Take from rich and give to the poor. That’s the Robin Hood mentality, and that is the mentality of the President. Let me explain why that doesn’t work, ever.
To tax anything by definition is to take away something and then give it over to the government. Rich people are rich because they own a lot of shi!t. Asset’s, in other words. Therefor, taxing the rich is taking away their stuff. Who do you know that keeps a million dollars in their bank account? Wealthy people’s money goes into things; business’s, factories, buildings, cars, houses, bonds, stocks, you know, asset’s! It just does! Contrary to popular belief, 89% of the nation’s wealthy are self-made. The rich own a good portion, actually a great portion, of the non-residential assets in America. These are counted as ‘wealth’, but they are really being used to build the economy, create GDP, and provide jobs. Now the thing is, the greedy federal government does not want these assets, they want cold hard cash up there on the hill. So by raising taxes on the rich, the government is having them liquify their stuff and their buildings and their asset’s. Meaning what really happens is that money that could have gone to create more non-residential assets for the wealthy tax payer (business, buildings, factories, oil wells, etc…) has to be redirected to buy the taxpayer’s already existing assets and the taxpayer in turn has to hand that money over the the government. Government has more money, but a wealthy taxpayer now has less asset’s to use to create jobs and business and so on and so forth. For the past half century or so the relationship between non-residential assets and GDP has been basically the same, and pretty steady. About 1 dollar of non-residential assets creates about 50 cents of gross domestic product. BEA data says that a regular job is usually supported by about 200 thousand dollar’s in non-residential assets. So in other word’s, wealthy people’s non-residential asset’s are essential to creating and sustaining jobs. So, unavoidably, if you tax away 200 thousand dollar’s from a rich person, the GDP will drop by about 100 thousand dollars in a year (because of the 1 to .50 ratio and because wealthy people own most of the non-residential asset’s in the nation), federal money intake goes down about 20 thousand dollars per year because of the loss of income tax collection, and employment will go down by exactly one job. (One job is supported by 200 thousand dollars.) 200 thousand is undeniably more than 20 thousand dollars so you might be thinking the federal government is winning. It is not winning, it is actually losing, a lot. Why? Because to get the 200 grand, the fed had to give up the 20 thousand dollar’s in income tax I was talking about and the current value of 20 thousand is just around 600 THOUSAND DOLLARS. That’s how bad things are! Just to put that into a little bit simpler of an explanation, when the government taxes and takes away 200 grand from a wealthy person, it sinks itself by about 400 thousand dollars. And on top of that, someone is out a job.
I mean, you can’t argue with that.