The fiscal cliff is approaching and quickly. President Obama has said he won’t accept any deal that won’t raise taxes on the 1%. Well, Mr. President, with the most respect for you and the office I would strongly and undoubtedly disagree. Raising taxes is not the answer. If anything it is the exact opposite way we, as a nation, should go. The top 1% pays over 40% of the federal government tax revenues the the top 10% pays over 60% of the tax revenues in the federal government.
Now, let’s say someone is making $60,000 a year. They pay under only 1-5 thousand and that is 5% of their income if the paid $3,000 in taxes. Someone who makes $2,000,000 pays 40% in tax revenues, and they will pay $800,000. Now, someone who makes money off capital gains pays about a 15% tax rate. So let’s say they made $10,000,000 in capital gains. They pay $1,500,000 in taxes.
Now that leaves them with $8,500,000, but that isn’t including other taxes. Also almost all top 1% give huge sums of money to charity, hospitals, grants, foundations, and some of them start their own foundations like Bill Gates. He and his wife started the Bill and Melinda Foundation. Also, if we tax the 1% in a way that France does, the 1% will flee the nation and go to a third world country, or a nation where they will be be able to keep their money.