ScienceRocks
Democrat all the way!
- Mar 16, 2010
- 59,455
- 6,797
When the American economy was rockin' and rollin' back in the 60's and 70's we had a top tax rate on the wealthy of 91% and a 10% usery law that prevented charging more than 10% interest.
The peasants were also allowed to deduct 100% of the interest they paid on everything on their income taxes both state and federal.
Until Ronald Reagan created the largest tax increase on the middle class in history when he took the interest deduction away, except for your home mortgage -- and he WANTED to take that away too.
Having a high tax rate on the uber wealthy serves two purposes.
1) It raises more money to pay down the country's debt -- thanks to Bush's Follies.
2) It motivates the wealthy to use their remaining money to start more businesses and expand the one's they own in order to get more money.
If a man has 100 million dollars rs a year coming in from his factory, and the government lets him keep 92 million, he has little motivation to expand his plant or start another business.
If he had 100 million dollars a year coming in from his factory, and the government lets him keep 10 million, he has LOTS of motivation to expand his operations and start more.
He still owns his yacht and mansions and now needs more money to KEEP them just like his employees need to make money to pay their rent / house payment.
He's still a rich man, nobody took his factory away from him, but with a high tax rate he pays more to society for the better life he is receiving from society. And that helps society.
Proof of my statement is that when we HAD high tax rates on the wealthy ... they DID expand their businesses and start more. Times were booming.
But, since Reagan and the massive give aways to the wealthy under the pretense it would create more jobs ( which has been proven untrue ) we have cut the taxes on the wealthy and they just hide their money overseas and sit on their wealth.
The conservatives claim that giving welfare to the poor encourages them not to work.
Well, tax cuts for the rich are the same thing as welfare to the poor --- only it's welfare for the RICH.
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It's kind of weird how good it was then and now how bad it is today since the rich have been getting away with this crap.
We spent far more on infrastructure, science, r&d and education when we had the revenue to do so.
Or that rich person can simply put his wealth into tax free shelters and wait out your attempts to tax him into oblivion! I wish just a few of you progressives had taken something in college that dealt with reality.
AT 2%? There is THAT much tax free bonds? lol
Talk about NOT living in reality!
I really don't understand why they defend the 1% so much while crapping on the rest of this country....You'd think they'd want at least 20% of this country to become wealthier and open up their own businesses. We'd be a stronger country once this occurred.
Most of these loserterian posters must get paid by that 1%!