Why when people make more money they are punished by being in a different tax bracket and having to pay a higher percentage? Shouldn’t it be a flat percentage rate to keep things fair? I don’t understand why one persons success should lead to him or her being taxed more.
It really boils down to politics. There’s this general stereotype that all rich people are jerks who oppress people to get to the top and they don’t really deserve their money. Plus lower and middle class people somehow think they are under-compensated for the work they do, so they think its okay to punish people who took the initiative to do something to increase their income.
Politicians are always running for office so they can’t tax the majority of people, but they can win lots of votes by playing on the stereotype of evil rich people and promising to punish them with taxes so they can pay for programs to help those poor working souls who have done nothing to help themselves.
Its called forced Socialism! You get penalized for being hard working and successful so you can make life better for the lazy and irresponsible!
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Because they have the money and SHOULD be taxed more. I agree 100% with Warren Buffet on this one. Most people in that tax bracket are paying a smaller overall percentage in taxes than the average citizen.
From Freakonomics blog:
Well, let’s start with the ultra-rich. Bajillionaire Warren Buffett has argued that he isn’t being asked to pay his share. He went around his office, asking people what share of their income they pay in income taxes. Buffett’s 17.7 percent tax rate compared a bit too favorably with the 30 percent tax rate paid by his secretary.
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http://abcnews.go.com/GMA/story?id=3869458&page=1
http://freakonomics.blogs.nytimes.com/2008/05/01/taxes-warren-buffett-and-paying-my-fair-share/
20% tax for someone makings $10,000 a year is a bigger burden than 20% tax for someone making 80,000 a year. If you make more, you should pay more YOU CAN AFFORD IT – give the low income people a break. (I’m one of the higher earners)
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It really boils down to politics. There’s this general stereotype that all rich people are jerks who oppress people to get to the top and they don’t really deserve their money. Plus lower and middle class people somehow think they are under-compensated for the work they do, so they think its okay to punish people who took the initiative to do something to increase their income.
Politicians are always running for office so they can’t tax the majority of people, but they can win lots of votes by playing on the stereotype of evil rich people and promising to punish them with taxes so they can pay for programs to help those poor working souls who have done nothing to help themselves.
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We’re slowly in the process of being completely controlled!
I know..it’s not cool AT ALL!
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It allows the government to have more tax money which they can use to give free bailout money to horribly mismanaged corporations. Then the executives can use that money for essential company services like redesigning their offices to the tune of a million dollars. Or allowing the auto industry to continue a failed business model. The fair solution would be to adopt a flat tax rate. But that will never happen. The rich may be getting taxed more but it appears they will ultimately recieve more in bailout money than they ever will pay in taxes.
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Common sense.