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LookieNoNookie -> RE: Who is going to give up profit? (11/28/2012 4:59:29 PM)
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quote:
ORIGINAL: tazzygirl
Warren Buffett has a very valid point. For years we have heard that if taxes were raised on the rich, they would simply stop investing. That never made sense to me. Why give up profits? Are they really going to give up 70% profit because they cant make 85%?
SUPPOSE that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”
Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.
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A huge tail wind from tax cuts has pushed us along. In 1992, the tax paid by the 400 highest incomes in the United States (a different universe from the Forbes list) averaged 26.4 percent of adjusted gross income. In 2009, the most recent year reported, the rate was 19.9 percent. It’s nice to have friends in high places.
The group’s average income in 2009 was $202 million — which works out to a “wage” of $97,000 per hour, based on a 40-hour workweek. (I’m assuming they’re paid during lunch hours.) Yet more than a quarter of these ultrawealthy paid less than 15 percent of their take in combined federal income and payroll taxes. Half of this crew paid less than 20 percent. And — brace yourself — a few actually paid nothing.
This outrage points to the necessity for more than a simple revision in upper-end tax rates, though that’s the place to start. I support President Obama’s proposal to eliminate the Bush tax cuts for high-income taxpayers. However, I prefer a cutoff point somewhat above $250,000 — maybe $500,000 or so.
Additionally, we need Congress, right now, to enact a minimum tax on high incomes. I would suggest 30 percent of taxable income between $1 million and $10 million, and 35 percent on amounts above that. A plain and simple rule like that will block the efforts of lobbyists, lawyers and contribution-hungry legislators to keep the ultrarich paying rates well below those incurred by people with income just a tiny fraction of ours. Only a minimum tax on very high incomes will prevent the stated tax rate from being eviscerated by these warriors for the wealthy.
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In the last fiscal year, we were far away from this fiscal balance — bringing in 15.5 percent of G.D.P. in revenue and spending 22.4 percent. Correcting our course will require major concessions by both Republicans and Democrats.
All of America is waiting for Congress to offer a realistic and concrete plan for getting back to this fiscally sound path. Nothing less is acceptable.
In the meantime, maybe you’ll run into someone with a terrific investment idea, who won’t go forward with it because of the tax he would owe when it succeeds. Send him my way. Let me unburden him.
http://www.nytimes.com/2012/11/26/opinion/buffett-a-minimum-tax-for-the-wealthy.html?_r=0
Thoughts?
You don't need to ramble, however, the point probably wouldn't have been made if you hadn't.
The people who make exceptional income don't need to have exceptional discounts.
If you knew my actual name, you'd find that I, along with Bill Gates (I don't even remotely compare my income to his) and others, living in Seattle, put my moniker along with his and said in the Seattle Times, back in 2004, when Bush Jr wanted to lower the rates of those who have done well..."we don't need this....indeed, we don't want this...indeed, it's inappropriate" (reference: lower tax rates).
No business person is going to arbitrarily (in this market) give up margins....but we will...gladly....give up taxes because we've done better than most.
Stop assuming the (rich)....I prefer...."wealthy" ("rich" is nebulous) want to crush those who aren't.
The wealthy know better.
The wealthy know that if buyers can't afford their products...the whole thing goes to shit.
Lose that whole "the wealthy are out to fuck us".....they're not.....they know you pay their bills.
Discern.
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