FACT: Why the Rich should pay LOWER tax rates than the Poor

[tooAlive]

Lately I've heard the argument that the rich are paying a lower effective tax rate than the poor used quite a bit. And while that is true, there is a very good reason for that.

Here's why there is nothing wrong with the rich actually paying a lower effective tax rate than the average worker. And no, it has nothing to do with the fact that 20% of the wealthiest Americans are already paying for 70% of all federal taxes. (Although that is also true. )

[ame=http://youtu.be/H8f59IuijFo]RTS: Thomas Sowell vs Occupy Wall Street and Obama - YouTube[/ame]

-- For those that would rather not watch the video --

Most of the income earned by the wealthy are capital gains, and not taxed at the same rate as regular income because they aren't present at any given year.

For example, you may have stock options that have been accumulating for 5 or 10 years. The year you cash these out, your income will spike up. But only for that year. Capital gains tax takes into account that the income you've just cashed out on has been earned throughout a period of time.

Which is why it is taxed at a much lower rate. Combine that with the income they earned that is taxed at the highest rate, and that's how you have the rich paying a lower effective tax rate. Which in reality, is perfectly fine.

 

[Lakhota]

Are you retarded or on drugs?

 

[bripat9643]

Are you retarded or on drugs?

You didn't watch the video, did you, moron?

 

[tooAlive]

Are you retarded or on drugs?

You didn't watch the video, did you, moron?

Of course he didn't.

Otherwise he would have added a meaningful response to the discussion.

 

[ilia25]

Lately I've heard the argument that the rich paying a lower effective tax rate than the poor used quite a bit. And while that is true, there is a very good reason for that.

Here's why there is nothing wrong with the rich actually paying a lower effective tax rate than the average worker. And no, it has nothing to do with the fact that 20% of the wealthiest Americans are already paying for 70% of all federal taxes. (Although that is also true. )

RTS: Thomas Sowell vs Occupy Wall Street and Obama - YouTube

Right wing lies debunked countless times:
* very few people reach 1%
* the rich pay more in taxes because they receive more income

 

[TNHarley]

What did he say? I have no sound

 

[tooAlive]

Lately I've heard the argument that the rich paying a lower effective tax rate than the poor used quite a bit. And while that is true, there is a very good reason for that.

Here's why there is nothing wrong with the rich actually paying a lower effective tax rate than the average worker. And no, it has nothing to do with the fact that 20% of the wealthiest Americans are already paying for 70% of all federal taxes. (Although that is also true. )

RTS: Thomas Sowell vs Occupy Wall Street and Obama - YouTube

Right wing lies debunked countless times:
* very few people reach 1%
* the rich pay more in taxes because they receive more income

As per your first point, it's quite common for people to move in and out of the "1%" in any given year. Some may have sold a house, a business, cashed out on some investments, ect.. Which may have put them in the 1%. But they might not do the same thing the following year.

And as for your second point, the rich do pay much more in taxes that the poor. I've already mentioned a few times that 20% are already paying 70% of all taxes. But that's usually shot down by liberals claiming that the rich pay a lower effective tax rate than the average Joe.

The video I posted explains why that is perfectly fine. I think you just watched the first minute or so.

 

[Lonestar_logic]

Lately I've heard the argument that the rich paying a lower effective tax rate than the poor used quite a bit. And while that is true, there is a very good reason for that.

Here's why there is nothing wrong with the rich actually paying a lower effective tax rate than the average worker. And no, it has nothing to do with the fact that 20% of the wealthiest Americans are already paying for 70% of all federal taxes. (Although that is also true. )

RTS: Thomas Sowell vs Occupy Wall Street and Obama - YouTube

Right wing lies debunked countless times:
* very few people reach 1%
* the rich pay more in taxes because they receive more income

Thee vast majority of the wealth held by the top 1 percent doesn’t come from income, but from stocks, securities, business equity and other investments.

 

[ilia25]

Right wing lies debunked countless times:
* very few people reach 1%
* the rich pay more in taxes because they receive more income

As per your first point, it's quite common for people to move in and out of the "1%" in any given year. Some may have sold a house, a business, cashed out on some investments, ect.. Which may have put them in the 1%. But they might not do the same thing the following year.

And as for your second point, the rich do pay much more in taxes that the poor. I've already mentioned a few times that 20% are already paying 70% of all taxes. But that's usually shot down by liberals claiming that the rich pay a lower effective tax rate than the average Joe.

The video I posted explains why that is perfectly fine. I think you just watched the first minute or so.

That video is just another pack of lies. Nobody unloads all his stocks in one year.

Most rich remain rich, and very, very few people ever get to 1%.

 

[tooAlive]

What did he say? I have no sound

Muost of the income earned by the wealthy are capital gains, and not taxed at the same rate as regular income because they aren't present at any given year.

For example, you may have stock options that have been accumulating for 5 or 10 years. The year you cash these out, your income will spike up. But only for that year. Capital gains tax takes into account that the income you've just cashed out on has been earned throughout a period of time.

Which is why it is taxed at a much lower rate. Combine that with the income they earned that is taxed at the highest rate, and that's how you have the rich paying a lower effective tax rate. Which in reality, is perfectly fine.

 

[Sallow]

Are you retarded or on drugs?

This is uncalled for..

This poster has shown, thus far, to be a reasonable person.

I don't agree with the views..as it seems you don't.

Argue that.

 

[tooAlive]

Right wing lies debunked countless times:
* very few people reach 1%
* the rich pay more in taxes because they receive more income

As per your first point, it's quite common for people to move in and out of the "1%" in any given year. Some may have sold a house, a business, cashed out on some investments, ect.. Which may have put them in the 1%. But they might not do the same thing the following year.

