All of this talk about fairness is making me sick. I’ll keep it simple.
If a person earns a million dollar salary, then pays 35% income tax, that is $350,000, leaving $650,000, then all of that gets invested. This investment is a good one and ends up paying off a dividend of $1,000,000, where this person pays another %15 income tax, or, $150,000, added together, that is $500,000 income tax on $2,000,000 of income, or 25% total tax. How would you like to pay a half million bucks in tax? What was this investment?
These are all over simplified numbers, but, it is possible, think about it, if that investment of $650,000 had been in Microsoft, or Google at just the right time, it could have happened, right?
Back to the investment, what happened with the money? It obviously grew, and what happens when a business grows? It hires people! Each of which also pays income tax, and if the business grew that much it hired a lot of employees, right?
Now, what if that investment flopped? The invested money would be gone, correct? Yes, a portion could be written off, but it would not have paid as much. Anyway, this investor took the chance and was rewarded with a dividend, the economy was rewarded with jobs, and uncle Sam received a lot of money he did nothing to earn. So, if this investor had to take this risk and not get a return, why would they do it? They wouldn’t. Would you?
Back to the issue of fairness. If a person invests enough money, money they already paid income tax on, to get a return of any amount, and help to create jobs, each of which means more income tax to uncle Sam, why should the investor be punished? Is that fair? If a business hires people and makes a profit while providing jobs, then gets hit by more government rules, regulations and MANDATORY health care costs, all of which eat up this profit, is that fair? After being over regulated and taxed to the point of damage to the business, and the business has to lay off employees, is that fair? What about the price increases, in an attempt cover these costs, for products we all need? Is that fair?
Let me put it all together, the investor can’t make money so they don’t invest, the business doesn’t grow because they have no investors, so they do not hire anyone. Without growth, the business goes under because they cannot compete. Fat bloated freeloader, uncle Sam gets less income tax because there is no income. Sad story, that is where our country is today, investors are afraid. Is that fair?
So what is the purpose of all the penalties of extra taxes etc? To pay for people who want or “need” a government handout from uncle Sam, or “free” healthcare, 99 weeks of un-earned unemployment checks and so on Those that invest, work, and do what is right, paying for those that do not, is that fair?
Obama and his minions idea of a “fair” utopia cannot happen their way. Let investors make money, the more the better, because the more they make the more they invest, then that means more jobs, more little businesses to support the big businesses, but strap everybody down with the next regulations, taxes, healthcare etc, then we all lose, except for those getting the “freebies”, is that fair?
In the upcoming elections this year, think about this, then vote out the people trying to destroy our free market, and our Republic!
Thanks for reading!OpinionHead