Is Obama Planning a Surprise Tax Hike?

The Masses and wealth redistribution

Why does anyone think that taxing the rich is bad? The majority of Americans do not make $250,000 or more and will not be affected. They will be benefiting from increased health coverage and the ability to get a college education at an affordable rate. Imagine how powerful the country would be if the majority instead of the minority of Americans were United as we were once before when this country began. I mean jeez, how much do you really need to bring home if..."we don't blow money on supid stuff and our taxes are low"???

Danielle of NY @ Mar 04, 2009 19:01:26 PM

Jesse

Good post Jesse, but you missed the AMT. With the Alternative Minimum Tax, the deductions available to those working people making good money are phased out, until the deductions available to those making over about $300k are virtually eliminated. Lower income working Americans get all kinds of good deductions - Head of Household, childcare credit, etc. etc.

Those making $$ off capital gains, as opposed to income, do pay a lower tax rate. Plus they don't pay social security. But for money to be available to fund American business, cap gains taxes have to be low. Otherwise, money goes somewhere else, like Ireland. If you don't understand this concept, capital gains represents a profit from applying capital. If nobody will loan anybody money to say, start a business, because they have to pay too much in taxes on the return on that capital, they will do other things with their money. Then there's no money floating around to be invested in businesses.

A lot of people here don't seem to understand that businesses raise money by selling an ownership stake to somebody who's willing to risk their cash to make more cash. Some of these businesses are publicly-traded companies, which issue stock which is sold (and the company takes the money and builds a new factory or something). Some of these businesses are private, and the person with money might take an ownership stake of some kind - and get paid back either with profits or when the company gets sold or goes public.

I find it fascinating how few people in this country understand how the economy works. They think there is only one, static pie, and if somebody has more, then somebody else has less. That's just false. The pie keeps getting bigger and bigger for everybody - but it won't keep getting bigger unless everybody works. If everybody won't work to make the pie bigger, yes the pie pieces get smaller, but exactly the opposite of the way the liberal whiners think. The big pieces get smaller, and nobody is better off.

If you want an example of how to run a country and succeed, take a look at Texas. We don't have a state income tax, but our state is solvent. We're one of the only states NOT in a recession. Why? We don't blow money on stupid stuff, and our taxes are low. We're friendly to business, even "dirty, nasty" business. We take out the rest of the country's trash, I guess, but at least we're hiring.

Julie Chandler of TX @ Nov 13, 2008 12:50:10 PM

If the "middle class" wants more money, why don't they go out and earn it?

Julie Chandler of TX @ Nov 13, 2008 12:24:04 PM

Wealth Redistribution?

What about the massive redistribution of wealth from working class taxpayers to commercial banks, financial institutions, insurance companies, investment banks, and likely many other industries who are currently hat in hand before Congress? We're at $700 billion and counting. I can assure you that any wealth redistribution from billionaire taxpayers to the middle class under the Obama administration will pale in comparison, unless you count the illegally evaded tax on assets stashed offshore with UBS and others.

Craig M. of MO @ Nov 13, 2008 11:58:35 AM

steve

To say that someone making 50k and someone making 1 million pays the same tax rate is patently false, first of all. T

he more money you make, the more you are taxed in America. True, the wealthy have more deductions, which can reduce their overall rate, but that's the way our system is. A deduction still represents money spent in our economy-if I buy a new truck for my business, I get a deduction, but I have put money into the economy, which creates jobs for the auto industry, sales people, etc etc.

The fact that you would use the word "disparity" belies that you feel there's an inherent unfairness between rich and poor; but capitalixm will always have rich and poor people-but the poor people should strive to become rich, not wait for the government to right this "wrong" for them)

You also need to realize that people living in million dollar households do not have the same expenses as households making 50k....they are sending their kids to the best schools they can, living in the best house they can, etc etc. Meaning, people at all income levels tend to live at the highest standard of living they can afford, so I'm not sure what you mean by disparity.

I could just as easily pose the question you've asked, and call for households making 50k a year to give up more money to the government in order to "help" those households making less than 20k a year-the analogy between 50k and 1 mill. is the same one in either case.

Jesse of PA @ Nov 12, 2008 13:26:27 PM

How much in taxes does a family of 4 with a household net income of lets say $50,000 pay in property taxes, state sales tax, federal gas tax etc...etc...etc compared to a family of 2 with a net income of lets say $1,000,000?

Hint....it's the exact tax same rate.

Now figure out which family ends up paying a far greater % out of their net household income for those taxes.

Hint....it's not the family making $1,000,000.

I'm all ears if anyone can logically explain to me why this huge disparity in taxes should not be addressed?

.

Steve A. of GA @ Nov 12, 2008 10:45:26 AM

Socialism Great in Other Countries?

Sure, right. Well, if I want socialism, I'll move to other countries. I'm and American, I live in America, and I'm more motivated by our framework for our country, that we believe in God,free enterprise, capitalism and LESS government control. Because our forefathers had the wisdom to provide such a framework, Americans have been able to soar to the highest levels of ability to create and invent new things, discover cures for diseases and more, help others in need when no one else can (the most giving nation in the world). It's why thousands upon thousands each year flock to this country trying to get in. I don't need government telling me what to do and how to live and if I'm lacking in brain cells enough to need someone to tell me how to live, I'll be happy to transfer to another country. Many of us saw the writing on the wall with Obama. We did everything we could to prevent the worst from happening and from loosing the country we love. Unfortunately, too many didn't see.

TLynn of GA @ Nov 12, 2008 10:03:31 AM

Stupid is as stupid does.

Those that voted for the one will reap what they have sown.

GeorgeNArizona of AZ @ Nov 11, 2008 17:19:45 PM