auditor0007
Gold Member
What makes an earned wage more important than a dividend that a dividend should be taxed at a higher rate?
Is it because you perceive that a guy who works 40 hours a week adds more to the economy than a guy with a multimillion dollar investment portfolio?
Or does the multimillion dollar investment portfolio create more return economically when that money is used by banks and companies to build a hospital, to produce a product that changes people's lives for the better?
Whose production did more for the economy as a whole, the assembly line worker of the idle rich guy who invests his money?
Because average working people have to live on their wages. The majority of their income goes to basic living expenses.
Extrodinarily wealthy people who live off dividends, only spend a tiny fraction of their wealth on basic human needs.
That's why wage earners need to be given more consideration than trust fund babies.
"Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration."
-- ABRAHAM LINCOLN, Republican
even though the money in the investment portfolio makes a job possible?
without the capital for business to invest in capital improvements, equipment and R&D, that assembly line wrench turner would not have an assembly line on which to work would he?
Taxing capital gains at the same rate as earned income is not going to hamper investment. Much of what the government provides us is required and must be paid for. Yes, there are things that can be cut to reduce expenditures, but you're not going to be able to cut spending in half.
If government does not provide a safety net, the wealth and power will become so limited that what remains will force changes that go against everything we wish for in a free society. We need the investment money that the wealthy provide, but we also need a strong middle class that is capable of buying goods to keep the economy going. Otherwise, the rich will become poor very quickly because there certainly aren't enough of them to support themselves.