Consider this:
• The top 1% of wage earners in this country pay over 33% of the total income tax collected;
• The top 5% pays over 53%;
• The top 10% pays about 65%;
• The top 25% pays about 83%, and;
• The top 50% pays 96% of the total income tax collected, leaving the bottom 50% to pick up the remaining 4%.
Next, consider what these tax dollars go to. A good portion goes to national security and the military, which benefits everyone equally, but another very large portion goes to entitlements, such as welfare and a multitude of other socialist programs. Now think about how disproportionate the costs (taxes) versus the benefits (entitlements) are. Seriously, how many multi-millionaires do you know who are on welfare?The Democrats will have you believe that taxing the rich more than the poor will ultimately benefit society, because the lower class will have more money. But think about it, when you start taxing the rich more, they will start to find tax shelters for their money, in an attempt to preserve the wealth that they have created for themselves. When their money gets tied up in these tax shelters, their level of investments decrease.
So what does this mean? Well, a few things.
First, a decrease in investments by wealthy investors means that they won’t receive any income from those investments. No income means no additional money to be taxed.
Secondly, when wealthy investors are less willing to invest in new companies, those companies usually will end up failing. Failing companies means lost jobs, which in turn means lost wages, ultimately leading to lost taxable income.
The point here is that we don’t want the wealthy to tie their money up in tax shelters. We want them to invest and buy things. We want them to buy their yachts, their luxury cars, their big houses and fancy clothes, because the production of those items requires the labor of less wealthy people. Without wealthy people buying these things, no one would be able to have a job. It’s the only way to keep the economy going.
Trust me, I’d love it if everyone in this country were wealthy, and never had to worry about money, but in a capitalistic society like ours, it just can’t happen. The wealthy will always depend on the lower classes for the products they produce, and the lower classes will always depend on the rich to buy their products. When the rich stop buying, the lower classes will always suffer.
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