Yesterday Congress voted on the Paying a Fair Share Act of 2012. Just as many have predicted, it was shot down. The President and the Democratic Party are trying to get this passed. Basically saying that people earning more than $1 million are not paying enough taxes or at a lesser tax rate than lower-income taxpayers. How can this be? Well, there is a crap-ton of loopholes for one, also there is this thing called Long Term Capital Gains, which are taxed at a lower rate. The reason for this is to encourage people to make long-term investments, therefore encouraging economic growth and stability.
Why am I against this “Law”? Plain and simple, this law penalizes those that are successful. Some people have the belief that all millionaires are just trust-fund babies, ones that were just given money and never had a hard day in their life. That statement is completely false. Are there some that had wealth handed to them? Yup. Do the majority of millionaires fall into this category? The answer would be no. Most millionaires have worked very hard to get where they are. They were normal people (not that they aren’t normal now), the average Joe on the street working a 9-5 like most people. The only difference between them and the average person, is that after their 9-5 was done, they worked a couple more hours, or attended some college courses, giving up their free time, sacrificing one thing for another. They didn’t expect anything to be handed to them, they went out and took it (not literally) by putting themselves in a situation to succeed. This is one of the great things about the United States, everybody does have a chance to succeed. Yah sometimes it is harder for some people, but the chance is always there, the choices just need to be made.
A solution that I think would work: A flat tax. I think everybody should pay taxes. This goes for the lowest earning individuals and also for rich peeps like Mr. Warren Buffett. Should Mr. Buffett pay a higher tax rate because he earns more than his secretary? I don’t think so. I think everybody should pay the exact same rate. Hypothetically, starting at an annual income of say $10k, everybody, and I mean everybody should pay an income tax, lets just say 15%. That means that a person making $10k would pay $1500 in taxes for the year, and a person making $100k would pay $15k in taxes for the year. This system, in my opinion, is fair for everybody. The same rate is applied to all, nothing else. No deductions for energy-efficient windows, no deductions for having a child, nothing. This includes businesses as well. We all know GE didn’t pay a single penny in taxes last year, which is ridiculous. Get rid of all the loopholes, everyone lives here, so all should pay taxes. Get rid of the IRS, because there should be no need for any refunds. If you make $1k this week, $150 gets taken out in taxes, if you make $2k the next week, $300 gets taken out. Simple math.
I am not even close to earning enough money to be effected by the Buffett Rule even if it was passed. My whole point of this post is equality. Everybody wants equality for the most part, taxing the rich because they are successful is not equality, its class warfare. It is discrimination against the rich. I am definitely not rich, and I do not expect any help from the rich either (although if they wanted to throw me a couple G’s I wouldn’t be against that). I made a choice to do what I do, to earn what I earn, and pay the bills that I agreed to pay. I am responsible for myself and the decisions I made, nobody else is and should be. The government sucks at money management as it is, taxing the rich to get more money isn’t going to change the governments spending habits. How about making, and actually following, a frickin budget.