Raising taxes on the rich is not a good idea

Wiseacre

Retired USAF Chief
Apr 8, 2011
6,025
1,298
48
San Antonio, TX
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.
 
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.

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

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

"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?
 
Cutting out the loopholes is the same as a tax increase. I have no problem with this, so long as it actually increases revenues.

"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?

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.....
 
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.
 
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.

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

"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?

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

"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?

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.

I didn't know that, but I do now. Thanks for clarifying.
 
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.
 
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.

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

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

"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?

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.

True.

And when you devise a system that makes this situation impossible get back to us. Until then stop acting like closing loopholes are a solution. We've had decades of closing loopholes and still our government spends more than it takes in.
 
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.

You mean like taxes corporations pay even if they don't earn a profit?
 
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.

Class warfare. The rich will go elsewhere abandoning their own country that has become hostile to Liberty...
 
Cutting out the loopholes is the same as a tax increase. I have no problem with this, so long as it actually increases revenues.

Democrats created most of the loopholes. Furthermore, what they call "loopholes" are what business owners call "business expenses." Depreciating your equipment is not a loophole.
 
I think the majority of investment money in the USA is from sources outside of America anyway.

So let the rich pack up and move if they want.
 
Last edited:
According to the website Economy in Crisis, "Foreign ownership refers to ownership of assets of a particular industry by foreign controlled domestic U.S. Corporations (FDC) 50% or more owned by a foreign entity."[1]

By that definition, the percentage of foreign ownership as of 2002 by industrial sector was as follows:[2]

Sound recording industries - 97%
Commodity contracts dealing and brokerage - 79%
Motion picture and sound recording industries - 75%
Metal ore mining - 65%
Motion picture and video industries - 64%
Wineries and distilleries - 64%
Database, directory, and other publishers - 63%
Book publishers - 63%
Cement, concrete, lime, and gypsum product - 62%
Engine, turbine and power transmission equipment - 57%
Rubber product - 53%
Nonmetallic mineral product manufacturing - 53%
Plastics and rubber products manufacturing - 52%
Plastics product - 51%
Other insurance related activities - 51%
Boiler, tank, and shipping container - 50%
Glass and glass product - 48%
Coal mining - 48%
Sugar and confectionery product - 48%
Nonmetallic mineral mining and quarrying - 47%
Advertising and related services - 41%
Pharmaceutical and medicine - 40%
Clay, refractory, and other nonmetallic mineral products - 40%
Securities brokerage - 38%
Other general purpose machinery - 37%
Audio and video equipment mfg and reproducing magnetic and optical media -
36%

Support activities for mining - 36%
Soap, cleaning compound, and toilet preparation - 32%
Chemical manufacturing - 30%
Industrial machinery - 30%
Securities, commodity contracts, and other financial investments and
related activities - 30%

Other food - 29%
Motor vehicles and parts - 29%
Machinery manufacturing - 28%
Other electrical equipment and component - 28%
Securities and commodity exchanges and other financial investment
activities - 27%

Architectural, engineering, and related services - 26%
Credit card issuing and other consumer credit - 26%
Petroleum refineries (including integrated) - 25%
Navigational, measuring, electromedical, and control instruments - 25%
Petroleum and coal products manufacturing - 25%
Transportation equipment manufacturing - 25%
Commercial and service industry machinery - 25%
Basic chemical - 24%
Investment banking and securities dealing - 24%
Semiconductor and other electronic component - 23%
Paint, coating, and adhesive - 22%
Printing and related support activities - 21%
Chemical product and preparation - 20%
Iron, steel mills, and steel products - 20%
Agriculture, construction, and mining machinery - 20%
Publishing industries - 20%
Medical equipment and supplies - 20%
Foreign ownership of U.S. corporations - SourceWatch
 
If you raise taxes on the rich, you wil hurt their feelings. They will take their money and go home.

If you make it too hard on the rich, nobody will want to be rich anymore
 

New Topics

Forum List

Back
Top