When I listen to politicians and others debate the issue of taxes these days I mostly hear noise. My personal view is that raising taxes never has and never will spur economic growth and according to historical rate to revenue comparisons it will never increase government revenue. The only way to increase tax revenue is to grow an economy that creates jobs and creates more taxpayers. But in the midst of all the noise there are a few comments that pierce my veil of just noise and give me pause. One is the repeated rant by President Obama claiming that all the millionaires, billionaires and corporate jet owners need to “pay their fair share”. It sets a tone of penalizing accomplishment that will surely demoralize the risk takers and dream seekers. Why jets? What is next; boats, RV’s? I bet there are more Americans aspiring to buy a nice RV than a jet. Aren’t RV’s a luxury item? If the goal is to raise tax revenue, I bet an RV tax would raise more revenue than jets. But according to Obama, that would not be “fair” because even though RV ownership is viewed by some as elite it would not be a populist endeavor. Most people do not aspire to buy a jet so those who own one become the scrawny kid easy to pick on and difficult to defend.
There is an implication that republicans notoriously defend the vital interest of millionaires at the expense of everyone else. I couldn’t help but think, really? I was lucky enough to experience the American dream of building a company that required me to write a 7-figure check to the federal government. Conversely, as a serial entrepreneur I have experienced losses of equal proportion. The government was not there to bail me out yet I continue to be a serial entrepreneur. Although in the face of uncertainty of taxes and regulation my enthusiasm is tempered and I am somewhat resigned to the concept that less is more. The real bad news is that in the past I have created hundreds of jobs but I am reluctant to do it again. I wonder how many other risk takers feel the same. The fact is that the number of millionaires and billionaires fluctuate and the members of those clubs drift in and out and rarely remain for long periods of time. I began thinking about the logic of the argument so humor me as we look at a few numbers.
- There are about 308 million people living in the US.
- About 135 million people file tax returns.
- About 100 million people owe taxes on those returns.
- There are about 3.1 million millionaires in the US.
- There are about 400 billionaires in the US.
- The top 50% of taxpayers make $32,879+ and pay 97.1% of all taxes in US.
- The bottom 50% making less than $32,879 paid the remaining 2.9%.
- The top 10% earn at least $103K and pay 71.2% of all taxes.
Think about that for a minute. The top 10% of the wage bracket in the US begins at $103K in annual income. If you own a home, have two cars and a child or two, it will take you a very long time if ever to save and invest enough money to become a real millionaire. There are only about 1 million people in the US who make over $250K per year. This category may be a quicker path to the elusive millionaire club but if this group lives in a slightly bigger house, drives nicer cars and stays in a more upscale hotel on vacation it will still be a very long road.
However, if you are in this class of wager earner, you are classified as an evil millionaire targeted by the proposed tax code and the whipped up masses led to believe it is unfair they too don’t have a million dollars. According to the tone of the rhetoric of the left, it’s not “fair” some people $250K. Tax em because, “it’s the right thing to do”. I know I’m becoming overly sensitive because there is something about the way Obama pronounces the word “do” that makes me want to leap off a cliff. What really galls me is the proclamation that the answer to our problems is higher taxation while I read that our government accidentally sent out $600 MILLION in payments to deceased federal employees. The empty promises from both sides of the aisle that promise to weed out wasteful spending and fraud while hundreds of billions of dollars go unaccounted for every day are no longer amusing.
The other comment that pierced my ears was made Sunday by David Plouffe who is senior advisor to President Obama. He said the way to get the economy going was to ask the millionaires to pay their fair share and cut taxes for the middle class. What? I thought the goal was to cut the deficit? If the argument is for raising revenue in order to cut the deficit, shouldn’t they at least propose to leave the middle class tax rates where they are and increase taxes on the rich? It seems to me the objective is to not cut the deficit and create jobs but rather to pursue the ideology of spreading out the money because “it’s the right thing to do”. Says who?
