Why tax the rich WAY more?

Question

They already pay something like 25-35% of their salary to tax, plus they make more in interest, dividends, investments, etc. that they get taxed on, they have a bigger house so their local taxes are higher, they spend more so they pay more tax that way, right? Isnt there more tax on a Mercedes than a Kia? I understand they make a ton of money but it isnt fair. They already pay a higher percent to taxes, right? And a higher overall amount to taxes, right? What else do you want. What if all the people that made 30k a year wanted to tax the people who make 55k a year. Hey they make more than me so kill them with taxes. Rich people are already paying a much higher percent of their income to tax. I dont see this as a solution to any problem. No matter how much you give the government its not enough. The only way to fix the gov. financially will be to get honest politicians, o wait they dont exist lol,and cut wasteful spending

Answer 1

The highest tax bracket (from the last time I looked) is 39.6%

The reason that taxing the rich more than the poor is good for the economy has to do with buying power. Even after heavier taxing, rich people are still able to live a much more comfortable life.

Lets suppose we set a flat tax, of say 20%. A household which earns $30k a year would pay $6k in taxes which leaves $24k left to spend on living expenses (rent, utils, food, etc.) A household which makes $60k a year would pay $12k a year in taxes and take home $48k.

Let's jump ahead to a household earning $200k a year. with a flat tax they would pay $40k a year in taxes and take home $160k. As you step up the scale the amount paid in taxes, while still the same percent, is a much lower impact on the household's ability to live. At a $500k a year income the taxes paid are $100k leaving $400k left over.

Also the total the government makes in tax revenue from these households is $158k

Lets do the same examination for a hypothetical graduated tax. We'll set the following tax scale:

Income = Tax %
$0 - $49k = 10%
$50k - $124k = 20%
$125k - $300k = 30%
$300k - infinity = 40%

Household A:
Income: $30k
Tax: $3k
Take-home: $27k

Household B:
Income: $60k
Tax: $12k
Take-home: $48k

Household C:
Income: $200k
Tax: $60k
Take-home: $140k

Household D:
Income: $500k
Tax: $200k
Take-home: $300k

In this scenario the government $275k in tax revenue and the lower income family (A) is given that much more take-home to be able to live on.

I do agree that the way in which the government taxes is not the only thing that affects it's economy. Spending is a large contributor to the economy. The biggest contributor to the strength of an economy is a balance between the two. You can't give tax breaks to the rich and expect them to reinvest their extra income in the economy, (by purchasing goods) because they're not in a situation of need. At the same time you can't increase spending on items that don't encourage the economy. (foreign aid, defense) Spending on things like education, and public works are big simulators.

Answer 2

Don't forget that it is PROVEN, that the higher the tax, the less they spend and the less they make to avoid the tax.

Taxes on anyone do not create jobs and a sustainable economy. They just make for bigger government and more spending.

When Reagan took office, unemployment was in the double digits, interest rates were so high no one could pay and the "rich" were paying up to 45% in income tax. He lowered the taxes and encouraged American investments in American jobs and the economy turned around.

We are headed that way again, except our government is the largest it has ever been. Hang on folks, it's going to be a bumpy ride.

Answer 3

How dare you try to be sensible.

The Bottom 25% pay no taxes, the middle 70% pay some taxes, the Top 5% pay the most taxes.

Any across the board tax cut by definition will help the wealthy more, but only in absolute dollars not in % of money.

For Example
A guy making 20k a year and one making 200k a year. They both get a 10% tax cut. The first guy pays 200 bucks less a year in taxes, the second guy 2000 bucks less.

Answer 4

This is great! Many wealthy people do not care about taxes because they own businesses! As such, there are laws put in place to ease the burden of business owners because the bring economic stability to the government. Besides, complaining about it is not going to make it go away. We have the freedom to educate ourselves about how taxation works, so instead of complaining, we should become better with the system and how it works. It is not difficult to receive some tax breaks.

We could get all the honest politicians in the world. That would not erase the debt that the government continues to encounter. As the government runs out of money, they just print more :-) As such, the power of the dollar continues to decline.

The only way for us to combat that individually is to get richer and offset the income with "business" expenses :-)

You all have a wonderful day!

Answer 5

in simple terms 17% of probable U.S. electorate now say the country is on the superb song, in accordance to a clean Rasmussen reviews national telephone survey taken the week ending Sunday, July 24. That looking is the backside measured by fact that January 11, 2009. From August 2007 to early January 2009, self assurance in the country’s modern course ranged from a low of 10% to a intense of 24%. whilst President Obama assumed place of work, optimism rose to 27% and climbed to the low to mid 30s until eventually could 2009. That parent has gradually declined by fact that. Seventy-5 p.c. (seventy 5%) of electorate say the country is heading down the incorrect song, the optimal looking by fact that early January 2009. by fact that that element, voter pessimism had ranged from fifty seven% to seventy two%. maximum Republicans (ninety one%) and electorate no longer affiliated with the two political party (seventy seven%) have self assurance the country is heading down the incorrect song. Even a powerful majority (fifty 8%) of Democrats now say the country is heading in the incorrect course.

Answer 6

Actually as a percentage of their wealth, the rich pay the least in taxes. It is true that as a percentage of realized income, they do pay the highest rate.

You might want to read the book "The Millionaire next door" to understand more about the whole concept of taxes on the rich and how the rich got rich.

Answer 7

Simple. The government needs money. Rich people have money to spare. Regular people do not. That about sums it up.

That said, you are right about government spending. It is a serious issue, and honest politicians are the solution. Here is the irony of your argument, though. Politicians are dishonest because they are rich. They are dishonest also because other rich people contribute to their campaign financing (amongst other things), and this causes corruption as they start legislating because of who gave them money, and not based on the issues that really effect our country. So it can be argued that if the government really legislates toward the rich anyway, then maybe they should be more responsible for the upkeep of government.

Answer 8

That's not true, if they are paying 25-35% of their income to taxes, they need a better accountant, There are so many ways to get income and pay low taxes, it's unbelievable, you just have to know taxes! The people that are paying high taxes, are people that don't know about income and taxes, and exclusions, and savers' credit, and depreciation, capital gains (10% tax rate) People need to get educated about how they are being taxed!

Answer 9

Bear in mind, the so-called rich really get raked over the coals when it comes to real estate taxes.

People who cry "Tax the rich" are only looking at one, specific tax.

Answer 10

i dont think taxing people is right AT ALL