Posted on 12/17/2010 7:06:26 AM PST by bsaunders
We keep hearing the argument that we have to tax the rich. We hear how the rich have all this wealth and that because of their great amounts of wealth; they can afford to pay more taxes. But here is the problem; we tax income, not wealth. Here is an example that will hopefully clarify the situation. We have two families. The first family has five million dollars in savings accounts in numerous banks earning two per cent interest and no other income. This gives them an income of one hundred thousand dollars a year. Living on their family estate and owning their vehicles leaves them with a healthy amount of disposable income simply from the interest even after taxes. The other family both parents work making a combined income of two hundred and fifty thousand dollars a year. They have a mortgage and car payments due every month. Obviously, they will pay more income tax than the first family and will also have to pay FICA and other salary related taxes that the first family escapes by living off interest on savings. The question then is which family is the wealthy family and are we taxing the truly rich and wealthy family or are we taxing the more productive family.
When the tired old class warfare chant is made about taxing the wealthy because they have all the money, the wealth, it is a false claim because we tax income, not wealth. Our tax system places the burden on those who earn money, not those who already have money. Think about this next time you hear the cry of tax the rich and realize that it is a call to tax the hard working, not the wealthy.
Try reading and comprehending what others write, it may save you an a** chewing some day.
Capital is not only a factor of production it is also the most mobile of all the factors of production. That’s taught in Global Econ at the graduate level. I took that class last semester it was awesome. Our Prof shot down every progressive marxist kid that though they knew a hoot about real world economics with cold hard facts and GAO data.
Sounds like an awesome professor and class. All I had was two quarters of econ on my way to an accounting degree, then 25 years as a state bank examiner and 6 years on the banking side. I missed some of the good stuff along the way. The most mobile factor of production makes sense, though, and the highest corporate tax rates in the world is gonna scare some of it away. I hate commies . . . this was a great place until they came along.
I love how false Christians only believe what they want...
Is that from the Judas translation or the Goldman sachs bible?
Wealth bigots??? Bwhahahaha!!! This thread is better than smoking crack.
Just saying...
I hope it’s more accurate now.
Viva la Wall St. rape!
Get real. Property taxes alone would be tens of thousands of dollars- thats why so many rich democrats like Rangel, Pete Stark, Tom Daschle, falsely claim homestead exemption and skate on property taxes on their mansions in DC and Maryland<
Excellent points. In addition, let's pretend the person above did leave his money in the bank. Where does the OP think money to loan comes from, Obama? No, it comes from those people who deposit their wealth which is then available for others to use, instead of for government to fritter away on cash for the UN, or for studies of the mating habits of prairie dogs.
As an aside, if this wealthy person is elderly and his capital is incrementally reduced, his ability to produce income will be reduced, perhaps permanently.
If you work really hard and make some sacrifices you could be rich some day.
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