In prior generations, the concept of raising taxes was anathema to the American electorate. That’s one of the reasons why politicians who otherwise cannot agree on anything will agree on tax cuts. Burdening the hard-working citizenry is tantamount to political suicide.
But at the same time, the controversy has always centered on whom you give such breaks. While the Republicans have for years adopted President Ronald Reagan’s “trickle down” theory, Democrats proposed other ideas. Namely, they sought to take the ultra-rich, while giving tax cuts to the middle and lower-income earners.
Naturally, the right pushed back. Raising taxes is un-American, no matter who receives the breaks, or what income they generate. Borrowing directly from Reaganomics, conservatives asserted that burdening the rich will substantially hurt job growth. After all, they reason, it’s not the middle class that are creating opportunities for everyone else.
But in recent years, an increasing number of people have sought tax reform that specifically address the very affluent. Unsurprisingly, this dynamic sparked first within the Democratic camp. However, a poll conducted last month suggests that even conservatives have jumped on the tax-the-wealthy bandwagon.
A just-broadcast Fox News program expressed shock that 70% of Americans favor “raising taxes on annual income over $10 million.” Say it ain’t so, Joe!
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Raising Taxes Won’t Work Unless You Raise It Right
Unwilling to merely accept the survey results, Fox News pundits forwarded their supposedly rationale explanation. Fairness, they said, is an epidemic. In America, you’ve got to earn your fairness; no one is going to give it to you.
And that’s all fine and well. But I can’t help but marvel at how everyday voters will aggressively combat each other, all for the rich. What’s funnier – and alarming – is that the rich couldn’t care less. While we’re bickering, they’re collecting their money.
If only the people, the electorate would recognize that they have the power to squash the elite, but miniscule minority that control the world, they could impart a revolution. But that’s another story for a different day.
On hand is the issue of raising taxes. The Democrats believe that siphoning more income from the ultra-wealthy will help accelerate economic growth. On the other hand, the Republicans argue that taxing the rich will only cause them to hoard money. In reality, they’re both wrong.
Imposing a 70% tax on the ultra-rich won’t do anything because they don’t pay taxes. Very few people earn a salary of $10 million or more. Instead, the affluent attain the bulk of their money passively.
Honestly, you can raise the tax rate for the rich to 100% and it won’t make a difference. Long ago, government officials concocted the tax code to hassle worker-bees, but not the queen bees. Just think: entrepreneurs love starting businesses because they attain ridiculous tax exemptions.
Only an idiot would pay the statutory tax rate. From my estimation, the rich aren’t stupid. As it stands, raising taxes won’t do anything unless you impact passive income. But don’t hold your breath on that issue.
BY JOSHUA ENOMOTO
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