miami_thomas
VIP Member
- Jan 20, 2011
- 1,019
- 86
- 83
The fact is we always attack the rich. It works well in elections to Attack the rich guy simply because they are small in numbers. So if you want to win the election it is best to try and get the lower classes on your side because they are more in numbers and therefore more in votes. Problem with this strategy is that most politicians know you cannot get all you need from just the rich because they are small in numbers and have more options. I say most because the idiots in California still have not figured that out. You would think they would look at Detroit and realize but not yet.
Could they attack them a little more maybe? But the question is how much more and how you can effectively do so. The problem is the rich dont get their money the same as most everyone else. They tend to get large portion of their money from some type of investment. So it makes it difficult to tax the wealthy since almost half of their money made simply is not income. The argument is to just start taxing capital gains, interest, and dividends at a higher rate which is currently at 15%. There is a problem with this strategy and that is that those hit everyone not just the super rich. The upper say 5% can afford to put their money somewhere and wait out the storm. In other words dont make money until the tax rate goes back down. This will have a huge impact on the economy as you lose that activity.
Then there is the impact on those of us that dont make enough money to sit on it. We will suddenly be hit in our 401k by the decreased activity in the market. We will be hit when we sell our house. The seniors will especially be hit both in the stock market and in their returns. So this strategy sounds great in political speak but in terms of reality not so great. Then there is the idea like France has of just increasing their income taxes up to 75%. But this is just suicide as well because you can only tax income really if they are US citizens. They will bail on this country in a heartbeat just like they are in France.
So where does that leave us? Well we republicans have already realized the reality. There is only so much we can do in terms of increasing revenue. We realize that we have to really attack the spending. The fact is we know raising taxes does not equal increased revenue. In fact increased taxes on investments usually will mean decreased economic activity and therefore decreased revenue. Look at now with Obama and you should already know this is true. Heck there is just decreased economic activity now among the investors just because of fear and not even realized yet. So you Democrats can keep living in fantasy land or you can come down to reality and start having a real conversation with us republicans about what we can REALLY do.
Could they attack them a little more maybe? But the question is how much more and how you can effectively do so. The problem is the rich dont get their money the same as most everyone else. They tend to get large portion of their money from some type of investment. So it makes it difficult to tax the wealthy since almost half of their money made simply is not income. The argument is to just start taxing capital gains, interest, and dividends at a higher rate which is currently at 15%. There is a problem with this strategy and that is that those hit everyone not just the super rich. The upper say 5% can afford to put their money somewhere and wait out the storm. In other words dont make money until the tax rate goes back down. This will have a huge impact on the economy as you lose that activity.
Then there is the impact on those of us that dont make enough money to sit on it. We will suddenly be hit in our 401k by the decreased activity in the market. We will be hit when we sell our house. The seniors will especially be hit both in the stock market and in their returns. So this strategy sounds great in political speak but in terms of reality not so great. Then there is the idea like France has of just increasing their income taxes up to 75%. But this is just suicide as well because you can only tax income really if they are US citizens. They will bail on this country in a heartbeat just like they are in France.
So where does that leave us? Well we republicans have already realized the reality. There is only so much we can do in terms of increasing revenue. We realize that we have to really attack the spending. The fact is we know raising taxes does not equal increased revenue. In fact increased taxes on investments usually will mean decreased economic activity and therefore decreased revenue. Look at now with Obama and you should already know this is true. Heck there is just decreased economic activity now among the investors just because of fear and not even realized yet. So you Democrats can keep living in fantasy land or you can come down to reality and start having a real conversation with us republicans about what we can REALLY do.