Posted by: coastcontact | August 20, 2012

Special Income Tax Rates for the Very Wealthy

Everyone should be taxed at the same rate. There should be no deductions or allowances for any thing!

Steve Rattner, President Barack Obama’s former car czar, appeared on Fareed Zakaria’s GPS a few week ago. (Steven Rattner is Chairman of Willett Advisors LLC, the investment arm for New York Mayor Michael R. Bloomberg’s personal and philanthropic assets.) Mr. Rattner said that one of the reasons Mitt Romney won’t release his income tax returns is his legal but highly unusual asset protection.

Romney has a $100 million IRA and off shore accounts that avoid US income tax. Rattner pointed out that many rich people pay income tax at the 35% rate while there is a group that pay at the much lower rates. Rattner said he didn’t think the American people would be too happy with this situation. I certainly am not happy!

There is always going to be a very rich part of this society. I don’t know the reason but it was confirmed by Vilfredo Pareto (15 July 1848 – 19 August 1923). He made several important contributions to economics, particularly in the study of income distribution and in the analysis of individuals’ choices. The Pareto principle was named after him and built on observations of his such as that 80% of the land in Italy was owned by 20% of the population. Today in the USA 85% of America’s wealth is owned by 20% of the population (quite close to Pareto’s 80-20 theory).

What I do not accept is the idea that the wealthiest among us pay 15% in income taxes.

This is nothing about Jealously.  This is about fairness.

There is no question that rich people spend more money on stuff. The question is: Should rich people whose earnings are the result of investments be taxed on their income at 15% (or less if Paul Ryan has his way) than people whose earnings are based upon a salary?

Personally I believe everyone should pay income taxes at the same graduated rate no matter what the source of the income. No one should be given any allowances or deductions for ANYTHING. You want a wife, more kids – go for it – just don’t expect any help from the government.

Advertisements

Responses

  1. What is needed is to go back to the tax policys and regulations prior to 1980. The facts are that those with greater wealth and larger corporations actually used more of the infrastructure and the employees that were educated also helped those to make more money, so then they should pay more. We need a graduated federal tax rate and whats sad is that those in the lower tax brackets, may pay no fed tax but in fact will pay about 40% tax for payroll, ss and medicare, and sales tax and property tax and so on. If you look at before 1980 and reaganomics and before clintons lowering of capitol gains and carried interest to 15%, and also before the failed welfare reforms that only pushed people out with no care if they were able to find jobs, or if they even had the education to get a job.
    We need the ‘top tier’ to pay a surcharge, world wide, until the global mess that they and they alone caused. sorry just my thoughts I am old enough to remember what it was like before and i also remember nixon and romney so is like him, and his trust me and with tricky dicky it was i am no crook, both are liars.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: