Rich don't pay taxes - Pt 2
A great article explaining what I was talking about in my last post :
http://online.wsj.com/article/SB121124460502305693.html
« September 2008 | Main | November 2008 »
October 31, 2008
October 30, 2008
Nobody gets it. Rich do not pay taxes.
If somebody is in an upper income bracket, Chances are good that they got there because they have capital, and operate a means of production.
They operate that business in order to gain a certain reward. If they cannot get an acceptable reward, they do not take the risks...
When you create a product, you price the product in a manner that will create the acceptable level of reward..
The acceptable level of reward takes into account the Tax burden. So the Tax burden is going to be priced into the product.
So the rich do not pay taxes. The consumers do. If the product cannot compete with the tax burden included, Americans buy cheap Chinese knock offs..
Taxes have always returned 19.5% of GDP. The top marginal rates have been as high as 91% and as low as 28% The portion of the GDP that has wound up in federal coffers has varied very, very little.
Raising taxes just pushes our money to producers overseas who have a lower tax burden. (or where the Government owns the means of Production)
Raising the Taxes on the rich might sound good, but it just aint going to happen. The rich got rich by being good business people and not investing in businesses that did not return and acceptable reward for the level of risk.
October 22, 2008
half Empty or half Full?
October 20, 2008
SNT - Acts 4
I taught Acts 4 yesterday. I was pretty satisfied with how it went.. It remains very humbling to hear my own audio.
So far this year, we have taught all of the book of John, and the first 4 chapters of acts... -
liferoads-snt.blogspot.com