OK, I'll bite.
EX - you posted this earlier
- At what level are we considering "rich"?
100,000 or 1,000,000 or 10,000,000
- Is that AGI or Gross Income?
- Will these increases have a sunset? Or would you accept that the additional tax increase for a given bracket be directed to only the principal on the national debt.
When you cut taxes from the less wealthy, they spend it. When you cut from rich, they transfer it to other rich (buy homes, put it in stocks, whatever).
This is exactlyexactlyexactly why folks that are at the lower end of the spectrum economically will remain there. I'm not trying to go all Warren Buffet on you, but when people refuse to save, they will never get ahead.
Oh, they'll make more money, but the minute they get a raise its a new car/house/boat/carpet/etc. All the while using credit to bridge the inevitible gap that occurs should a hiccup happen to their check book. They'll get a COLA raise but will still overspend and pay a heck of a lot more than 3-5% for that borrowed money. I'm sorry, but even if you pile 5% more on the rich and 5% less on the "poor", the people I mentioned above still won't be able to make ends meet and save for a rainy day.
Moose, a lot of that is very true, people should save, people should not spend 10% more than their raise (and yes I am one of those idiots). But the problem is, free will. The government cannot tell people to save. They encourage it with IRAs and 401(k)s, but they cannot force it (well, okay, SS is forcing people to save, kind of). Personally, I spend like a mad man, but I also have a total of 19% of my check going to 401(k) between the company match and my personal contribution.
But, what the government can do is manipulate tax rates. All I say is to institue the 39.6% tax bracket back from the 35%. This is for people with a taxable income over $390,000 (or somewhere in that area). Keep in mind, that is taxable income, not total income, not AGI. Most people with that high of a taxable income have closer to a gross income over $500,000 and over. And Obama's simple fix to SS is what I have been saying Kerry should have said. The tax cuts out at $102,000. How about reinstate it at $250,000 a year? Now, we have a solvent program again.