Sorry, Pal, You're Rich

I don't think taxing the people who have worked to get ahead is a solution because them getting ahead didn't cause the lower income Americans to have their problems. If my income increases by say another 75k it will not result in an increase in problems for lower income Americans. It would most likely improve the situation because I would spend that money on goods and serives that helps the economy. Conversely if my income went down 75k it wouldn't improve the situation of the poor. You can say we all need to share the burden but I share mine and about 3 other peoples burden. If you REALLY want to solve the problem of the poor; address the cause. Improve the skills of the poor and their circumstances will improve. Excessively tax the people who do well and you don't do anything other than address the symptoms and not the cause and are doomed to stay on that treadmill until you address the cause.

A proposal to devise an income tax system that accounts for geographically divergent costs of living ...?

Ever hear of the Fair Tax ?

Which is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including:
A progressive national retail sales tax.
A prebate to ensure no American pays federal taxes on spending up to the poverty level.
Dollar-for-dollar federal revenue neutrality.
Repeal of the 16th Amendment through companion legislation.

www.fairtax.org

A proposal to devise an income tax system that accounts for geographically divergent costs of living ...?

Ever hear of the Fair Tax ?

Which is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including:
A progressive national retail sales tax.
A prebate to ensure no American pays federal taxes on spending up to the poverty level.
Dollar-for-dollar federal revenue neutrality.
Repeal of the 16th Amendment through companion legislation.

www.fairtax.org

While I pay income tax on my unemployment insurance two thirds of America's corporations pay no income tax what so ever. I have no problem with anybody making as much as they can possibly earn. I do ask for an even playing field, and that we do not have. America has stacked the cards towards the rich and it has stretched the middle class to the breaking point. The rich in America need the middle class to fund their selfish lifestyles. They're feeding off their own base of wealth. When the middle class collapses it will take the rich with them. Which is exactly what is happening with the collapse of the sub prime mortgage market. The sub prime market is just the beginning. Next is the credit card market.

The problem isn't in defining what is "rich" and "not rich". The problem is in believing that above some "magic number" the government is entitled to more of the money you work hard to earn. (And in case anyone wonders, I make a lot less than $100k).

Here's the reality. If I moved my family from Southern CT to Kansas or Iowa, my household income drops like a rock. The reason is, is that its all relative. The last time I made $30k a year, I was living outside NYC, I was 26, single, and guess what? I ate peanut butter and jelly sandwiches for breakfast, lunch, and dinner. I am not elitist, I am a realist.

To me, rich is defined as financial independence. That is, you do not need a job to maintain your standard of living. A $250,000 per year salary does not necessarily qualify, unless you've been earning that much for at least 10 years and managed to save half your income. It is not the salary that makes you rich but your net worth and your liquidity level, or your ability to turn your net worth into cash.

To: If you have to ask...you cannot afford it!!!
Obviously, you are one of those individuals who didn't benefit much from having an income far above your abilities. Otherwise, your elite education would have taught you that "municiple" is actually spelt "municipal". Is it your elite school training or your brain that's at fault?

this reporteris not telling you the truth as usal, most peole that own small buiness may show on paper that much in income but its far from that in reality. the tax burden barack will put on them will badly hurt the economy. what a lame brain.

Your article is right on. The complaints of just starting out after graduate school with all of its debt and paying a ridiculous price for a house are all excuses to justify a tax break. I was in the same type position - not the $250k, but scrimping to pay for a house, pay for family activities (school requirements, soccer, etc.) in a place I loved. Rather than stay in the cycle of pay increase and more going out, I decided to move to a less expensive environment - from San Jose, CA to Austin, TX. I went from a 1400 sq ft house to a 3000 sq ft house and paid less on a monthly basis. The salary was comparable and the public schools are better. It was the best thing for me and my family. Peace of mind, great community, and no more 60 - 80 hour work weeks. Also, 15 min drive to work instead of 1.5 hours.

We're all missing the point. It's not what you make, but who is paying their fair share and who is not,. It's earned income vs. unearned income. I know a multimillionaire who received a tax rebate from the government because his millions are unearned.

It's also about who records their income and who doesn't. Here is a story of a tale of two incomes. Two familes make $500,000 each. (it's a true story) One works for a major corporation, the other owns his own cash landscaping business. One pays taxes on $500,000, the other declares, maybe $150,000 per year. The family making $500,000 is not complaining and is very grateful for their fortune -- they do the right thing and pay the government well over six figures in taxes, However, they do not live an extravagent life (they live in NJ) and feel very slighted by how others get away with it.

We can't solve the deficit or the tax problem in this country simply by saying you make x, you're rich and you should pay more. It's more complex than that.

We could pay off the deficit in the country if the ultra rich and small cash business owners paid their fair share.

That's my gripe as a top 1% earner in this country.

That is perfect, penalize the people that are in debt because of school loans to get to the position to make $250k. Then take their money and give it to others that CAN do it themselves but choose not to. Lower income get PEL grants and more help than anyone else. So I need to give up More of my already nailed tax bill for others? What is the point in bettering yourself? Or should we all live like droans of the government and just live off of them?