With all of the news surrounding taxing the rich, I started to think, who cares? I mean, you didn’t hear this type of fuss when we jacked up the tax on cigarettes. My research says roughly 20% of Americans smoke cigarettes. Those people pay a tax that almost doubles the costs of their habit. Where is the outrage there? Instead we hear that the rich should not be taxed. After all, they earned their money, they are the job creators right?
I started to wonder, are there that many people who make $250,000 or more that would be impacted by this tax the rich plan? From the research I have done, roughly 3% of Americans are fortunate enough to achieve that level. So why do average Americans care?
I can only come up to two conclusions. The first is that because we all yearn to reach the rich threshold, we do not want to face being taxed at a higher rate. So I went out to determine what it means to be rich. A recent Gallup poll says Americans think they are rich at $150,000. On top of that, a recent study at Princeton concluded, people only need to make $75,000 to be happy. So why do we care about those unhappy folks at $250,000 and above?
According to the Bureau of Labor and Statistics, the average American made $44,410 in 2010. For the sake of argument, let’s double that to $88,820. Keep in mind, we are now above the happy threshold. Now, since many household are duel income earners, let’s double the double again to $167,640. So now we consider ourselves rich, are near the individual earner happy zone and still have not reached the top 3%. Life is good. Besides, let’s be realistic, how many will really reach the $250,000 level?
The second factor I have to consider is that someone has planted in our heads that rich people create jobs. Really, Paris Hilton is creating jobs? I am not counting her entourage. Some rich people may be business owners, but they are not necessarily jobs creators, businesses create jobs. There is a difference. If you really want to create jobs, do not give tax breaks to the rich; give hiring vouchers to businesses. According to CNN, taxpayers paid $185 billion to cover the unemployed in 2011. That comes out to $10,500 per unemployed person. What if the government gave businesses that money for each person they hired this year? That would reduce the cost of employing another person, raise additional income tax money from their salary (which would off-set the voucher) and add 96% of the income back into the economy. (Our current savings rate is 4%). The rich didn’t create this happening, a voucher type program did. Now if the rich paid 1%-2% more in taxes, this voucher would be almost be paid and reduce the tax burden on everyone, except the $250,000 plus earners.
I do not believe $250,000 is that much in earnings. Someday I actually hope to reach this level and I do not want to have my taxes go up. Let’s put the floor at $500,000. After all, what do I care?
vous êtes un connard
So the compensation system for the top 1% has changed drastically, not like the old factory CEO that drove the new Buick, earned 10 times more than the factory worker, but definitely lacked the hubris of the international CEO with the stable of Lamborghinis and Bugattis.
Spread the wealth am I right?
Or Enact laws that limit the amount of money you can earn as personal income. Requiring the extra to be split up by the employees or taxes that go back into the government creating the situation outlined above. So basically in a nut shell communism. Which has proved such a success woldwide. Since when are profits evil and stuff, or are you just incapable of creating more income yourself?
I would need to name tens of thousands of people to name the 1% in Wisconsin, and I do not have anyone's income tax forms, unless they are politicians and have disclosed them.
No, I would not put a limit on how much an individual can make, they just end up in a marginally higher tax bracket. And I am definitely not a Communist or even a socialist. Good god man, your back in the Cold War. I think I would be safe in matching my net worth to yours, and winning. You may beat me on current income, but not when matching my previous earning years. You are trying to demonize me, I never said anything like what you are attributing to me. As a spokesman for the super-rich, you may want to drop back to blogging about your belief that professional wrestling is an honest sport.
No I would not consider you part of the 1%, more like a middle class person tipping toward the upper end. My net worth is also over $1M, my house and second house ares paid for, no debt, I save. My current income is not nearly as high as it was. I think a big difference is that I am not sociopathic. I do not call people that have a different point of view Dumbasses right off the bat, or wailers, howlers, silly, and crazy.
I don't see any bennifit to raising taxes, aka revenue on anyone right now. The gov. can not control it's spending. As a young business owner I don't see any reason to reward their bad habits, especially with income that will not reduce the problem. When you get someone to quick smoking crack the last thing is to let them smoke crack all day for years on end. The highlight of this is Obama, the senate and the house did not raise taxes when they had the optimal opportunity and full control. Obama keeps talking about it, pay your fair share whatever that means. Your solution does not do anything to reduce the super rich or close the "gap" between the middle class. It just raises their taxes 4-5% and reduces their spending 4-5%. It's symbolism, hey we got you while some of us depend on that 5% spending. Even if the spending is savings or asset collection.
You paid for your house, so you ought to be able to live in it regardless of your income. Same goes for me.
Some time ago, I too noted that compensation packages do not seem to vary with the stock or company performance. This causes me to vote against any and all directors on the compensation committee, every year.
I'm sure it's not intended, but it could appear as bullying. I believe these boards provide a valuable opportunity to share information and hone viewpoints.
Guilty as charged, I understand your contempt for such feelings.
Speaking about books Keith....