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To talk to various persons of the southpaw persuasion nowadays, you'd think they actually hadn't noticed what happened in the 60s, when Kennedy/Johnson lowered those top tax rates from 91% (fact!) to 75%, and in the 80s when Reagan lowered them from 75% to 50% and then to 33%. There was a brief dip in revenues, of course, as companies tooled up, hired up, created new designs etc. And then revenues blasted off, and have soared ever since, except for brief times when Bush 41 raised rates. Clinton ducked the effect of his tax increases, when a Repub congress cut the Capital Gains tax the following year, and the net revenues stayed up.
Ahh, the free-lunch theory.
Hell, why not abolish capital gains entirely if lowering taxes provide more tax revenue? (btw, Lol).
And why stop there?
Why not remove all income tax as well - that'll surely bring home huge buckets of tax revenue.
The answer is that tax revenues don’t go up when the government lowers taxes, as any child with an allowance could tell you. Charlie needs to get his facts straight. Anyone who thinks like that is comparing taxes to a red light sale at K-Mart. Tax revenues don’t go up because taxes are reduced. Tax Revenues go down when tax rates are reduced.
This is laughable... although I understand they want to recoup those bonuses (which is a good thing)... but 90%? Say you make 250k... 90% taxes means you get 25k... divide that by 12 and you get roughly 2k per month... which is roughly someone making BELOW the average US salary... hehehe... I understand the politics of it all but I doubt that it will even pass... why are they doing this? They KNOW the way they have "phrased" it will make it a DEAD bill in congress... its all grandstanding without any real action? They are trying to draw voter sympathy for politicians but at the same time removing the bite of any actual reform... If it did pass (one in a billion chance), I guarantee Obama will veto it...
90% is applied to the amount you make OVER $250,000. So if your salary or whatever is $250,001, the govt takes 90% of that one dollar you made over $250K, or 90 cents. Plus the (lower) tax on the rest of your pay, of course.
Graduated tax rates always work that way.
What it really means is, if you're in one of these companies, and your boss asks you to work you arse off over a couple weekends on an emergency, and you miss you're kid's Little League championship game and the other things you had scheduled, but he promises you a $1,000 bonus to compensate you for it... you wind up taking home $100 of that bonus.
And according to Charlie Rangel, your State govt will then reach out and pluck that out of your hand, thankyouverymuch, and you get nothing for your extra effort.
And people wonder why high tax rates discourage people from working hard, and result in decreased productivity. (BTW, if you refuse your boss's request for that sacrificial weekend for obvious reasons, guess how much extra the Fed gets from you as a result of its tax increase to 90%? Nothing...)
Frankly if you're an executive in a company that requires a bailout to stay afloat you should be thankful that your crappy company didn't get nationalized and that you're not on your ass looking for another job that will throw money at you for being bad at what you do.
People up top need to start feeling some pain for making poor decisions, this admittedly goes for everyone, but at least in politics you can vote someone out.
Haha... one thousand dollar bonus? As if, better jump that up to 1 million+. I'd work my ass off for a 100k dollar bonus, maybe someone young, hungry and competitive will take the position away from these morons.
90% is applied to the amount you make OVER $250,000. So if your salary or whatever is $250,001, the govbt takes 90% of that one dollar you made over $250K, or 90 cents. Plus the (lower) tax on the rest of your pay, of course.
Graduated tax rates always work that way.
What it really means is, if you're in one of these companies, and your boss asks you to work you arse off over a couple weekends on an emergency, and you miss you're kid's Little League championship game and the other things you had scheduled, but he promises you a $1,000 bonus to compensate you for it... you wind up taking home $100 of that bonus.
And according to Charlie Rangel, your State govt will then reach out and pluck that out of your hand, thankyouverymuch, and you get nothing.
Nope, you are 100% incorrect. The higher tax rates apply to bonuses only.
People who make under $250k and receive a bonus get to keep it at normal tax rates
People who make over $250k and receive a bonus are taxed at 90% on the bonus only
Quote:
The bill would levy a 90 percent tax on bonuses paid to employees with family incomes above $250,000 at companies that have received at least $5 billion in government bailout money.
And people wonder why high tax rates discourage people from working hard, and result in decreased productivity.
Who are these people that "wonder" this?
What a crazy idea.
I, and everyone I work with, heck, everyone I've ever worked with, are incentivized to work hard by the company we work for.
My boss' words: "I can understand if you have a bad day now and then, but if you consistently don't perform to expectations, you'll be shown the door."
Are you seriously claiming that if our tax rates go up, we'll simply go homeless and hungry? What a loony claim.
"Sorry boss. The government wants to raise my taxes. I quit!" LMAO
Last edited by nvxplorer; 03-19-2009 at 01:16 PM..
Simply refuse. I know, I know, everyone is freaking out over those two simple words right now. But it is the simple solution to this possible problem. If the citizens simply stand TOGETHER and say no, there is nothing our government can do about it. The reason we don't currently have more control over the running of this country is because we are so divided there is never an overwhelming majority of people calling for the same action. If we stand together and say no, that is that. No room for debate, no chance of enforcement. That is, of course, unless the government begins to openly threaten us for standing up to them. And when that happens, they will have lost the game. Because there is a difference between governing and ruling, and they will have crossed that line. And only the most cowardly American would stand by and allow them to take your freedom and force unfair laws and taxes down your throat. And since I know most Americans would fight this, I am not worried. We are the driving force, the power, and the will of this country. If we stand together, what we want is what we will get.
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The simple solution.