Why penalize those who worked hard, sacrificed, took risks and aspired to a good education in order to reward those who prefer to live a subsidized life? Before you imagine burning me on a stake for not having a heart, I am not opposed to government assistance. I do prefer personal responsibility of benevolent and charitable assistance and our country has an unmatched record of compassion. However, when cell phones, flat screen TV’s, nice cars, modern appliances, Internet, satellite TV’s, DVD and video games become bonus entitlements of an already subsidized citizenry, it subliminally chips away at compassion. Anyone industrious enough to figure out how to obtain these items while hovering around the steadily rising poverty line is industrious enough to pay a little more to take care of himself or herself if need be or at least contribute a little more than zero in income taxes. When 47% of the wager earners in America pay nothing to the government while enjoying the benefits it provides, fairness is unattainable. It creates an oppressive state of mind and an entitlement mentality. Everyone is easily addicted to free stuff.
Back to the numbers: In the 2008 presidential election, Obama received 69,456,897 votes and McCain received 59,934,814 votes. If the Republicans are truly codifying those 3.1 million rich people to preserve their jobs, we are in serious trouble as their math skills are as bad as the skills in a DC high school. That million billion club cannot swing an election. Therefore, one must conclude that ideology and philosophy clearly is in play. Therefore, we must face reality and choose an ideology. Do you subscribe to the ideology that accomplishment must be penalized in order to subsidize the less responsible or do you subscribe to the empowerment of the American people with a dream of greatness and an environment that facilitates and rewards hard work and sacrifice and personal responsibility. We truly need an inspirational leader who can fan those flames of individual greatness. We simply cannot tolerate the divisive rhetoric that pits more than against less than. We need a leader who is strong enough to tell us the truth that we already know. We need a leader who freely admits that our government pisses away more money through fraud, waste, mismanagement and generally stupid programs than the total GDP of many developed nations and who is committed to expose it and wipe it out. I know it’s a fantasy but I bet if it happens and the country is still in a tight spot nearly everyone would be willing to chip in a little more. What would be fair is if those in power become good stewards of the money we currently work hard for and send to DC.
As far as that leader, I don’t know who it will be but I know who it ain’t.
When I listen to politicians and others debate the issue of taxes these days I mostly hear noise. My personal view is that raising taxes never has and never will spur economic growth and according to historical rate to revenue comparisons it will never increase government revenue. The only way to increase tax revenue is to grow an economy that creates jobs and creates more taxpayers. But in the midst of all the noise there are a few comments that pierce my veil of just noise and give me pause. One is the repeated rant by President Obama claiming that all the millionaires, billionaires and corporate jet owners need to “pay their fair share”. It sets a tone of penalizing accomplishment that will surely demoralize the risk takers and dream seekers. Why jets? What is next; boats, RV’s? I bet there are more Americans aspiring to buy a nice RV than a jet. Aren’t RV’s a luxury item? If the goal is to raise tax revenue, I bet an RV tax would raise more revenue than jets. But according to Obama, that would not be “fair” because even though RV ownership is viewed by some as elite it would not be a populist endeavor. Most people do not aspire to buy a jet so those who own one become the scrawny kid easy to pick on and difficult to defend.
There is an implication that republicans notoriously defend the vital interest of millionaires at the expense of everyone else. I couldn’t help but think, really? I was lucky enough to experience the American dream of building a company that required me to write a 7-figure check to the federal government. Conversely, as a serial entrepreneur I have experienced losses of equal proportion. The government was not there to bail me out yet I continue to be a serial entrepreneur. Although in the face of uncertainty of taxes and regulation my enthusiasm is tempered and I am somewhat resigned to the concept that less is more. The real bad news is that in the past I have created hundreds of jobs but I am reluctant to do it again. I wonder how many other risk takers feel the same. The fact is that the number of millionaires and billionaires fluctuate and the members of those clubs drift in and out and rarely remain for long periods of time. I began thinking about the logic of the argument so humor me as we look at a few numbers.
- There are about 308 million people living in the US.
- About 135 million people file tax returns.
- About 100 million people owe taxes on those returns.
- There are about 3.1 million millionaires in the US.
- There are about 400 billionaires in the US.
