But people making 10X that 42 K amt arent always just flat out wealthy. These are the people that star new businesses and create jobs. If you increase taxes, penalize people more on investments what are the incentives to start new businesses?
If you're making $400K a year, that's wealthy in my book. You should be able to retire and care for your dependents after 10 years on the job. I'd say $3.5M is enough to retire on these days? I'm assuming one could live (comfortably) on $50K a year, save the rest. Then with interest/dividends, that's $350K at an average return of 10% a year. (OK, minus taxes... that's ~$280K??, I don't know what the capital gains rate is on that much gain...)
50% of private employees work for small businesses and 60%-80% of new job growth is b/c of them
http://www.sba.gov/advo/stats/sbfaq.pdf. From my experience (my father, my neighbor) are not started by people making $400K a year.
check out the bush quote on this page that you referred me to, which was exactly what I was getting at.
How are more jobs created if people are losing more and more of their paycheck to the government?
I think we might actually be on the same page here.
(maybe not :) - (but it is all menat to be a friendly discussion or debate - I do feel like Im learning a lot more about politics by discussing this with others)
Again if there was a flat tax, there would be no group having to shoulder more of a burden than another.
I just disagree that just because people have made wise investments and have saved and prepared their own money that they are obligated by the government to part with it.
There are absolutely personal responsibilities to be charitible, to volunteer, to support worthy causes, I just feel like taxing isnt the best way to do this.
Small businesses start with cash from family and friends, but there's also banks and investment firms in there too. That's why one of the roles of the SBA is to help people get financing.
We're not talking about someone who's making $70K or even $150K a year. Generally, if you're making that kind of money, it's through hard work, perserverance, etc. (Well, you probably need to be lucky enough to be born into a famiy that values education). Again I don't think it's about income, it's about wealth. Should a family like the Heinz's, who may (I'm guessing here...) have very little income but huge wealth, be able to shirk the tax man while working stiffs have no recourse but to pay-up?