Forum Post: Taxing the wealthy @phila9012
Posted 13 years ago on Oct. 15, 2011, 2:14 p.m. EST by Cicero
(407)
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Your reasoning is deductive but just because a conclusion is valid based on the premises doesn't make the conclusion true.
You as the press and many congressmen say taxing the rich hurts job creation. While it may be counter intuitive the opposite is true. If the wealthy have a small tax burden that means they keep more of their personal wealth. In the realm of the small business (which is the least common denominator in our economy) business income and personal income are not differentiated between.
So if they can keep more of their profits without taxation they will. However if taxes are high then they keep less of their money. One way around paying these high taxes is to reinvest in the business new capital (new employees, new equipment). So you see a low tax burden on the wealthy actual hurts investment in capital (i.e. job creation).
Besides that we have had these tax breaks for almost a decade yet have lost millions of jobs. There seems to be a disconnect in this theory and the real world.
This "job creator" philosophy I believe is the last remnant of trickle down economics. I also believe that to really believe that this is true Congress must turn a blind eye to the facts.
If you could keep your money with little taxation then why risk it it this economy. But if you would lose that money anyway to taxes then reinvest in your business at least that way their is a change you can see a return on the money.