1. An Income Tax is not a Tax on Wealth or the Wealthy.
2. Obama's high tax rate on high income is actually a Wealth Prevention tax! It prevents poor people from becoming wealthy.
What Obama's tax does is destroy the American dream by making it impossible for people who are not already wealthy to become wealthy. What kind of hope is that???
Usually, wealth has already been taxed during its accumulation. To tax it again on a yearly basis is absurd.
Properly defined, an income tax is a tax on the acquisition of wealth.
Since the “rich” are already wealthy, they may not have appreciable taxable income, and thus may not in fact pay any significant tax. Secondly, the wealthy can afford to use tax-free instruments like tax-free municipal bonds and so forth, such that they do not have any taxable income, or that that taxable income may be small when considered in the context of their entire income.
Also, those who may earn $250K may not earn that for many years such as a practicing professional attorney or even MD. The entrepreneur, may make that in a single year and make less in the years preceding and following such an event.
This is what the royalists in Europe have done to prevent the rabble (aka newly rich) from invading their enclaves like Monte Carlo and keeping them as surfs and peasants and taxpayers.
If one were able to keep the fruits of one’s labors, one might not have to work until 67 years old. You could make good living and in 20 to 30 years leave the labor market for a comfortable life. I know the money that has been stolen from me in taxes would if properly invested like the other monies I have managed to save, would allow me to leave the workforce next year after 30 years. As it stands now, I will have to work until the day I die (family history suggests that my demise will be at age 67).
Not to worry. Obama's policies (which I detest -- don't get the wrong impression) are more evenhanded than this would indicate. He taxes heavily and directly the income of the first family. His policies will also bring about inflation and dollar debasement, which will tax the much larger principal of the second family. Everybody takes it in he shorts. The second family just doesn't get to write a check--their nest egg is nibbled away just the same.
“They want to tax those (who make more than $250,000 a year) who are trying to become rich, while preserving the status for those who already have wealth.”
Heh, I find that revelation amusing. People think that by increasing taxes on the “rich” are heling them, yet they’re helping the people they hate. Wonder how long it’ll take that to sink in?
What he should be taxing is consumption, but that would be “fair” and therefore note result int he outcome that Obama and his liberal brethren want.