If there are any of you that believe that it is unacceptable to tax the wealthy at a higher rate than the rest of the common folks simply because it undermines the concepts of Capitalism I present to you the following.
Adam Smith, widely cited as the father of modern economics and capitalism, wrote those words in the short title The Wealth of Nations, considered to be his Magnum Opus. If you’re interested in seeing the entire section that that excerpt was pulled from here it is.
The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. A tax upon house-rents, therefore, would in general fall heaviest upon the rich; and in this sort of inequality there would not, perhaps, be anything very unreasonable. It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
The described, father of Capitalism, actually believed that the wealthy should be taxed more so than the less fortunate. This is referred to as Progressive Tax and is nothing more than a steadily increasing tax rate that coincides with a steadily increasing taxable base income. The United States currently practices in this tax method but the rate tops out at 35%, significantly lower than many other industrialized nations.
Try this on, Warren Buffett, one of the world’s wealthiest individuals, said during an interview that taxes for lower, middle, and upper middle classes should be cut further while people like himself should be paying “a lot more in taxes.”
Just saying, if we’re looking for ways to help balance budgets, maybe we should consider raising that maximum tax rate a few points.
- Warren Buffett: Please, Raise My Taxes (crooksandliars.com)
- Sixty-one percent of Americans say raise taxes on wealthy to cut deficit (dailykos.com)
- Taxes Lowest Since 1950 (politicalwire.com)