Ready For Higher Taxes?

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!

Advertisements

15 thoughts on “Ready For Higher Taxes?

      1. Oh, I’d be all over a flat tax. It’s the only fair tax system I’ve seen to date. If you REALLY want to soak the rich (as Elizabeth Warren and Kamala Harris do), you have to do a wealth tax, rather than an income tax. And if you want to keep the poor in your place, go with a sales tax since most of what they earn goes to buying stuff. You HAVE to fund the government somehow…but you DON’T have to redistribute wealth.

        Like

      2. So true! All the politicians are doing are hurting those folks that are getting the money, and I would be in a lot of cases, those kids needed the money a LOT worse than the parents who died.

        Like

  1. Even if the argument that kids of wealthy parents would be getting money they had not earned was made, if that money was taxed multiple times, what does it matter how much someone leaves to another person at the time of their death? In all honesty, I find the idea of the estate tax to be convoluted.

    Liked by 1 person

    1. It’s called “greed”. Obviously, Congress feels that the person leaving the money to the heirs is dead and so they really don’t care (read that as they can’t vote for them anymore except in Chicago). And the kids getting the money are probably just happy getting something that they don’t even know they’re paying an outrageous fortune to the federal government. My be is, though, that the kids DO know, and aren’t happy about it.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s