Saturday, January 17, 2015

Taxes and Class Warfare

During the 1950s and early 1960s, the top bracket income tax rate was over 90%--and the economy, middle-class, and stock market boomed[1]. Tax rates for the super-rich are lower than they have been in 50 years.

Those that scream ‘class warfare’ whenever someone remotely suggests a higher tax rate for the media (owned by the super-rich) are duping the super-rich. Although class warfare exists, it is the rich that declared war. Hundreds and in some case, thousands of workers make a company successful, yet the bulk of the profit never reaches the people doing the real work.

Is it a redistribution of wealth to tax the super-rich so that the real producers of wealth gain some benefit? Perhaps it is nothing more than a fairer form of capitalism.

Think about this when people argue that higher taxes will take away the incentive for company owners to expand.

A person with 20 million dollars of profit nets 13 million dollars after paying 35% in taxes. If this person invests in the business and show 25-million in profit, but pays 40% in taxes, he or she nets 15 million. Why would I not want to grow my business and pick up an additional 2 million dollars? Imagine, squeaking b on 15 million dollars a year! When taxes for the super-rich were at 90% new companies and investments thrived.

Think about another truth. The average working class American wanted a Federal Income Tax. The media sold us the idea of an income tax because the wealthy would be taxed while the worker would pay a relative small amount.

Think about another truth. How many wars were fought (at huge cost of life and treasure) to protect the wealthy companies whose foreign investments were in jeopardy? The same companies that outsource jobs rely on our military to protect their foreign operations. However, do not tax them.

Look at McDonalds. The average worker earns $14,600 per year and qualifies for government assistance (at taxpayer’s expense). The top five executives collectively receive over 24 million dollars per year!

Look at Wal-Mart and other businesses that encourage employees to apply for government assistance. Our tax dollars supplement Wal-Mart!

Close every loophole and increase the tax rate on the top 2 percent. Period.