The problem with the Tax more from the rich mentality is that they seem to think the Rich person is taking their money putting it in coffee cans and burying it in the back yard so the Poor people don't get to touch it. When reality is, that money, their profit, goes right back into the system through investments which get used to fund businesses which pay incomes of the poor and middle class.
To put it on an average Joe level. I pay a kid from down the street $20 to mow my yard because I have extra money left at the end of the pay period. Government comes and decides to "steal" more taxes from me. I am still going to pay my bills and buy my food and do everything I did before, but I'm not going to have that $20 anymore so guess who is out. That is right, the kid who I will no longer be able to pay to mow the yard.
Yes the rich won't feel it if we increase the taxes, they will still have more than enough money to do everything they do today. What is actually getting taken is the money that is left over that is used to lend and fund the businesses that pay the rest of us. Raising their tax will not increase one person's salary, it will not make anything cheaper. All it does is make Government bigger.
Originally Posted by: PackFanWithTwins
No, but those rich people are investing it in real estate, stock markets, vacations, yachts or big companies, where of every 10 dollars invested, 20 cents get to that average Joe.
Trickle down economics asumes that all that extra money somehow gets pumped back into a market where the common man benefits. It's a crazy idea where supply is the main factor for job creation, rather than demand.
If you have $20 million laying around, odds are you're not building a factory in the US or are investing in start-ups. You either expand by outsourcing or invest in the stock market. Both ways where there's no money trickling down.
And the money that does get invested in start-ups goes back up with, depending on the risk involved, quite some intrest.
Making taxes more progressive improves spending room on the bottom range of incomes, while still having the funds to help those in need. I'm sitll not quite sure if we're arguing for the full abandonement of a welfare state here, as that seems to be the only way to get that low, flat tax to ever happen.