Wednesday, March 09, 2005

How are we going to pay for it? Lets tax the rich!

Its what everyone says they are going to do to get extra money in taxes. Both sides say it. They say it in different ways, but they both effectively tax the wealthiest Americans more than anyone else. Why not? They make more they pay more. However the Democrats specifically make it a leading point in their talking points to make sure everyone knows they are going to only tax the "rich". Oh course then it is very funny when the leading city of which houses some of the richest democrats starts a tax revolt.

It is almost funny how one person can say that the solution to all our budget problems is to tax the rich when it has been proven several times that a high tax of the wealthiest of Americans causes massive amounts of poverty and joblessness. Someone is going to spout off their mouth and say something to the effect "No it doesn't, you dont have any proof of that." Of course to this person's dismay, I do. I turn to the 90's, Bill Clinton was having some fun with Cigars and Interns and raising taxes. Clinton's tax increase was amazingly supported by the "republican" congress and passed. However he denied the 99 tax bill to cut taxes and thus started a spiral downward.

Move back a little further. Reagan cut the highest tax rates in half. The economy of the 70's which was considered almost depressionary continued until the tax break. Funny how when people get more money they spend more money and create millions of more jobs. The large push of money flowing actually increased tax revenues and dropped unemployment drastically. We collected more taxes at a lower rate because everyone was spending the new money they got. Investors invested more, businesses bought more stock, publishers published more books, manufacturers manufactured more goods......People bought more.

Bump ahead a couple more years. The "luxury tax" was implemented. This threw a 10% tax on all "luxury" items, or high priced goods that a certain amount of americans would never see let alone own. To give you an idea, most yachts are several hundred thousand (most though get up into the millions and look better than where I live right now, even if it was in a hurricane). Most "rich" people who thought a new yacht would be nice instead threw their money back into the bank. People dont beomce rich by being reckless. They instead went overseas and bought a yacht made in Europe or any where but America where there was no luxury tax. According to representative Kenndy (D-RI) since the repeal of the luxury his states has produced 600,000 new jobs in those fields. Personally I didnt think there was 600,000 adults of working age in Rhode Island but aside from that it is a huge increase in that little state. Taxes on the "rich" simply do not work.

Unless you are running for office.
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