Quote:
Originally Posted by petch751
How dumb are people? Do you really believe that Obama would go after "the rich"? Of course not.
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Actually Obama and the Democrats have gone after the rich. The top tax bracket rate increased, the capital gains tax rate increased, and now there's an additional 0.9% payroll tax on high-wage earners, and a 3.8% tax on the unearned income of high-income individuals.
However, the rich end up having the last laugh because after all those tax increases, they're still coming out ahead.
Income Inequality Worse Under Obama Than George W. Bush
And why is that? Progressive tax systems, those which tax higher-income individuals more than anyone else, create a perverse incentive for the government to enact policies that
widen the income gap in order to maximize tax revenue.
The top 1% earns 18.7% of the income, but
pays 35.1% of the federal income tax revenue, roughly
twice their fair share which is 4 times what the middle class pays (the middle class pays only about
half of their fair share of the federal income tax compared to their share of the income). The problem with our country's progressive tax system is that it creates
a perverse incentive for the federal government to enact policies that promote as wide of an income gap as possible in order to maximize tax revenue.
Others have noticed, too...
Quote:
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"[Economist Anatole] Kaletsky argues that over-reliance on progressive taxes creates "a perverse incentive for governments to promote income inequality. If the solvency of the state and the ability to fund basic services for the poorest people in society depends on the rich getting even richer, it is tempting for even the most progressive politicians to support widening inequalities."
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The liberal case for regressive taxation - Salon.com
As long as the U.S. has a progressive tax system, the incentive remains
to keep the income gap as wide as possible, and this is why: When the top 1% loses income share, the federal government loses
twice that much in tax revenue. But when the top 1%
gains income share, the federal government consequently gains twice that much in tax revenue.
Think about that
very carefully.
And true to form, Mr. 'tax the rich's" presidency (Obama) has resulted in EXACTLY what was predicted by the economist quoted above. The income gap has grown wider, faster under Obama.
The knee-jerk "tax the rich" mantra has got to go. People really need to start using critical thinking skills to think things through and make sure they really want the negative unintended consequences that result from simplistic political pandering and slogan-induced policy.
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