“It may surprise dim pols to learn that many in the middle class understand that it is investing by the wealthy that creates jobs.”
I’m afraid I must be dim myself. For the last ten years that I ran my own business, I was in the top 1 to 2% of wage earners. I can’t see that it would have made any difference in the way I ran my business if I had had my taxes raised from 35% to 38%.
When I first started earning enough to be in the top 2%, the top tax bracket was taxed at a 50% rate. A few years later, it dropped to 28%. At the higher rate, I would tend to invest more in my business because it only cost me 50 cents on the dollar in after tax income. That is to say, if I gave someone on my staff a $1,000 bonus, it only cost me $500, because if I kept the money for myself, it would be taxed at 50%. Whereas when the top tax rate dropped to 28%, giving a $1,000 bonus cost me $720.
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The capital gains tax is going up as well,along with the Estate tax.