Tax Increase for the Rich

Former Budget Director David Stockman is calling for eliminating the current tax cuts imposed under the Bush Administration.

Mr. Stockman said by keeping the tax cuts for the top 2% who earn more than $250,000 will save the rich 100 billion dollars in taxes.

According to the Tax Policy Center joint returns with more than $250,000 adjusted gross income and single returns with more than $125,000 adjusted gross income together are estimated to make up 3.1 percent of households next year. That group is projected to earn 27 percent of all personal income and pay 47.9 percent of all personal federal income taxes in 2009.

Mr. Stockman thinks the government needs this money in this fiscal crisis.
Mr. Stockman is correct. The government does need this money, and a whole lot more! If the government taxed us all at 100% the government would still have a fiscal crisis because the government always spends more than it takes in.

When the government mob started income taxes it was supposed to tax only the rich. Now it has trickled down to tax the ordinary worker. The same thing will happen if Mr. Stockman gets to increase the taxes on the rich. Soon it will trickle down to the not so rich.

If the government mob takes in 100 billion dollars from the rich people the government mob will keep some for their own pockets and dole out the rest to buy votes. It is better to let the rich keep their money and spend it on their staffs and purchases. This will increase sales taxes and employment. This will also increase the velocity of money better than if the government mob confiscates the money and spends it on wars and other non productive enterprises. Spending private money on competitive products will increase the living standard of society, as it always has.

However, we have created a nation of dependents that are willing for congress to “tax the rich”. This act of one group, the non producers, plundering another group, the producers, is how Frederic Bastiat described democracy.

“The art of taxation consists in so plucking the goose as to get the most feathers with the least hissing.” ~Jean Baptist Colbert

Charles Tolleson