Wednesday, November 14, 2012

Taxing the Rich

Dear Elected Officials,

Do you know any rich person (other than President Obama) who has ever said, "I make a lot of money so I don't mind paying more." Yeah, me either. You know why you never hear them say that? It is because rich people like being rich and they don't like giving away the money they have earned and worked for.

While studies have been conducted trying to determine if rich people will leave places that impose a higher tax burden on them because they are rich, the evidence suggests that it does happen but not at a terribly alarming rate.  Some will put up with the tax increase because the variables that make them want to stay are worth more to them than the increase or because they can find a way to get out of paying it.

I know a person who has decided to leave California as soon as they can make the proper arrangements.  His tax bill just went up $80,000/year with the new increases.  This has caused him to put into motion moving to a state with better tax advantages for him.  I'm sure this is happening with others as well.  Last year this guy was content to stay and pay the tax rates California was asking.  They got his money.  Next year, California may get his money.  In 2 years they won't get that $80,000 or anything else either.

Fact is, rich people are rich because they are smart or they hire smart rich people to shelter their money.  You know why Mitt has money in the Cayman Islands?  Because he likes his money!  I don't see a problem with people who have made their money try and protect it.  I don't blame them.

Unions are the same way.  These pension plans that are tailored to take care of them after they retire are important to them.  If you try and take that away or diminish the return or amount of money they will get when they retire will cause them to lose their minds.  Truth be told, NO ONE LIKES PEOPLE TOUCHING THIER MONEY.  It is especially true when it is a proven entity that wastes countless billions on worthless investments and ideas.

There are a lot of wealthy members of Congress.  Many of them stand behind this idea of taxing the rich because the benefit of being in Congress allows them to make deals that will benefit them and their money.  Better roads and healthcare are bi-products of their service.  Those things keep you quiet.  They benefit from knowing heads of business and industry, they make the connections that allow them to build a bigger nest egg.  As if the lifetime salary and benefits they receive from serving in Congress isn't enough to live off, they want more.

When it is all said and done, the tax code needs to be scrapped and a new one should be worked out.  Currently it is layers on layers on layers of gibberish.  Trying to decode it is something even Robert Langdon wouldn't try to do.

What needs to happen is to eliminate deductions altogether. No more loopholes, no more tax advantages for this, that or the other. Lower everyone's rate, and simplify it.  Then budget appropriately and live within your means.

I could do it if you let me. Join the middle, the new silent majority, The Coalition.  Make sense, be reasonable, be fair.

Caleb Reeve for President 2016 - I Am The People.


Ryan Lucia said...

Well said Mr. Reeve. I too know many people that have bailed on CA because of the tax burden opting to "live" in Nevada instead. They can also get the guns they want too.

Tax burden must be shared to be fair. People complaining that Mitt Romney is the bad guy because he lives off of his investments at this point and only deals with capital gains is ridiculous. All these people calling for the end of capital gains are thinking short term. When they get to retirement age, they are going to want to pay capital gains taxes on their non-tax deferred investments. I sure as heck do. I purposely invest in non-tax deferred accounts because I don't want to take on the higher taxes of personal income that 401ks, Roth IRAs and deferred IRAs will yield.

I'm not rich and I sure as heck want to keep as much of my money as I can, but I also realize that I get quite a bit from the services of government and these need to paid for. One of our problems as a nation is that people are starting to believe that they shouldn't have to pay for the services that they take advantage of because someone else with a higher income should support it.

Flat taxation is the key. We all share in the burden at an equal share of our income. Everyone.

Shaylin said...

It's Cayman islands...

But aside from that, very good thoughts on taxation. I agree wholeheartedly.

Shaylin said...

It's Cayman islands...

But aside from that, very good thoughts on taxation. I agree wholeheartedly.