And as for your second point, the rich do pay much more in taxes that the poor. I've already mentioned a few times that 20% are already paying 70% of all taxes. But that's usually shot down by liberals claiming that the rich pay a lower effective tax rate than the average Joe.

The video I posted explains why that is perfectly fine. I think you just watched the first minute or so.

That video is just another pack of lies. Nobody unloads all his stocks in one year.

Most rich remain rich, and very, very few people ever get to 1%.

It's not about a person unloading all their stocks during a given year. It's about that type of income being taxed differently. There are no lies - just misinformation on those that don't understand what is being talked about.

And getting rich doesn't have to be, nor should be made easy. Life isn't fair. That's the reality, and that's how it should be.

 

[bripat9643]

Lately I've heard the argument that the rich paying a lower effective tax rate than the poor used quite a bit. And while that is true, there is a very good reason for that.

Here's why there is nothing wrong with the rich actually paying a lower effective tax rate than the average worker. And no, it has nothing to do with the fact that 20% of the wealthiest Americans are already paying for 70% of all federal taxes. (Although that is also true. )

RTS: Thomas Sowell vs Occupy Wall Street and Obama - YouTube

Right wing lies debunked countless times:
* very few people reach 1%

When did the right wing claim the top 1% is bigger than 1%?

* the rich pay more in taxes because they receive more income

Are you saying the rich don't pay more taxes than the poor?

 

[tooAlive]

Are you retarded or on drugs?

This is uncalled for..

This poster has shown, thus far, to be a reasonable person.

I don't agree with the views..as it seems you don't.

Argue that.

Thank you, Sallow.

That shows a lot of character on your behalf. We may not see eye to eye, but at least take the time to consider each others point of view.

 

[g5000]

Right wing lies debunked countless times:
* very few people reach 1%

Of course very few people reach the top 1 percent. That is why they are the 1 percent!

Most of those people worked hard to get there, and that hard work should not be punished just because you are jealous. This smacks of class warfare, and of a prejudice that wants to punish the whole group because of the perceived wrongs committed by a few of that group.

* the rich pay more in taxes because they receive more income

They still pay a higher percent of tax than their percent of total income. The top 1 percent earn 17 percent of all income, and so in your "fair share" world, they should pay 17 percent of all income taxes.

Well, surprise! They pay 37% of all income taxes.



On the flip side, Thomas Sowell spoke of class mobility, and to be honest I believe class mobility has become more and more difficult in the US in recent years. I think it has become much harder for someone in the lower 1 percent to reach the top 1 percent.

But our tax rates are not the reason for that. To believe so is stupid.

A giant legislative thumb has been placed on the scales which gives those in certain sectors a hugely unfair advantage, primarily in the financial services sector. It is of great concern to me that 40 percent of all US corporate profits were generated in the financial sector alone. There is a massive unnatural redistribution of wealth going on. From the pockets of the common man into the bank accounts of a select few in the financial services sector.

There are also legislative imbalances which create unfair advantages to existing businesses which virtually lock out any other businesses in the same field from rising up and providing even competition.

Seeing and knowing what to do about these factors requires a much greater understanding than the simplistic class warfare of a "tax the rich more" scheme.

The back-and-forth mock battle between the "tax the rich" class warriors and the self-styled defenders of "job creators" is a huge staged play of misdirection being perpetrated on the American people. One that is designed to shield the true corruptors of our free market system from public view.


And from what I see, the people are in a deep coma, far from being awake and aware of these things.

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[Avatar4321]

How about we just all pay the same rates and we stop treating people differently before the law based on how much wealth they produce? It is after all a Biblical principle

Ye shall do no unrighteousness in judgment: thou shalt not respect the person of the poor, nor honour the person of the mighty: but in righteousness shalt thou judge thy neighbour (Leviticus 19:15)

 

[Avatar4321]

Are you retarded or on drugs?

Can't argue on the substance eh?

 

[ilia25]

As per your first point, it's quite common for people to move in and out of the "1%" in any given year. Some may have sold a house, a business, cashed out on some investments, ect.. Which may have put them in the 1%. But they might not do the same thing the following year.

And as for your second point, the rich do pay much more in taxes that the poor. I've already mentioned a few times that 20% are already paying 70% of all taxes. But that's usually shot down by liberals claiming that the rich pay a lower effective tax rate than the average Joe.

The video I posted explains why that is perfectly fine. I think you just watched the first minute or so.

That video is just another pack of lies. Nobody unloads all his stocks in one year.

Most rich remain rich, and very, very few people ever get to 1%.

It's not about a person unloading all their stocks during a given year. It's about that type of income being taxed differently. There are no lies - just misinformation on those that don't understand what is being talked about.

The lies about the rich being rich only a few years in their lifetime -- this is not true.

And getting rich doesn't have to be, nor should be made easy. Life isn't fair. That's the reality, and that's how it should be.

No, this is not how it should be.

 

[tooAlive]

And getting rich doesn't have to be, nor should be made easy. Life isn't fair. That's the reality, and that's how it should be.

No, this is not how it should be.

So you think the world would be better off if we dismantled the "1%" and redistributed their wealth among everyone else?

No, that's not how it works. There are countless amounts of people who have started out with nothing, and ended up in the 1%. Giving everyone else a free ride to the top is beyond immoral.

That, my friend, would be unfair.

 

[g5000]

I wish everyone would read The Road to Serfdom.

It is like sucking pure oxygen.

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