Taxing the rich is good for the economy

B00Mer

Keep Calm and Carry On
Sep 6, 2008
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Taxing the rich is good for the economy



One of the most pernicious economic falsehoods you'll hear during the next seven months of political campaigning is there's a necessary tradeoff between fairness and growth. By this view, if we raise taxes on the wealthy the economy can't grow as fast.

Wrong. Taxes were far higher on top incomes in the three decades after World War II than they've been since. And the distribution of income was far more equal. Yet the American economy grew faster in those years than it's grown since tax rates were slashed in 1981.

This wasn't a post-war aberration. Bill Clinton raised taxes on the wealthy in the 1990s, and the economy produced faster job growth and higher wages than it did after George W. Bush slashed taxes on the rich in his first term.

If you need more evidence, consider modern Germany, where taxes on the wealthy are much higher than they are here and the distribution of income is far more equal. But Germany's average annual growth has been faster than that in the United States.

You see, higher taxes on the wealthy can finance more investments in infrastructure and education, which are vital for growth and the economic prospects of the middle class.

Higher taxes on the wealthy also allow for lower taxes on the middle -- potentially restoring enough middle class purchasing power to keep the economy going.

As we've seen in recent years, when disposable income is concentrated at the top, the middle class doesn't have enough money to boost the economy.

What we should have learned over the last half century is that growth doesn't trickle down from the top. It percolates upward from working people who are adequately educated, sufficiently rewarded, and who feel they have a fair chance to make it in America.

Fairness isn't incompatible with growth. It's necessary for it.

source: Taxing the rich is good for the economy | Marketplace.org

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The only reason I see taxing the rich is a good idea, is they will reinvest their income back into the business and grow their company to use as a write off.. creating growth and jobs.
 

JLM

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Nov 27, 2008
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Taxing the rich is good for the economy



One of the most pernicious economic falsehoods you'll hear during the next seven months of political campaigning is there's a necessary tradeoff between fairness and growth. By this view, if we raise taxes on the wealthy the economy can't grow as fast.

Wrong. Taxes were far higher on top incomes in the three decades after World War II than they've been since. And the distribution of income was far more equal. Yet the American economy grew faster in those years than it's grown since tax rates were slashed in 1981.

This wasn't a post-war aberration. Bill Clinton raised taxes on the wealthy in the 1990s, and the economy produced faster job growth and higher wages than it did after George W. Bush slashed taxes on the rich in his first term.

If you need more evidence, consider modern Germany, where taxes on the wealthy are much higher than they are here and the distribution of income is far more equal. But Germany's average annual growth has been faster than that in the United States.

You see, higher taxes on the wealthy can finance more investments in infrastructure and education, which are vital for growth and the economic prospects of the middle class.

Higher taxes on the wealthy also allow for lower taxes on the middle -- potentially restoring enough middle class purchasing power to keep the economy going.

As we've seen in recent years, when disposable income is concentrated at the top, the middle class doesn't have enough money to boost the economy.

What we should have learned over the last half century is that growth doesn't trickle down from the top. It percolates upward from working people who are adequately educated, sufficiently rewarded, and who feel they have a fair chance to make it in America.

Fairness isn't incompatible with growth. It's necessary for it.

source: Taxing the rich is good for the economy | Marketplace.org

............................................

The only reason I see taxing the rich is a good idea, is they will reinvest their income back into the business and grow their company to use as a write off.. creating growth and jobs.

Actually taxes from any source is BAD. Governments aren't responsible enough to be in charge of people's hard earned money. They are very poor at running business- sure have a few of the brighter (if there's such a thing) bureaucrats acting as watch dogs, but the vast bulk of money management should be done by the private sector. There will be far fewer dollars squandered.
 

taxslave

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Nov 25, 2008
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The rich will take their money elsewhere, leaving the middle class and the almost rich holding the bag. This is what happened to England some time back when all the rock stars left town. Whoever wrote this drivel has no clue of economics.

It is also a US article.
 

Curious Cdn

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Feb 22, 2015
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So, we're stuck, then. If we tax the rich, they take their money and go away. If we don't tax the rich, they take as much of OUR money that they can squeeze out of us and then go away.
 

JLM

Hall of Fame Member
Nov 27, 2008
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The rich will take their money elsewhere, leaving the middle class and the almost rich holding the bag. This is what happened to England some time back when all the rock stars left town. Whoever wrote this drivel has no clue of economics.

It is also a US article.

Taxing the rich has SHORT TERM benefits at best- at worst they will lay off employees, close down companies and quit donating to charities.

So, we're stuck, then. If we tax the rich, they take their money and go away. If we don't tax the rich, they take as much of OUR money that they can squeeze out of us and then go away.

