Raising taxes on the rich is not a good idea

Discussion in 'Politics' started by Wiseacre, Apr 12, 2011.

  1. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Most wealthy people know how to make money that doesn't count as earned income. Or they find ways to hide it, move it offshore, or in some other way avoid the extra tax. You just don't get the extra revenue you thought you were going to get, it is ALWAYS overestimated. And remember this, we tax earned income, not the wealth people already have. So they put their money in long term instruments where the return is not taxed until they realize the interest dividends.

    You know what happens when you raise taxes on a small business? They have to raise prices, cut expenses somewhere else, eat the loss, or go out of business. Liberals always think the 'eat the loss' option is the only one that will happen, but I don't think so. Sometimes business expansions or new startups are delayed because the ROI is reduced. People do lose jobs or their hours are cut back or new jobs are not created. There is an economic cost.

    There are rich people that sell out, pack up, and move out of the country. Raising taxes may increase that number, plus it deters rich people from other countries coming here instead of somewhere else with lower taxes. It isn't just the loss of income tax revenue, it's less money spent here and invested here. That means less capital and less economic growth.

    I think the issue of raising taxes on the rich is a poor idea that is an additional way to divide the country. On the revenue side, I think it would be better to examine all the tax deductions, loopholes, breaks, and subsidies first and get rid of the ones that are not cost effective. Which I'm sure is most of 'em. We can get more revenue just from that, before we begin to talk about raising the tax rates.

    Or you can look at a flat tax or consumption tax, but if there's one thing I'm sure of it's that we need to grow this economy and create more jobs if we are ever to become financially solvent.

    BTW, I didn't address spending, save it for another thread please.
     
  2. auditor0007
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    auditor0007 Gold Member

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    Cutting out the loopholes is the same as a tax increase. I have no problem with this, so long as it actually increases revenues.
     
  3. Mr. H.
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    Mr. H. Diamond Member

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    "Loopholes" are provisions that allow businesses to keep more of their own money as a result of investment in that particular revenue generator.

    If I spend $1,000 as a necessary expense of conducting a business in an effort to generate revenues then why would I have to also pay taxes on that $1,000?
     
  4. kyzr
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    kyzr Gold Member

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    Loopholes are tax breaks that most of us would oppose, like the American Jobs Creation Act, that actually gave tax breaks to move jobs over-seas. A good tax-break would be for jobs created in the US. Big oil doesn't deserve tax breaks unless they manage the price of oil. If it stays below a certain price, they get a tax break, if it goes up so do their taxes.....
     
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  5. iamwhatiseem
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    iamwhatiseem Gold Member

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    Last I saw - I think it was 53% of EMPLOYED Americans get more back in taxes than they pay in...gee...that might have something to do with it.
     
  6. auditor0007
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    auditor0007 Gold Member

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    Come on now, we both know that I am not talking about direct business expenses. There are plenty of subsidies and tax breaks that have nothing to do with conducting business in a free market.
     
  7. Mr. H.
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    Mr. H. Diamond Member

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    I didn't know that, but I do now. Thanks for clarifying.
     
  8. Mr. H.
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    Mr. H. Diamond Member

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    "Manage the price of oil"?

    Puh- leeze....
     
  9. ClosedCaption
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    ClosedCaption Diamond Member

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    Kyzr's post is spot on.

    I'm all for cutting taxes to create jobs. But I'm against cutting taxes them hope like he'll they create jobs. That's just dumb.

    That's like handing over the money before your car is repaired.
     
  10. asterism
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    asterism Congress != Progress

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    Research the AMT for a look at the government's version of "cutting out the loopholes." Then tell us if you think that was a good policy.
     

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