Will Taxing the Rich Even More Improve Inequality?
Will Taxing the Rich Even More Improve Inequality?
It’s been the cry of democratic lawmakers and many of the less fortunate for years: “We need to tax the wealthy even more.” “The rich have to pay their fair share of taxes, too.” The problem is the rich already pay a huge portion of the country’s tax bill, and in fact, despite those common complaints, taxing the wealthy really won’t end inequality.
Tell a Rich Person Thank You
The next time a member of the middle class comes across a wealthy person, he or she might want to say thank you, instead of clamoring for more of that person’s hard-earned money. That’s because the rich actually already do a lot for the rest of the population in America.
Rich Pay The Majority Already
First off, the wealthy pay more than the rest of the country thinks. In fact, according to the IRS, the top 1 percent of society makes 15 percent of the income. However, they pay 39 percent of all federal income taxes. Think about that; the top one percent pays more than a third of the country’s federal tax bill.
More Donations
The wealthy help the rest of the country out in another significant ways as well. Many of America’s wealthiest individuals, such as Warren Buffet and Mark Zuckerberg have made huge donations to charitable causes and continue to do so.
More Investments
Another way the wealthy make a difference is that they invest their income in other companies. That money is also put into financial institutions, which can in turn makes loans to the middle class to buy homes or start a new business.
Enough Is Enough
The fact is, the rich pay their fair share in taxes and they actually help the rest of the world in many other significant ways. There is no need to create even more taxes simply to take more of the wealthy class’s heard-earned money.
We hope you found this interview “Will Taxing the Rich Even More Improve Inequality?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm with clients all over the world.
GROCO.com is a proud sponsor of The American Dreams Show.
Hello? Is This Really the IRS, or Just a Scam?
No one enjoys getting a call from the IRS, but getting a call from someone who claims to be from the IRS, but who is really just a scammer, is even worse. However, according to the country’s top tax agency, that is exactly the kind of sophisticated and elaborate scam that has been going on…
United States and Singapore Buddy Up on Tax Evasion
For those who are still not convinced that the United States is serious about tracking down tax dodgers who are trying to hide money in offshore accounts, here’s one more piece of evidence that might change your mind. In a deal announced last week, the country of Singapore says it has come to terms with…
IRS Overpaid by $6 Billion in Child Tax Credits in 2013
Although no one will probably ever shed a tear to hear that the IRS paid taxpayers too much money, this latest report does nothing to breed confidence in how things are run in the nation’s tax collecting agency. According to reports, the IRS paid about $6 billion in child tax credits last year to people…
Small Business Stock Gain Exclusion Receives 2014 Extension
It’s not like the government to bring everyone some well-needed Christmas cheer, but the new tax bill that lawmakers were finally able to pass brought some good news for many investors before the year ends. It’s unfortunate that it took the entire year to get it done, but at least the tax provisions that did…