Stop Coddling the Super-Rich

[Ail]

thx1139 said:

osamanobama said:

like i said my dad hasnt made 250k for a while now, i think the last year was 2006. but of course theres small businesses bigger than his who do make 250k.

also you answered your own question. what do you think happens when people spend less. thats right less jobs

Ok 1st off the poster was saying that Personal Income over 250K would be taxed higher.  Yet most small business's simply pass through earning to the owners unless they chose to be a C-Corp.  This is a reason why the argument that fixing corporate rates are bogus with regard that it will hurt small business's. Small Business's are not taxed at corporate rates.

2nd paying people is an expense and expenses lower profits. Taxes come at the very end once profits are determined. You hire the people to increase your profit. Otherwise you dont hire them. So they either let you make more product to sell or service more customers or continue to service customers that are threatening to leave because you arent servicing them well.  So if you hire them it is because it will make your profit higher. So lets say an extra painter can increase your profit from 250K to 275K.  For sake of argument you then pay an extra 5% on that extra 25K of profit. So take home still increases.

The subject is also about the Super-Rich and the Super-Rich are not the people making around 250K of income. Not to mention when it comes to tax brackets the Super-Rich dont make thier money in terms of income that falls within tax brackets. They make the income in the terms of Capital Gains.   So lets stop saying that the rich Income being taxed higher wouldnt make much of a dent because that hides the Capital Gains that they enjoy.  Lets say that the rich should pay tax at the same rates as the upper middle class, but on all the income and gains. Not higher than the upper middle class, but the same. I made about 100K in Capital Gains last year and paid tax at the 15% rate.  Someone working OT in the 25% tax bracket who made an extra $50K because they physically worked thier ass off paid nearly the same amount of tax, but had to sacrifice other parts of thier lives to do so. I just had to have my money work for me and talk to my advisor on average once per month for about an hour.

Thank god ! Someone that actually knows what he's talking about in this thread ;)

Getting tired of people spewing random stuff with no economic background or any knowledge in accounting......