It doesn't really apply to people who make big money already. If you make 750k u are in the top 1% already. Its for people who make an average salary of say 45k a year and are looking to go up. Any money you make above that amount has a very steep tax rate. Why work harder when the government will just take 40% of any extra money you make when you can be lazy and only get taxed 10%?
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Originally Posted by kane
I have heard this before yet have never seen proof of it. There are more wealthy people in this country today than ever before. Those who are rich are richer than they have ever been.
While the average worker in this country has seen their wages go up at about 1% per year, those in the top 5% have seen their net worth increase by over 300%.
I'm not saying it is right or fair to tax the rich. they worked for their money and shouldn't be forced to shoulder all of the tax burden, but I just don't buy the story of higher taxes de-motivating people to make money.
Look at it like this. Say you have a guy making 750K per year. He sees that the tax rate is going to go up another 10% so he is going to have pay an additional 75K per year in taxes. It is understandable that he is not happy about this. Do you really think he is just going to stop working so that he can get down do around 150K per year in income to avoid those taxes?
At 750K per year with that increase he would pay 45% to feds leaving him 412K
At 150K per year it would put him in the 28% bracket leaving him 108K
so he is going to take a 304K per year pay cut to avoid paying extra taxes? I'm not buying it. Would you take that kind of cut?
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