The Wealthy are wealthy primarily because of income from inherited capital. They can earn about 2% more per year than the ordinary rate of return on capital. Around 70% of total income of the rich comes from income from capital.
There are two economies in this nation. One operates under Free Enterprise and competition, and the other is Monopoly Capitalism which competes by different rules including bribery of politicians.
Trump is not writing this tax bill but he is not going to veto it if the top rate remains the same in order to get a bill passed. Sixteen hundred people in the Super Rich versa hundreds of millions is an easy call.
“The wealthy are wealthy primary because of income from inherited capital.”
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Not so. Approximately 1,700 people in American become millionaires on a daily basis.
www.factretriever.com/millionaire-facts has an article entitled, “29 Valuable Facts about Millionaires,” by Karin Lehnardt, Senior Writer.
Among the highlights.....
In the United States, approximately 7% of households are millionaires.
A 2010 study argues that millionaires (those in the top 1% of earners) pay approximately 40% of all taxes in the United States.
According to the book “The Millionaire Next Door,” only 20% of millionaires inherited their wealth. The other 80% earned their cash on their own.
The preferred car of millionaires is a Ford. Cadillacs are second and Lincolns are third. Many millionaires avoid high-priced cars in favor or a more economical set of wheels because cars are investments with little return.
Only 20% of millionaires are retirees. Around 80% still go to work.
The average millionaire goes bankrupt at least 3.5 times.
Most modern American millionaires today (about 80%) are first-generation millionaires. Usually the fortune they build will dissipate by the second or third generation.
Most American millionaires are manager-owners of businesses.
Half of all millionaires are self-employed or own a business. Around 80% of millionaires are college graduates.
In the year 1900, there were only 5,000 millionaires in the U.S. In 2000, there were more than five million. Before the 2008 crash, there were 9.2 million American households worth $1 million or more.
If the Republicans are going to join the democrats in the demonization of the so-called rich, then they truly are the Uniparty. How does punishing the people who create most of the jobs and make the country work help the economy?
Case in point....I live in Maine. Back in 1990, when Bill Clinton, Sen. George Mitchell of Maine, et al pushed through the “luxury tax,” it including a tax on new yachts.
“Rich” people, instead of buying new yachts in America, either bought new yachts overseas or used yachts at home. Many small shipyards here in Maine suffered, and laid off many workers. It wasn’t the “rich” who suffered, it was the men with young families who formerly worked in the shipyards who suffered.
As for the “super-rich” like Bill Gates, Mark Zuckerberg, Paul Allen, Pierre Odiymar (founder of eBay), Jeff Bezos, etc., most of their wealth is in the form of stock they own in their respective companies.