from taxable income, so that if you earn less or equal to the non-taxable income level, you get to pay no taxes, also meaning that only the amount above the non-taxable income gets taxed.
It is a self-regulating method of supporting low-income population.
Of course, it is naive to think that such method of taxation will ever work in the US, as it would immediately be declared "socialist".
07:54
Chris said…
The overly rich have a propensity to hide their money no matter what the tax rate. I take the view that if you earn more, you are morally responsible to pay more towards the common good. The idea of a minimum salary below which you are not taxed is flawed for two reasons. First, everyone would strive to get jobs just below that level so they never had to pay tax. And second, the Republicans would lobby to have that minimum rate be some enormous amount. In both cases you end up with a populous paying no tax at all. The Americans would do well to look at England where they're terrified of raising taxes so they slashed government spending to the point where it has accelerated the economic crisis. Politicians just need to accept that there are times when you have to raise taxes to make ends meet, and the public need to understand that too. I'm sure Repulicans up and down the country will cheer the idea of no tax hike and a cut in government spending right up to the point where it affects them. Like they can't get into a national park, or their social security check doesn't get processed. Then they'll be the first to complain.
09:37
Chris said…
One other thing that would never be considered because of its simplicity: flat rate tax. Everyone pays 10%. The entire tax code could be reduced to one line of text on a single sheet of paper:

"Everyone who earns an income pays a flat rate of tax of 10%, no exceptions."
09:49
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