"This is not class warfare; it's math," is what Obama said about his plan on raising taxes for the rich to make $1.5 trillion dollars in ten years for the US. Would imposing a higher tax rate for the wealthy in America really in the long run of things, help us out. Taking money away from the rich would have a negative effect on the economy because the wealthy would cut down on their spending. With America’s economy in a recovery this is not the time to be taking money out of the flow of money cycle of the US. Much like the problem in Greece is that their government is spending more than they are making. Does this sound familiar? American need to cut back on spending through unneeded agencies and scaling back on new spending. We need to fix the problem and not try to cover it up by increasing taxes to the rich.
5 comments:
Yes, this does sound familiar. It is happening as we speak. I agree with your statement of how the Fed needs to cut back on spending through unneeded agencies. The Fed currently has a budget to spend $6.3 trillion of our tax dollars. Looks like I won't be getting anything for my birthday this year!
What does the "rich" we are talking about include? If you are making 5 million dollars, are you really spending all that money currently? If not then it is not taking money out of the flow is it and if it was taxed then maybe that money would be spent by the government back into the flow and improve the economy, correct?
When I think of rich people in America I think of the top 10% which is mostly business owners. If you impose a higher tax on them they aren't going to change their life style, they are going to change the way they run their business. The most likely solution for them is increase the price of their product which would also change the flow of money cycle.
You discuss cutting into the rich would decrease spending but wouldnt that extra govt revenue be spent somewhere else?
I personally believe that tax cuts should not be any different depending on the wealth of the respective class. Upper class people should not be responsible for supplying the governmwnt with any more money than anyone else. The top 1% of Americans may hold almost 50 percent of the wealth, but when you think of wealthy people, what do you think of? I think that the upper class spends money. We can all agree on that. The more money people have, the more money they spend, whether it be in investments, consumerism, or tourism. If you had an abundance of any product, wouldn't you be less careful about how you spend it? I think Sarah brings up a great point. I think the current system of government is 'Resenting the Rich.' One of the main problems I see with our government is the fact that congressmen and women are getting supplied with top notch healthcare and other amenities, while the average American has to pay for everything on his/her own. When I think of the American government and where it is headed, I shudder. Unless the government starts caring less about making everyone 'equal' and worries more about the trillions of dollars of debt we have, America will not be a world superpower in 20 years.
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