Quote:Original post by way2lazy2care
why do people assume that rich people just spend money on useless things. I won't say that some of them don't, but if I made that kind of money I'd be much more likely to either invest it or start my own companies, which would benefit a lot of people.
If I were to buy a yacht, it would probably be well after I was making enough for it to be a very very small percentage of my income unless I decided I wanted to live on the yacht instead of at a house.
My investing would be impacted severely more by a tax increase than my spending on stupid things.
Also, there are definitely people that are orders of magnitude harder working than others. |
Investment doesn't necessarily benefit people. For example, over the last decade wealthy people put hgue amounts of money into financial products that were 100% speculative. It benefited the investors early on, but did nothing for anyone else. And in the later phases of those investments, they hurt a lot of people, and badly. And there is a trend in which the wealthy increase their speculative investing as a greater percentage of wealth conentrates into their hands.
Plus, there's no particular reason that someone would invest in the US rather than another country, which may not do anything for Americans at all. It's probably not a bad financial decision on the part of the investor, but that's not something that lower classes should have to finance by subsidizing lower taxes on the affluent.
And while there are certainly people who work much harder than others, the rich is not made up entirely of such people, and the wealth disparity between rich and poor is hardly proportional to labor.
Quote:Original post by Quasimojo Nor should they! Seriously, why should people be penalized for succeeding?? I just don't get the mindset that since someone else has more money than I, they should have to give me some of it. |
It's not much of a penalty to pay a slightly higher marginal rate on income and still have more income left over than the vast majority of people.
And since the wealthy have had everything to do with depressing real wages of the middle and lower classes while their own income has skyrocketed, why shouldn't they bear at least a
slightly higher cost? Particularly on things that we all, as a nation, use?
America has not run fiscally sound policy over the last decade (at least), and we have reached the point where spending cuts alone are not going to be enough to correct the problem. Taxes will have to go up on everyone eventually to deal with the debt and deficits, but right now no one but the wealthy is in a position to contribute much. Why can't the rich pay more now, when only they can, and everyone else start chipping in when the economy has a bit more? I feel that this is particularly reasonable given that during America's fiscal irresponsibility income disparity increased dramatically in favor of the wealthy, who despite their significantly greater political influence (compared with the rest of the population) didn't bother to push for better fiscal policy. The wealthy own the budget in a way that no one else does, and so their share of responsibility for it is at least somewhat greater.
And it's not wealth distribution in the sense that you imply, where cash comes out of the pockets of millionaires and is handed directly to the less well-off. Take health insurance as an example. It has become more expensive over time. Workers accept health benefits from employers in lieu of additional pay. While health insurance costs have increased, real wages have decreased,
and the health benefits offered by employers have become more spare. So employees get lower quality health benefits than previously without a corresponding increase in pay. And even if they want to buck their employer's offered health benefits, they would still have less moneyto put towards any health plan, all of which have become more expensive anyhow.