You Want To Tax The Rich

So, let’s tax the rich. After all they can afford it! The rich don’t earn their money like us “working people” do. They steal it from everyone don’t they? At least that the Liberal Left would have us believe.

I know several so called “rich” people and not one of them stole their money. They did not inherit the money like Paris Hilton or Ted Kennedy did. Each of them worked hard for what they have by starting companies that employ “working people” and supplying products and services other “working people” want to buy.

The Liberal Left would have you believe that these people are the exception and not the rule. They would have you believe that the rich have won life’s lottery when in fact most of the rich took a chance and invested time and money to start a business. They did not know if they would succeed of fail but they took a chance. Now the Liberal Left wants to punish them for their success.

The Liberal Left makes the argument that the rich can afford to pay more taxes and that it is time for them to be more patriotic. The Liberal Left say that “working families” are paying to much tax not. That I agree with. However, if you take a closer look at just who is paying higher taxes, you will find out that even though the rich may be paying a higher tax, it is still coming out of the pockets of “working families”. In fact the taxing the rich is only a smoke and mirror trick of the Liberal Left. How can this be?

The rich the Liberal Left is talking about make $250,000 or more. This is the current floor but what will it be tomorrow when the “tax the rich policy” doe not work? We heard that 95% of small business wouldn’t pay any additional tax. That only 5% of the small business would pay additional taxes. This may be a fact but much of the detail was left out. The 95% of the small business that would not pay additional taxes are companies that employ 1 to 4 employees and that they make up 10% of the workforce employed by small businesses. The 5% of business that would see a tax increase employ 90% of the workforce. Chances are that means that your boss will see a tax hike.

The rich are greedy is what we hear so let’s go with that premise. Since they are greedy, then you have to believe that they won’t due with less money. How will they have the same amount of money and pay higher taxes? Here are a few thoughts.

To begin with, the rich (your boss) can keep your next raise for themselves. Why should they give it to you? There is no union (another sore subject) to force them to give it to you. You could threaten to leave. That may not be a good idea because if you do leave, your boss will have all your salary and can hire someone else at a lower cost to replace you and you will have no income.

The company (your boss) could layoff or dismiss employees. Paying higher taxes is a good time for your boss to look at low or non-productive employees and eliminate them. We have to remember that labor cost are a large part of the product or service that your company produces and sells. Reducing the workforce saves money for the rich (your boss), but that has an issue that relates to you. In order to keep the same production levels the remaining workforce (you) have to work harder and you would have to do that for the same money that you currently are earning. If you don’t keep up then you could join the un-employed.

Another way the rich (your boss) could keep their same income is to raise the sales price of the product or service the company sells. This has its problems as well. Prices are usually at a level that the market can bear. Raising them most likely will result in decreased sales (remember gas prices in 2008). Decreased sales means that fewer products need to be produced and that in turn leads to a decreased workforce (that means you may not be needed). Your boss may not want to decrease the workforce so he/she may reduce the hours that you work which means less money for you.

A more drastic measure the rich (your boss) can take is to relocate the company out of the country. What? Take my job over seas? That’s correct, move “your job” out of the country. The Liberal Left have convinced you that it is your job, which is in fact not true. It is not your job; it is the company’s job. You did not create the job you are doing, the company you work for did. That makes it their job and you are simply a tool performing that job. Sounds harsh but it is a reality. If the company goes out of business then you have no job. If it were your job then only you could eliminate “your job.” You went looking for that job. The company in reality did not go looking for you. They had job and looked for someone to fill that position and in return for your labor they pay you money. Someone else could do the work you do. It is not exclusively a job only you could do. If it were then you should start a business performing that job.

Raising taxes on “the rich” because “they can afford it” or “it is time for them to be more patriotic” may sound good, but in reality you will be the one paying that tax in one way or another. Redistributing the wealth was a good campaign slogan, but there is a truth to money. It may trickle down slowly, but it gets sucked upwards very quickly. Studies on how money is distributed shows that if you take money from the rich, it very quickly goes back to them. Why does this happen? Because they keep doing the things that made them rich and we keep doing the things that put us were we are.

One last thought. You get more of the behavior you reward and less of the behavior you punish. Punish the rich for being successful (which is how they became rich) and you will get fewer rich. Fewer rich means fewer jobs and that affects all of us. When is the last time you heard of anyone getting a job from a poor person? So go ahead tax the rich!