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Should the Rich Pay More Tax

Should the Rich Pay More TaxAs of this update, in Dec 2012, the US has still not dealt with the Fiscal Cliff. Can you believe that the Republicans do not want to raise taxes on people making less than a million dollars a year! This is ridiculous.  Should the rich pay more tax? President Obama wants to limit this to $250,000 income a year which is still a huge amount of money. These people just do not live in the real world as far as we are concerned. Read on to see what Warren Buffet thinks about this problem. His comments are a few months old, but he still believes it.

Just read an article were Warren Buffet is quoted to say to congress, “Don’t coddle Me”. He is apparently saying that the rich should pay their share of taxes to the US government.  The recent discussion in the US about the deficit limits and getting approval to increase the limit has sparked a great deal of discussion and action. The markets reacted negatively to Standard and Poors downgrade of the US government rating, the politicians in the us could not pass this approval without serious disagreement which took the decision down to the wire. Apparently the Tea Party people wanted cuts in the budget, while protecting the rich from increased taxes.

Should the Rich Pay More Tax – Canada Too

Well, it is not just a US government problem. The same thing occurs in Canada as well as other countries were the rich pay a disproportionate low share of the overall taxes. The Governments and politicians are made up of very rich people and why would they vote themselves to pay more tax. It is just not going to happen in any country. Todate, no politician has had the guts to do anything about it either since they get a lot of their funding to win elections from other very rich people. Why would you alienate those supporters by increasing taxes?

We think that the rich should pay more, like Warren Buffet does, however the reality is that the middle class is going to continue paying the greatest amount of taxes, while  the very rich escape paying their share of taxes.

As long as the middle class is kept relatively happy, the status quo will continue as it is .  As long as they can purchase their toys, new cars, boats, homes etc and live a comfortable life, there will be no revolt of the masses. Unfortunately for the poor, they are not large enough as a group and do not have a spokesperson that can lead their cause.

Tax Revolt

The US came dangerously close to open revolt of the middle class during the 2008/ 2009 recession. If the banks had failed and more people lost their jobs, there would have been chaos not because of the economy, but because a huge segment of the middle class would have crashed into poverty. Anyone with nothing to lose will take matters into their own hands and revolt against the government and any other group that they feel is holding them back. Greece and Italy are very close to this since their cuts are impacting the middle class in those countries to a great extent.

Sure the rich should pay more tax and help out the governments. But the Tea party people also have it right too. Governments all over the world need to wake up and reduce their spending. Although Canada has weathered the storm well, they also need to wake up and follow some of the austerity measures as well to keep us all in the kind of life style we know and love. There are too many people on the gravy train right now both in government as well as contractors working for governments.  We need the status quo to maintain stability and avoid revolts which will utterly destroy our way of life. This is what we think about should the rich pay more tax.

In our opinion here are a list of the steps that need to happen:

  • Increase taxes on the rich
  • Cut costs everywhere in the government
  • Decrease employment numbers in the government by at least 10%
  • Reduce aid to foreign countries
  • Balance the budget the way individuals need to
  • Make it a law that all budgets need to be balanced

That”s our opinion on this incredibly important issue. What is yours. Keep it constructive!

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