They are only going to go away if there is a better place to go away to! :)
 

B00Mer

Keep Calm and Carry On
Sep 6, 2008
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Taxing the rich has SHORT TERM benefits at best- at worst they will lay off employees, close down companies and quit donating to charities.

Can tell you've never been rich..

You reinvest it back into the company, amortized your upgrades and new equipment, expand your business. You don't get taxed on income you put back into upgrades or new staff..

Charities, they are write offs. You get a receipt for your Red Cross donation and you can claim it against your overall income.

...and so on.

......................................

Great example: I earned an extra $50,000 this year. Rather than getting taxed on that extra income a buy a new Rig.

I can claim 1/3 of the cost of the new equipment over the next 3 years.. so I buy it, and hire another driver.. so I was able to reduce my taxes with an expansion of my business..



If my taxes are lower, I might think it would be more fun to buy a new pickup or speedboat made in the USA.. doesn't do great for the Canadian economy.
 

IdRatherBeSkiing

Satelitte Radio Addict
May 28, 2007
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Toronto, ON
The rich will take their money elsewhere, leaving the middle class and the almost rich holding the bag. This is what happened to England some time back when all the rock stars left town. Whoever wrote this drivel has no clue of economics.

It is also a US article.

Only a problem if you let them make money from you while being outside the country. If you block the borders, the rich will have to say home and be taxed.

Of course, you will be paying local people fair wages and therefore paying more for goods and services. I think it would have some issues with inflation. A completely different economic model than the one used now but it could work. Never happen though.
 

captain morgan

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Mar 28, 2009
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So, we're stuck, then. If we tax the rich, they take their money and go away. If we don't tax the rich, they take as much of OUR money that they can squeeze out of us and then go away.

Are you somehow under the impression that 'the rich' aren't paying taxes already?

Might wanna look into how marginal tax rates work.

You reinvest it back into the company, amortized your upgrades and new equipment, expand your business. You don't get taxed on income you put back into upgrades or new staff..

That reinvestment can (and will) occur in a different jurisdiction where the tax rates are lower.

You travel the States quite a bit and spend time in Texas... I shouldn't have to tell you about all the businesses that have fled California and relocated to Texas specifically because the tax rates are lower there.

... It's a helluva good deal for Texas in terms of expanding the tax base, investment in the local economy and communities, employment, etc.... Not so great for Cali though - kinda has the opposite effect
 

JLM

Hall of Fame Member
Nov 27, 2008
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LOL Walter's on his Reddie Rampage.. :lol:

I just got 4 Greens from Walter- I'm beginning to think he knows what he's talking about! (Either that or I've got him edjacated)

Are you somehow under the impression that 'the rich' aren't paying taxes already?

Might wanna look into how marginal tax rates work.

A lot of people don't seem to be able to get it through their thick heads that one man shouldn't have to pay $hundreds of thousands in taxes every year- a lot of which goes to people who refuse to work!

LOL Walter's on his Reddie Rampage.. :lol:

oooooooops I spoke too soon, just got a red from Walter.

Can tell you've never been rich..

You reinvest it back into the company, amortized your upgrades and new equipment, expand your business. You don't get taxed on income you put back into upgrades or new staff..

Charities, they are write offs. You get a receipt for your Red Cross donation and you can claim it against your overall income.

...and so on.

......................................

Great example: I earned an extra $50,000 this year. Rather than getting taxed on that extra income a buy a new Rig.

I can claim 1/3 of the cost of the new equipment over the next 3 years.. so I buy it, and hire another driver.. so I was able to reduce my taxes with an expansion of my business..



If my taxes are lower, I might think it would be more fun to buy a new pickup or speedboat made in the USA.. doesn't do great for the Canadian economy.

I've generally considered myself to be rich, got plenty to eat, a modest dwelling with several comforts, generally met my bills at the end of the month, generally had a couple of bucks left over for beer and whatever and even contributed a couple of bucks to a charity once or twice a year. It just doesn't get any better than that. Of course I never had much money to waste on drivel.
 

MHz

Time Out
Mar 16, 2007
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I'm going to assume the million or so that it takes to get them through court to pay it in the first place is the 2nd win in win/win situation.

Own the only competition that just happens to be a few doors away.
 

MHz

Time Out
Mar 16, 2007
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King of the reds is his only claim to fame, . . . that and his dog sometimes wags his tail when he comes home.
 

Curious Cdn

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Feb 22, 2015
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Don't be fooled by him- there's nothing dumb about him! :)

Dumb isn't what comes to mind. It's that "Oliver Cromwell" certainty of one's righteousness that off-puts ...

Dumb isn't what comes to mind. It's that "Oliver Cromwell" certainty of one's righteousness that off-puts ...

The constant red "-1s" would have translated into " Off with his head" in another time and context.
It's a darned good thing that he can't do that in real life.