Monday, December 10, 2012
Let the Rich Pay Their Fair Share????
When you hear the phrase, “Let the rich pay their fair share,” it is obvious that you are listening to a Democrat. I’m not trying to start a discussion of Republicans verses Democrats. But you do have to wonder what the words ”fair share” are all about. I can agree with the action, of raising taxes on the rich a little more—but it has no justification as being “their fair share.” This is a selling point addressed to the Hoi Polloi to garner votes in Congress; admittedly, it kind of works.
I’ve pointed out in the past, that whatever the tax rates on the rich were, whether 90 percent or 28 percent, government revenues NEVER increased noticeably. The amount of taxes taken in has been pretty constant. See graph below.
There are two groups of people who get no W-2 forms from employers, the real rich and those in the underground economy (working for cash). The underground economy is thriving.
If you remember newspaper reports on the Katrina Hurricane and read between the lines, the government was overwhelmed when trying to provide relief. The footprint of people paying taxes was minuscule to the population working for cash only. All Katrina did was ruin a way of life that had been fed by government entitlements and relief programs for 3 decades. I imagine someone will write a book about it, sooner or later.
Workers making over 250K are few and far between. This group includes rock stars, sports players, movie stars, and CEO’s to name a few. The one thing that stands out among rich people paying a lot of taxes, is the notion of "What am I getting for the extra money I pay?"---My answer, not much.
In today’s society, being poor and collecting food stamps entitles you to keep your cable and cell phone. Plus being poor gives you more rights. A single mom with 2 kids making 29K a year is entitled to about an additional 30k in benefits. But the single mom with 2 kids, making 60k a year, pays taxes and doesn’t get those free benefits.
Life is hard, but why take money from someone who works hard and give it to someone who gets rewarded for earning less, with better benefits? Has anyone ever accused poor people, or rich people of being stupid? But we come to Obama's mantra “Poor people deserve help to become part of the middle class.” Gee, maybe that's what Socialism is all about.
"Poor people" (notice the quotes) are gaming the system, it is a way of life. I'm all for taxing the rich, and while we're at it, let's tax everyone including the poor. There is no free ride. If you pay nothing in, you get nothing back.
I heard a Congressman say, "These people that pay no Federal tax, pay other taxes." My rebuttal, "So do I!" In California, we are almost to a 10 percent sales tax, and it has happened so slowly, that the absurdity of the rate has escaped notice. So when you hear them say "Tax the rich," reality is, Congress wants more money to spend.
Maybe it is time to draw the line. We don't have a problem with too little tax money, we have a problem with a Congress too busy buying votes for re-election. Of course, I have often suggested that the lead content of the water in Washington D.C. is a tad on the high side. That might explain the insanity in Congress right now. Of course if you look at John Boehner, leader in the House, he doesn't strike me as a water drinker. Whatever he drinks, let's get him another bottle--he's doing a pretty good job.
Copyright 2012 by Jim Brubaker