A poll saying 70% in favor of a tax hike on people who earn 200K or more per year is meaningless. First, I would think that 95% of respondents would be in favor because less than 5% of tax returns have earned income more than 200K. Anyone is in favor of tax increase on someone else. If you don’t think that the tax increase is going to affect you, why wouldn’t you be in favor of it? The result of this poll indicates to me that there are at least 25% of the respondents believing that the tax increase will affect them negatively even though they don’t have to pay it.
Warren Buffet says he is in favor of higher taxes on millionaires and billionaires. Why? Because it doesn’t affect him. Warren Buffet could borrow 1 million per year at 3% (interest only) for his personal and family expenses, do that for the next 10 years and then die. How much tax did he pay? None. Because he didn’t earn any income and he didn’t realize any capital gains. When he dies his estate pays off his debts and there is no cap gains tax after death (in this case 10 million is less than 1/10 of 1 percent of his estate) and pays the estate taxes, but he would have paid those anyway and what does he care about that, he is dead.
Rich people like this, can avoid paying income and capital gains taxes for long, long periods of time. Politicians need to think that just because they raise the tax rates on these people that they are actually going to get any more money. This is not where the real money is and they all know it, the real money has always been with the middle class, the income earners who are standing targets. This is one reason why conservatives are against tax increases because inevitably the average joe is the one stuck with the bill. If BHO got the tax increase he wants on the 200K earners and above, the take is only 70B a year or 6B a month. That will pay the deficit for less than 2 days per month.