- The top 50% of taxpayers make $32,879+ and pay 97.1% of all taxes in US.
- The bottom 50% making less than $32,879 paid the remaining 2.9%.
- The top 10% earn at least $103K and pay 71.2% of all taxes.
Think about that for a minute. The top 10% of the wage bracket in the US begins at $103K in annual income. If you own a home, have two cars and a child or two, it will take you a very long time if ever to save and invest enough money to become a real millionaire. There are only about 1 million people in the US who make over $250K per year. This category may be a quicker path to the elusive millionaire club but if this group lives in a slightly bigger house, drives nicer cars and stays in a more upscale hotel on vacation it will still be a very long road.
However, if you are in this class of wager earner, you are classified as an evil millionaire targeted by the proposed tax code and the whipped up masses led to believe it is unfair they too don’t have a million dollars. According to the tone of the rhetoric of the left, it’s not “fair” some people $250K. Tax em because, “it’s the right thing to do”. I know I’m becoming overly sensitive because there is something about the way Obama pronounces the word “do” that makes me want to leap off a cliff. What really galls me is the proclamation that the answer to our problems is higher taxation while I read that our government accidentally sent out $600 MILLION in payments to deceased federal employees. The empty promises from both sides of the aisle that promise to weed out wasteful spending and fraud while hundreds of billions of dollars go unaccounted for every day are no longer amusing.
The other comment that pierced my ears was made Sunday by David Plouffe who is senior advisor to President Obama. He said the way to get the economy going was to ask the millionaires to pay their fair share and cut taxes for the middle class. What? I thought the goal was to cut the deficit? If the argument is for raising revenue in order to cut the deficit, shouldn’t they at least propose to leave the middle class tax rates where they are and increase taxes on the rich? It seems to me the objective is to not cut the deficit and create jobs but rather to pursue the ideology of spreading out the money because “it’s the right thing to do”. Says who?
Why penalize those who worked hard, sacrificed, took risks and aspired to a good education in order to reward those who prefer to live a subsidized life? Before you imagine burning me on a stake for not having a heart, I am not opposed to government assistance. I do prefer personal responsibility of benevolent and charitable assistance and our country has an unmatched record of compassion. However, when cell phones, flat screen TV’s, nice cars, modern appliances, Internet, satellite TV’s, DVD and video games become bonus entitlements of an already subsidized citizenry, it subliminally chips away at compassion. Anyone industrious enough to figure out how to obtain these items while hovering around the steadily rising poverty line is industrious enough to pay a little more to take care of himself or herself if need be or at least contribute a little more than zero in income taxes. When 47% of the wager earners in America pay nothing to the government while enjoying the benefits it provides, fairness is unattainable. It creates an oppressive state of mind and an entitlement mentality. Everyone is easily addicted to free stuff.
Back to the numbers: In the 2008 presidential election, Obama received 69,456,897 votes and McCain received 59,934,814 votes. If the Republicans are truly codifying those 3.1 million rich people to preserve their jobs, we are in serious trouble as their math skills are as bad as the skills in a DC high school. That million billion club cannot swing an election. Therefore, one must conclude that ideology and philosophy clearly is in play. Therefore, we must face reality and choose an ideology. Do you subscribe to the ideology that accomplishment must be penalized in order to subsidize the less responsible or do you subscribe to the empowerment of the American people with a dream of greatness and an environment that facilitates and rewards hard work and sacrifice and personal responsibility. We truly need an inspirational leader who can fan those flames of individual greatness. We simply cannot tolerate the divisive rhetoric that pits more than against less than. We need a leader who is strong enough to tell us the truth that we already know. We need a leader who freely admits that our government pisses away more money through fraud, waste, mismanagement and generally stupid programs than the total GDP of many developed nations and who is committed to expose it and wipe it out. I know it’s a fantasy but I bet if it happens and the country is still in a tight spot nearly everyone would be willing to chip in a little more. What would be fair is if those in power become good stewards of the money we currently work hard for and send to DC.
As far as that leader, I don’t know who it will be but I know who it ain’t.