Tuesday, December 14, 2010

Why Not Soak the Rich?

Victor Davis Hanson  "If we prefer high rates, we will see either more tax avoidance or a certain reluctance to work an extra day, buy new equipment, or hire a new employee — given that any additional income will be mostly eaten up in taxes. Those who make over $250,000 are those who would be more likely to hire new employees, and they usually can do it far more efficiently than the federal government."

Are We Too Dependent on Rich Taxpayers?. "In 2005, the richest 13.5% of California taxpayers (or those earning more than $100,000) paid 83% of all income taxes. Capital gains from the top 5% of taxpayers accounted for $100 billion out of the $111 billion in total capital gains reported.
"“Those revenues rise and fall dramatically with the stock market, resulting in California’s unstable and volatile revenue stream,” the state Controller wrote.
"Why is this a problem?
"Some might say fairness. Conservatives are frequently arguing that it’s not “fair” that the top 1% pay more taxes than the bottom 90%." Hat tip to Neal Boortz.

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