Diary

Should Obama Raise Taxes on the Rich?

Over the past few years, many of us have felt the pressures of a painful recession that has taken no prisoners. Many lower and middle class families are especially feeling the pinch in their lifestyles a little more because they do not have as much as the rich do. Because these rich people are not feeling the pinch as much as those in the lower and middle class are, it is easy to become jealous and even easier to demonize their success. But why do we demonize the rich? Because they have more than we do? We allow our emotions to get in the way of reality, rather than letting, well, reality and the consequences of our actions govern our decisions. Many people do not hesitate to demonize those more successful that we are, but allow me to lay out a very simple proposal. Why, instead of preaching about the evil rich man, don’t we strive to become that successful one? It is a fact that more approximately 80% of today’s millionaires are first generation millionaires. What does that tell us? Obviously if we work hard and strive to do our best, we can be successful. These 80% came from lower and middle-class backgrounds, but through hard work, dedication, determination, and long hours became the successful entrepreneurs that America’s foundation is on.

Why do we envy the rich? So many times today we hear people debasing the man who has the money. Our elected officials tell us it is our patriotic duty for the rich to pay more taxes. But let me ask each individual something. With all due respect, who has ever got a job from a poor person? Poor people do not create jobs, and giving money to poor people does not create wealth.  Rather, it works like a cycle. When you cut taxes for everyone, it works in the best interests of the entire population. Many times we hear about the “poor people”, the “lower class”. For the most part these people are grouped into this class based on their income. What the statisticians also don’t tell you are the dirty little details. Yes, some people make fewer than 25,000 dollars per year, which would qualify them as “poor.” But many of these poor are college students, single persons, and others to whom 25,000 dollars is plenty of money to get by. We will always have a certain percentage of the “lower class” that fits these groups of people, and soon enough, those people develop more skills, move up the monetary ladder and become successful middle class citizens. If they really work hard, they may even become one of those “evil rich people”.

 Why does a tax cut across the board make sense? The lower and middle classes get more spending or investing money, and the rich grow their businesses. Let me pose a rhetorical question: what happens when a rich person gets a tax break for his business? Naturally, a businessman will want to expand his business to grow his business as well has his personal wealth.  And when a businessman grows his business, it creates jobs. And when a rich man has more personal wealth, he spends it and in turn puts more money back into the economic cycle. This is true, immediate stimulus.  When the government spends money, it is not investing it, but rather simply “redistributing the wealth.” For every dollar that the government spends, it has to come from borrowing, taxation, or simply printing money. Each of these has an adverse effect. When the government borrows it is usually not borrowing money for the sake of investment, but rather simply because it needs or wants to spend it. The private sector, however, is more focused on investment and growing their money. For this simple reason, our focus should be on restoring the private sector, not expanding the power and influence of government.