Taxing the rich results in an employed middle class
There's a misconception about the whole "tax the rich" idea as a way of increasing revenues. People think, "Instead of paying $25,000,000 on a salary of $100,000,000, CEOS will pay $90,000,000 on a salary of $100,000,000 - that's $65,000,000 more into the Treasury per CEO!"
But this would not happen. Instead, CEOs would simply not be paid $100 million if $90 million went to the government. Instead, the CEOs would be paid $1 million, and the remaining $99 million would be rolled back into the corporation to hire people, who would then earn that $99 million and pay 30% or $30 million to the government.
But you say, "That's a $35million loss! $30million vs $65million." No it's not: all those workers would not be getting unemployment checks, section 8 subsidies, etc etc. Plus, those employed workers will now go out to stores with their salaries and increase demand on other American-made products.
So increasing taxes on the rich is a way of keeping money inside corporations so they can hire workers and pay them and create demand for even MORE domestic production.
But this would not happen. Instead, CEOs would simply not be paid $100 million if $90 million went to the government. Instead, the CEOs would be paid $1 million, and the remaining $99 million would be rolled back into the corporation to hire people, who would then earn that $99 million and pay 30% or $30 million to the government.
But you say, "That's a $35million loss! $30million vs $65million." No it's not: all those workers would not be getting unemployment checks, section 8 subsidies, etc etc. Plus, those employed workers will now go out to stores with their salaries and increase demand on other American-made products.
So increasing taxes on the rich is a way of keeping money inside corporations so they can hire workers and pay them and create demand for even MORE domestic production.

<< Home