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Originally Posted by CaramonLS
To be fair... if you're increasing taxes to people who make over 250k per year, that isn't really the middle class.
Saying the rich can simply "re-invest" their money is also a bit of a misnomer. I can tell you that most people making 1+ million a year aren't stuck paying 0% tax, because they've given to charity, invested, etc. There are limits to those types of things. I do agree that there are a lot of ways to avoid some taxation, but not all.
The key to an effective tax strategy is pretty simple if you want to stimulate the economy - tax the people who aren't spending to their means and lower taxes for the ones that are (yes I do realize it is a lot more complex than that).
Cedric Millionare's money doesn't do a lot for the economy if it sits in a trust for 70 years.
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Its pretty well established that the richest people in the US, i.e. the Forbes 400 list pays very little tax. So they have some way to get around the tax laws. This needs to be changed. I'm not a big believer in 'taxes' as I believe the economy should be powered by the private side, with private money, not the money the government collects and then promptly wastes a percentage of it because it is the government. If there will be taxes, they should be fair across the board.
Exactly why the flat tax would work perfectly.
As for someone making $1 million/year, most people will invest that money. Problem is right now people aren't buying, people aren't investing because the US economy isn't looking too great. 2 years ago it was a problem worldwide, but now with a lot of other countries recovering, and the US still sitting in a hole, one has to wonder what exactly will happen. Even the speculation of things not going well, which is abundant right now is enough to discourage people to take that $50,000 sitting in a bank account collecting minimal interest and invest it somewhere else.
Nevermind the people with millions, or the companies with billions.