Why We Should (NOT) Tax the Wealthy More

Monday, October 27th, 2008

What if your company where you worked were bought out by another company and in that acquisition you were offered $100,000.00 as a bonus for the acquisition?  Would you take it?  In the state of Colorado where I live taxes on that money, including federal taxes on that money would put you at having 40% taken in taxes (without itemized deductions and what not).  That would be like actually getting 60,000.00.  Would you still take it?  Oops, I forgot something.  The Federal Government actually takes a bonus 20% on top of that for them because the money is a lump sum.  That would leave you with $40,000.00 out of an original $100,000.00.  Would you still take it?

Sure, you’d still want the money, but I think that the recent hullabaloo that I’ve heard recently about taxing the wealthy (AKA ‘rich’) to distribute the wealth is not as forthright as it sounds.  There are two (or more) areas that concern me about this.  The first is that recent numbers show that just under 40% of the entire nation’s federal income tax is generated by the top 1% of America’s earners.  That’s right, the ration is that askew [see: http://www.taxfoundation.org/taxdata/show/23440.html].   The second is that in my own household if I am strapped for cash: I have to either go into deeper debt (which I’m digging out of) or I have to cut spending.  I can only go so far deep into debt, so we cut spending.  If the Federal government wants to get their budget together, they too, should have to cut spending and not raise billions or trillions of dollars in debt.

Here’s the kicker: if you add on sales tax which there is the potential of the $40,000.00 being spent ‘in state’ you could see up to 10% MORE tax being taken at the register depending where you go shopping.  That means that out of the original $100,000.00 the person who was rewarded by their company has now had 70% taken in the form of taxes.  That would make me want to throw another tea party.

I know that as a country we’re all trying to see equitable charity, the furtherance of our families and the general well being of the population, but if we can’t afford wellfare programs because we don’t have enough money, if we can’t afford to pay for a massive military (which is a hot topic and I won’t attempt to address it in this post), if we can’t afford to watch our airports with a crack squad of TSA agents (who fail to find my pocket knife every time I forget I have it with me) then we need to cut things.  This hurts.  This could impact jobs, this could impact the entire nation.

Here’s an opportunity for Americans to be innovative again.  This nation had a time of prosperity that was unbelievable.  We had brilliant thinkers making brilliant products brilliantly.  But we’ve passed that and now we’re all hoping to be lucky enough to make it with the next e-business, dot com super-story, or sue someone else for their money.  But what if brilliant people worked together to make new brilliant products that we then sold to the rest of the world just like the ‘good old days’ only it was now?

Well, if that were to happen we’d tax the snot out of those brilliant people and punish them for their productivity.  I think I’d prefer to just shuffle along and make moderate wages and not be taxed up to 70%.  This isn’t Bill Gates’ problem.  This isn’t Warren Buffet’s problem.  This is your problem.  It’s my problem.  It’s our problem.  Lets vote next month (not too many days away, now) with a conscience.  Lets send a message to our representatives that we’re not going to take it any more.  We, as a people, have a right to the fruits of our labor and at present we’re not looking out for one another, and it makes me sad.  The good news is that there are ways out of where we’re at.  It will take determination, and it might hurt a bit, but if we can make a united effort, we might just be the United People of the United States.

What is a Million Dollars Really Worth?

Wednesday, March 19th, 2008

I had someone hit this site looking for, “Would you sleep with me for a million dollars?”  I can’t believe that people would consider this, but then again, its people we’re talking about: the anonymous mass of Internet users who don’t have to be identified and so asking such a question doesn’t come with the stigma that asking it of your friends and classmates might.  The question that begs is this: What is a million dollars worth?

In our modern relativistic culture there is little value placed on sexuality within marriage, and the sanctity of marriage (sanctity being the setting aside as special) .  Sex is not worth a million dollars, that cheapens it, it is invaluable.  A million dollars is a lot of money, but it isn’t enough money to offset emotional scars, the fact that you’d be engaging in prostitution (see: Eliot Spitzer).

Various people have posed nude in magazines for money, taken jobs that they didn’t agree with because of a high paying salary, and of course there’s the age old televangelist schtick as well.  Money is not important if it is gained in an ill gotten fashion.  Having standards, focusing on the long term impact (how many women did something pornographic and then had children and were mortified that their children would find out?  What about parents finding out?).

A million dollars won’t buy you happiness, love, or a long term financial state (it is just as easily lost on frivolous activities and spending).  What’s a million dollars worth to you?  Is it worth your dignity?

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