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Tax the wealthy? Yes!

19 Feb

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 – Father of Capitalism

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.

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1 Comment

Posted by on February 19, 2011 in General, Political Crap

 

One response to “Tax the wealthy? Yes!

  1. Pat Reagin

    February 20, 2011 at 7:38 PM

    I think the only person you’ll get to disagree with the “progressive tax” is Steve Forbes. The problem with taxing the rich people at a higher level is that there are so many loopholes, tax credits and write-offs that they can exploit. Don’t get me wrong, we itemize and write-off every last penny we can, but the uber-rich have the resources to do this to an extreme. I might be able to write off and credit to the point where our actual tax rate is x amount, let’s say 7 points lower than our bracket, the rich person, whose rate is 35% might be able to credit and write off his way to 20%, a 15 point savings.

    I’m not saying this is fair or unfair, but think about this: Even with all of these tax loopholes being maximized, the top 10% of wage earners still account for around 90% of the taxes being paid in this country. Isn’t that wild?

     

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