Tax the "Rich"?

A popular theme these days is the notion of taxing wealthy Americans because they got an undeserved tax cut and now they should pay "their fair share". Never mind the fact that many of these wealthy folks actually represent small businesses and their "income" is inflated because they file taxes as S-corporations or LLCs.

The political rhetoric treats these people as fixed targets, and politicians assume they will just stand there, grab their ankles, and take whatever tax increases are handed down. The reality is the wealthiest 1% can live wherever they choose, and many will simply leave the tax base if the federal government heaps enough abuse on them. The next level, not quite as wealthy, may not have unlimited mobility, but they will alter their behavior to avoid paying taxes. They will lay off employees, close businesses, retire early, etc., rather than pay Uncle Sam's high taxes.

So what you say? Well consider this, the upper 1% already pay about 40% of income taxes, and the upper 5% of earners pay a total of 60% of the total. The bottom half, 50%, of income earners only pay 3-frikkin'-% of income taxes! If only one tenth of the upper 1% of taxpayers leave the tax base (a few thousand people), income taxes on the bottom 50% will have to DOUBLE to make up the difference.

So go ahead and cheer 'em on as they go after the wealthiest Americans. Your taxes are going up. They could afford it, can you?

James McSheehy said:

A popular theme these days is the notion of taxing wealthy Americans because they got an undeserved tax cut and now they should pay "their fair share". Never mind the fact that many of these wealthy folks actually represent small businesses and their "income" is inflated because they file taxes as S-corporations or LLCs.

The political rhetoric treats these people as fixed targets, and politicians assume they will just stand there, grab their ankles, and take whatever tax increases are handed down. The reality is the wealthiest 1% can live wherever they choose, and many will simply leave the tax base if the federal government heaps enough abuse on them. The next level, not quite as wealthy, may not have unlimited mobility, but they will alter their behavior to avoid paying taxes. They will lay off employees, close businesses, retire early, etc., rather than pay Uncle Sam's high taxes.

So what you say? Well consider this, the upper 1% already pay about 40% of income taxes, and the upper 5% of earners pay a total of 60% of the total. The bottom half, 50%, of income earners only pay 3-frikkin'-% of income taxes! If only one tenth of the upper 1% of taxpayers leave the tax base (a few thousand people), income taxes on the bottom 50% will have to DOUBLE to make up the difference.

So go ahead and cheer 'em on as they go after the wealthiest Americans. Your taxes are going up. They could afford it, can you?

Very well put James. Unfortunately it might be too late. The class-envy hordes with their pitchforks and torches are already massing. Little do they recognize the smoke of the wealthy American they burn at the stake also carries with it their jobs and government "benefits". Barriers constructed in logic will not impede their pursuit of "justice".
Mike

James McSheehy said:

A popular theme these days is the notion of taxing wealthy Americans because they got an undeserved tax cut and now they should pay "their fair share". Never mind the fact that many of these wealthy folks actually represent small businesses and their "income" is inflated because they file taxes as S-corporations or LLCs.

The political rhetoric treats these people as fixed targets, and politicians assume they will just stand there, grab their ankles, and take whatever tax increases are handed down. The reality is the wealthiest 1% can live wherever they choose, and many will simply leave the tax base if the federal government heaps enough abuse on them. The next level, not quite as wealthy, may not have unlimited mobility, but they will alter their behavior to avoid paying taxes. They will lay off employees, close businesses, retire early, etc., rather than pay Uncle Sam's high taxes.

So what you say? Well consider this, the upper 1% already pay about 40% of income taxes, and the upper 5% of earners pay a total of 60% of the total. The bottom half, 50%, of income earners only pay 3-frikkin'-% of income taxes! If only one tenth of the upper 1% of taxpayers leave the tax base (a few thousand people), income taxes on the bottom 50% will have to DOUBLE to make up the difference.

So go ahead and cheer 'em on as they go after the wealthiest Americans. Your taxes are going up. They could afford it, can you?

What say me? I say you don't know wht you are talking about....Wealthy people are not going to quit working so they don't have to pay taxes, and if they leave the country, I say GOOD! They can follow the jobs they sent overseas.