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Thursday, February 11, 2010

Here is How Taxing the Rich Works

The idea here is that the rich have more money than they know what to do with so why not raise taxes on them so the government will have more money to spend on programs to help people who struggling to survive? You need to know how the rich live and what they do with their money so you can see how this works. Believe us when we tell you that the rich do not hide much of their money in a wall safe in their master bedroom. They have three choices of what to do with their money. They can spend it, put in a bank and let it collect interest or they can invest it and hope to get a good return on their investment.

If they spend it that means they have had to pay for the goods or services they bought and they have to pay sales taxes on what they bought. Whichever company supplied the good or service along with their employees then gets the money. All that does is make whoever runs that company richer after he pays his employees. The rich could put their money in a bank so the bank would have money to loan to people but then banks only loan to people who have excellent credit and that sure does not include us who are struggling to survive. Even if they will lend to us, their interest rate is so high we can never pay the bank off so who needs this total ripoff anyway?

The third thing they can do is invest their money and get even richer by demanding control over whomever they are are willing to provide their money. Even though some of that money will be used to build new buildings and machines and another company has to supply the materials and labor to build the buildings and make the machines, only a small part of that money will go to pay their employees. The people running the construction companies and manufacturing companies will keep most of the money and get even richer. What little trickles down to us from those companies in the form of wages does not begin to make up for the huge profits that goes to the company executives and to the rich people who buy stock in those companies. Yes, we do own stock in companies through our 401(k) accounts but these bastards always manipulate the stock market so we never get ahead anyway.

Now you can see how taxing the rich works because it takes their money away from them before they can use it for any of those things that only the rich can do. Now the money goes to the government so they can use it to give to people who are struggling and do not have a job or have a lousy job that does not pay enough for them to live on decently. Of course, this does make us somewhat dependent on the government for our survival but it is free money. Naturally since the government is dispensing this money it will have to set some rules about who gets this money and what we do with it. But since we decide who runs the government this is not a problem. We still get this free money and so putting up with some bureaucrats telling us what to do is no big deal.

Naturally the folks running the government expect you to vote for them so they can keep finding more ways to tax rich people so they will have more money to give us. Of course, a fair amount of this money will have to go to government employees so they can make more laws and set rules and regulations to make sure we spend the money they have given us properly. Now you know enough about politicians to now that another bunch of that tax money will go to grease the palms of their buddies who have made substantial contributions to their re-election campaign. But hey, that is the way the system works so you can get the money from the rich who do not deserve it and do not need it. So maybe only half of that money ever finds it into the pockets of those who are not rich but something is better than nothing.

Now you can see the advantages of taxing the rich. They do not need all that money to spend, put in banks to loan folks and invest in businesses to make still more money. Of course, if they do not do that with their money there will not be enough money available to borrow from banks or to lend to new businesses to hire more employees. This is also not that big a deal because the government can just print more money to give to companies so they will do that. That way the young people who just got out of school and need a job can find one. Your kids who now need a job or your friend who got laid off can find work eventually as soon as the government dispenses that newly printed money and those new companies get those buildings built and the machines bought. Now the poor people who did get the money can go down to Wal-Mart and spend the money to buy some things that they could not afford before. Of course, those goods were made in China so only the employees at the Wal-Mart and the fat cats who run it got paid.

That is not a problem since your kids and the laid off friend can always go down and get a job at Wal-Mart until the government figures out how to get all that new money spent. Of course, Wal-Mart jobs do not pay very well but we can fix that by unionizing Wal-Mart and make it pay better wages. That will raise the prices at Wal-Mart but we can take care of that by raising the taxes on the rich some more. So now you see what a good deal it is to just make the rich give most of their money to the government so we can get our half of it. There is a small downside to this though in that who would want to get rich if the government is going to take away most of the money they make over $250,000 a year? Unfortunately there will not be much encouragement for people to work hard and get rich so the government can take most of their money away from them to give to us. We can solve that easily by raising taxes higher on those that are already rich.

Think of how much better it will be to not have to work so hard for a living or even to work at all and let the rich take care of the rest of us. That way we do not have to worry about unemployment because we can just go on welfare. Of course, with fewer people working, fewer people will be paying taxes so we will have to change our definition of who is rich to those making more than $100,000 a year so there will be more rich people to tax. Eventually we will have to get down to those people making more than $40,000 before we take most of their money away from them above that amount in taxes. Oops, people making only $40,000 a year are not rich; they are the middle class. Something has gone wrong with this idea.

It sounds like the rich are getting poorer but we are not getting richer. Instead our taxes are going up so anything we have gained is going to people who are poorer than we are. How are we better off with this plan in the long run? Gee, maybe it is better to let the rich people keep most of their money so there will be money to lend and create decent paying jobs with good wages. Damn, maybe socking it to the rich does not work so well after all. How about that? Then why are President Obama and the Democrats in Congress proposing that we do this? Damned if we know; you will have to ask them to explain how this works out so well. We must be missing something on how us poor folks can get ahead under this scheme of theirs.