Taxing Success

Why not raise taxes on the rich, they can afford it, after all. This is a sentiment I typically hear when I discuss making the payment of income tax equal for all on a percentage basis. Why should someone making $320,000 per year (Person R) pay 35% income tax while someone making $35,000 (Person N) pays 16%? The $320K/year person pays $112000 while the $35K/year person pays $5494.

Is simply saying Person R "can afford it" enough justification to make that person pay? If so, why? You don't think Person R would do something with their money that might otherwise be more useful to society than giving it to the government (by which I mean the Federal Government)? Person R wants to make more money, so he/she will invest it in some way which will in turn create jobs and/or opportunity for others, whether Person R starts a business, invests in stocks or commodities, or purchases real estate. Person R wants to grow the pie. Admittedly, it is his/her own desire for more that's fueling the investment, but, without such investment society suffers.

What does the government do with tax income? It engages in some useful activities, but ffor the most part is consumed by beauracracy and giving money to programs that few agree with, and are not condoned by the Constitution as an activity in which the government should be invovled.

Is it Person R's moral obligation to pay more to society? Arguably, Person R uses very few resources (police, entitlements, social services, medical) that he/she doesn't pay for out of his/her own pocket. Person R pays for everything with regards to investing activities, and indeed pays tax multiple times on the same money.

To say Person R is somehow more obligated than Person N to society is simply a statement reflecting the politics of envy and social relativism. In this regard, the income tax is the codification of morality. You make more therefore you must give more.

All of this amounts to a drag on success. Most of today's "rich" are self made in one form or another, whether it's through getting an education and advancing at work, building a business, or creating technology. Once these people become successful, instead of rewarding them, they're told "we're happy you've done something well, now give us more, you owe it to us."

Huh? The "rich" pay 95% of all income taxes, and don't use most of the governmental programs they pay for via taxes. Someday we'll learn. Europe is starting to learn, but we're not nearly as deep in the hole as they are. Someday, Atlas will shrug, and we'll all wonder where the drive to create, innovate and shine went, just like the Europeans.