1/27/2005

Why should the rich get tax breaks?

In this election year you heard one side blaming the other side about giving tax breaks to the rich and not caring about the middle class. Why would you give tax breaks to the rich? First the top 50 percent of wage earners are paying 96.03 percent of all taxes. The top five percent of wage earners pay 53.25 percent of all taxes. If the lower 50 percent of wage earners aren't paying taxes, how can you give them tax breaks? Maybe this was an election ploy by one side to get votes. Another reason is that the top 50 percent are your entrepreneurs and businessmen who create wealth to the economy when they get some extra cash. That is the biggest reason why we give tax breaks to the rich. The rich do something productive when extra money comes their way, they don't blow it.
http://www.rushlimbaugh.com/home/menu/top_50__of_wage_earners_pay_96_09__of_income_taxes.guest.html

8 comments:

stockton said...

With numbers like that, it is hard to dispute the fact that the rich should get tax breaks. I mean really, if the top 50 percentof people are paying 96% of all taxes and five percent of our people pay 53.25%, why shouldn't we create some type of breaks for them on their taxes? Granted, you will always have some people that take advantage of the system when you do that, but that happens with all people-lower, middle, and upper class. I also agree with the fact that the rich do more productive things with their money than do the not so rich-I guess that's why they are where they are, because they applied and used their money wisely. So, to conclude, I believe we should give tax breaks to the rich.

Ann said...

I also agree that the rich should be getting the tax breaks. The rich are the people that are stimulating the economy. They are the people creating the jobs and make new innovations. From the numbers in the post it is clear that they are getting taxed more than any other group. They should not have to pay such high taxes, when they are the people who will do the most good with the money.

scott said...

As a future tax accountant, I am in complete favor of making my job easier by not taxing dividends, but I'm not such a big believer in the trickle-down theory. Anywhere there is a little running water, someone always puts up a damb.

Drake said...

Tax breaks for the rich are a great idea. But how good are they for our economy? When we talk about giving the rich a tax break do we really understand how much money we are giving back to them. The best thing for me is that I don't make enough money nor do I plan to in the future to be taxed on exorbitant amounts of money.

Diane said...

We business students, soon to be professionals, are viewed as an interesting breed by other colleges on campus. In what other department would all the students be rooting for the rich. Of course I agree that heavily taxing the rich will decrease the amount they invest back into the economy. The Bush administration has been thinking about revamping the tax code and instituting a flat tax ensuring that everyone would be taxed. Of course I don't think this would work and am not worried about it being passed. Steven Lansburg wrote in his book Fair Play about the political rhetoric of "the rich having...more than they deserve,...the poor having too little. It's only fair".
We say it's ok for the government to steal from the rich and give to the poor. Of course we all believe in sharing but not stealing.

Luise said...

This relates to the topic from “Fair Play” in teaching our children that it is wrong to take another child’s toy just because he has more. Landsburg writes that he has never heard a parent tell their child that “if one kid has more toys than the others, then it is okay for those others to form a “government” and vote to take those toys away.” This is what our government has done with us, in making us pay a portion of our earnings as taxes. As Salty stated, it is the rich that pay the most taxes. When most of us graduate from College within five years, we will be part of the higher tax bracket that pays a majority of the taxes, or at least that’s what our professors tell us, in this country and won’t we want the tax breaks then.

C-Dizzle said...

This kind of ties in with my perious blog, "Gov’t Grants Business Immortality". The government takes that 96.03% of the top 50% of society and blindly hands it over to dying industries and poor investors. It's time the government reward the good companies for being good and dump the "not so good" companies for the good of society in the long-run!

Dr. Tufte said...

-1 on Scott's, Diane's, and Meg's comments for a spelling errors, and on Luise's for grammatical errors (waived)

The facts here are essentially correct.

And yes, it does seem odd for some to complain that tax cuts primarily benefit the rich - I think this plays to misinformation and ignorance of how the world works. Of course, as business majors most of you get that, but other majors would probably disagree.

Here's a provocative suggestion: what if we extended Meg's suggestion a bit, and only taxed companies that lost money? Hmmm. Think that would be good for the economy?