Thursday, October 06, 2011

The Millionaire Tax...Why They Just Don't Get It

Struggling to deliver the big jobs package proposed by President Barack Obama, Senate Democrats are using the issue to force Republican senators to vote on tax increases for millionaires, picking up on a White House theme that the nation's wealthiest Americans aren't paying their fair share. (Source ABC News)

They just dont get it. They must not have taken Economics 101 in school.

What is considered "fair share"? The key word in this paragraph is "paying". They are paying. They are contributing.

These politicians fail to recognize that these millionaires are responsible for a lot of jobs AND creating new jobs. They create jobs that actually are productive for their business versus the artificial, temporary, basically welfare with a title, jobs created from the Stimulus packages.

This logic goes against every rule in Economics 101. I would love to see the stat that would show how many jobs would be lost versus how much tax revenue created. The government has proven it cant run a business profitably and any jobs it creates aren't productive...just human subsidies.

That is why a civil rights attorney should never have been chosen to run the biggest corporation in the world.

 Chances are these millionaires took risks to build their business. How do you reward them, by increasing their taxes? Keep in mind these millionaires are also generating tax revenue. They are actually giving (generating tax revenue), not taking. The problem in this country is we have too many takers, not enough givers. The government rewards and takes care of the takers, and penalizes the givers.

Here's a HUGE wakeup call. There is a MAJOR TREND starting to develop. The number of givers is starting to decrease big time and the number of takers is starting to increase big time. Even the WSJ recognizes it.

I'll explain it to those politicians that don't get it. The number of people that will generate tax revenue is starting to decline rapidly. The number of people that will require assistance from the government is increasing rapidly.

There are 2 major problems that need to be resolved before this economy gets traction:

1. there needs to be a job creating program put in place.

a. I have an easy solution for that I call AmeriCAN (capitalism America needs)

2. the housing market problem needs to be resolved.

a. determine the REAL number of homes that are for sale (foreclosures and the ones bank own but not publicly stated). Banks cant determine assessed value if they dont know what the true supply is.

b. force banks to take risks by lending. There is no incentive for banks to lend when they can get a guaranteed 2-3% on their money. Have you noticed the ONLY construction in this country are new banks? Ironic that they are also holding a ton of unwanted property.

With interest rates so low, homeowners USUALLY refinance their mortgage at lower rate which gives them a few hundred/thousand extra a month for living or paying off credit card. This is the cycle that kickstarts every new economy cycle. Banks and their unwillingness to lend is stalling this recovery. They are unwilling to lend because they are getting a guarantee on their money from the US Govt and they have no way of determining a homes value.

Mr. Obama here is how America creates new jobs (job creation solution).

America is loaded with creative, hard working people. Give them free fishing poles.

The tool that turned $10,000 into $2,800,000 in 2 years.


Anonymous said...

"Keep in mind these millionaires are also generating tax revenue."

isnt that the whole point of what you're bashing?

Scott P. Shaffer said...

The point of the story is that millionaires are the ones providing tax revenue and creating jobs. Don't increase their taxes.

Increase the number of people that pay taxes, don't increase taxes on the only productive part of the society.

Create more givers, dont penalize them.

The way to increase revenue is by making the tax revenue populous larger, in other words, get more people employed. NOT by increasing taxes on the only section of the population that is generating revenue.