Thread: Hey!! Who's pulling the Bandwagon????

Originally Posted by gugi

One other point about progressive taxation that I didn't see mentioned.
If you already have say $100 000 you will be taxed higher percentage on each additional dollar you get than if you have only $10 000.
However I think most people would agree that (in absence of taxes) it's also easier to make extra dollars if you already have $100 000 than if you have $10 000.

Yeah, but there's another issue here. First, wealthy people aren't hit by the taxes as they were intended to be. High Wage earners are. There is a huge difference. If I have $1 million, I can make long term capital gain investments and pay a significantly lower amount of tax on that those gains than someone who earns a $1 million salary. The wealthiest among us are not stupid, and they pay people a lot of money to avoid the taxes. So, what happens is they start lowering the threshold at which someone is declared "rich" and start coming at those in the upper-middle class. They are the ones being taxed disproportionately the hardest as a whole (except for the rare occasions that there are really high wage earners).

If anyone thinks making $100K, even $200K, makes you rich (not talking to you Ivan), you couldn't be more wrong.