Do you know what happens when you raise taxes on the wealthy?

Question

The wealthy are business owners, first they cut out overtime for employees, next cut bonus and raises, next lay you off. You file for unemployment; taxes go up to pay unemployment. Government needs more taxes, raise it on the wealthy, the cycle repeats. The wealthy don’t get hurt; it’s the employees that pay the price

Answer 1

Then that is why we should not vote for Democrats.

Answer 2

Jefferson is permitted his opinion but it's not part of the Constitution or the law. It was also written about an America that was 100 years from the extreme inequalities in wealth due to industrialization. Jefferson also thought that the foundation of the United States was the Yeoman, the farmer and the laborer that made up the majority of colonists, but I see few of you protesting the fact that the tax cuts shifted a greater proportion of the tax burden onto America's middle class, that the shift of the nation's wealth to the top 1% of the population has destroyed the buying power of the middle class, that the quest for greater and greater amounts of wealth by this 1% sent jobs overseas and is destroying the middle class. Read Jefferson's letter to George Washington, May 23, 1792. Jefferson has no problem discussing the Revolutionary War debt and the taxation necessary to pay it off. He does mention the "habitual murmurings against taxes and tax gatherers". And consider the beginning of Jefferson's letter to Samuel Kercheval (July 12, 1816): "I am not among those who fear the people. They, and not the rich, are our dependence for continued freedom." And the letter goes on to warn against burdening "the people" with taxes to pay off debt but the point is that Jefferson did not consider "the rich" as part of "the people".

Answer 3

Why would wealthy business owners cut employees when their personal income taxes are raised? Supply siders confuse personal income with corporate profits. They're two different things. How many billionaires really use their personal money to create jobs? If someone makes $1,000,000.00 a year and is taxed at 70% he has to "survive" on $300,000.00 a year. Currently I'm getting by OK on about $17,000.00 a year take home. Any millionaires out there want to trade places?...and higher milage standards will cripple our robust auto industry...right.

Answer 4

This is true, but it is only half of the equation. Very wealthy people usually don't use their money to drive the economy. The hide their money in tax shelters and off-shore investments. The middle class actually drives the American economy. The basic goal should be to achieve a balance between high taxes that crush the formation of new businesses, and taxes low enough to spur innovation. One thing I know: A very small group of very rich people are not going to have much of their wealth for long if all they do is sell yachts back and forth amongst themselves. Supply-side economics is all bunk and has been since it was "invented". Demand drives all investment. Without demand, nothing is offered in the marketplace and nothing is demanded in a marketplace without buyers with incomes that come from jobs.

Answer 5

It's not quite that simple, but your concept is close. Raising taxes on wealthy individuals causes loss of jobs because the people who start businesses are not the poor or the middle class. If you tax them more, they stop earning and close businesses. But taxes don't go up to pay for unemployment. Unemployment is paid from UIC funds which are paid into a system as you work. Real wealth never stops earning, it only stops being reported. Liberals fail to realize that JFK lowered taxes on the wealthy and it caused economic growth that stopped only with LBJ's Great Society socialism. (and his tax hikes) Reagan's tax cuts caused ten years of economic growth, and the Bush tax cuts caused six years of the same. However, the only solution is to stop spending money, which Congress refuses to do.

Answer 6

Warren Buffett seems to think the wealthy should pay more in taxes. They can afford it more than the average person and certainly more than the poor. So you have to wait a year to buy the new 1/2 million dollar yacht. Poor baby you'll recover.

Answer 7

While historically, that argument is completely bogus, by all means - don't let the facts get in your way.

here are a few fun facts:

IN 1985, THE FORBES 400 were worth $221 billion combined. Today, they’re worth $1.13 trillion—more than the GDP of Canada.

THERE’VE BEEN FEW new additions to the Forbes 400. The median household income has also stagnated—at around $44,000.

AMONG THE FORBES 400 who gave to a 2004 presidential campaign, 72% gave to Bush.

IN 2005, there were 9 million American millionaires, a 62% increase since 2002.

IN 2005, 25.7 million Americans received food stamps, a 49% increase since 2000.

ONLY ESTATES worth more than $1.5 million are taxed. That’s less than 1% of all estates. Still, repealing the estate tax will cost the government at least $55 billion a year.

ONLY 3% OF STUDENTS at the top 146 colleges come from families in the bottom income quartile; only 10% come from the bottom half.

BUSH’S TAX CUTS GIVE a 2-child family earning $1 million an extra $86,722—or Harvard tuition, room, board, and an iMac G5 for both kids.

A 2-CHILD family earning $50,000 gets $2,050—or 1/5 the cost of public college for one kid.

THIS YEAR, Donald Trump will earn $1.5 million an hour to speak at Learning Annex seminars.

ADJUSTED FOR INFLATION, the federal minimum wage has fallen 42% since its peak in 1968.

IF THE $5.15 HOURLY minimum wage had risen at the same rate as CEO compensation since 1990, it would now stand at $23.03.

A MINIMUM WAGE employee who works 40 hours a week for 51 weeks a year goes home with $10,506 before taxes.

SUCH A WORKER would take 7,000 years to earn Oracle CEO Larry Ellison’s yearly compensation.

Answer 8

And to think I used to believe this. I'm a small biz owner, and I've been learning the tricks of the corporate tax world. Believe me, they want to squash us little biz owners and reward the big rich guys. It's not fair in the least.

Answer 9

The statement you make isn't 100% acurate. The wealthy lead a VERY lavish lifestyle, much more than we are aware of. The average American citizen is nothing but a means for them to pay and maintain that lifestyle. As evident of our weak dollar and slowing economy the tax cuts to the wealthy have not stimulated it, and wasn't that the logic for Bush's tax cuts.

Answer 10

congratulations,you got it right ! screw with the really rich and you will get burned.I am not rich,however I am a business person that does ok.poor people do not create jobs nor do they pay taxes.it seems that the libs have been successful with their campaign to make successful people evil.time to wake up America,no corporate dynamic business,no jobs.the libs think that tax dollars grow on trees,raise,raise.here is a news flash for these bozos-pass the point of no return and you will get sh*it ! it will vanish to offshore tax free havens......

Answer 11

That is happening now. It is the curse of the bottom line. It is far worse when that company is publicly traded. Share holders want better returns no matter what. There is no face to the profit.