You’ve heard that Alexandria Ocasio-Cortez has asked for a 70% tax bracket for “the rich” (never defined). The whole reason is because she feels “the rich” doesn’t pay their fair share. Well, not to be outdone, Minnesota Representative, Ihan Omar (D-Mn) has come out with a higher offer…90%. The reason? Well, she’s classified “the rich” as the top 1% of income earners in America, and says “that’s a starting point”.
It’s truly a case of class warfare with the Dems. They realize they probably aren’t going to get the top 1%’s vote anyway, so why bother? And how much exactly do you need to qualify for such a heft tax burden? The top 1% makes at least $718,766. That equals about 13.4% of all wages.
That means that Omar is considering a tax on these folks of $646,889.40, leaving them with a paltry $71,876.60. And she’s calling that fair?
Let’s be real for a moment, ok? First of all, any regressive income tax, such as the one we have is not fair. The only true fair tax is a flat tax. That’s because 15% is 15%. It doesn’t matter what you have, you pay the same thing as a percentage of income. If you have more, you pay more (which seems to fall in line with AOC’s and Omar’s reasoning). But that’s not enough. Because they aren’t looking at this as funding the government. That has never been the Democrats’ motivation in higher taxes.
Democrats use a regressive tax system for wealth redistribution. It’s a form of communism basically. One for all, all for one, and if you want to strive to make more money, we will correct the imbalance by taxing you more. That is, in a nutshell, their philosophy.
To be honest, at a time in our history, that probably was true. Poorer people were probably put down by the wealthy. And workers needed unions back then because working conditions at the start of the industrial revolution sucked. I get that. But like everything else, today is different. Yes, the wealth gap between the top 1% and the bottom 1% has grown, but you have to ask why. The main reason isn’t because the wealthy are taking advantage of the poor. The main reason is simply because the wealthy understand money better than the poor and take advantage of that. Poor people don’t have the same philosophy when it comes to wealth as the wealthy have. And, speaking in generalities here, poor people don’t have the desire and drive that wealthy people have.
Now, having said all of that, there’s one gigantic point everyone needs to understand. What happens if you raise the tax rate to 90% for the wealthy? Simple, they either find a workaround and figure out how to beat the system, or they live off of what they already have, and stop producing income (like the big dogs in the US Senate do). Then they have no income, they have wealth, and the two are vastly different. So, what’s the end analysis?
If you raise the top tax level that high, you’re going to get fewer tax dollars, not more. When you lower it, these people start earning taxable income again, and contribute to society. But government isn’t smarter than the wealthy when it comes to money, and that’s why government loses every time out on this one.
You’d think people like AOC and Ihan Omar would have realized that by now. I guess they aren’t the smartest people in the room after all!
Carry on world…you’re dismissed!