Why? Many reasons. Chief among them is:
The wealthy definitely don't deserve hand-outs.
In general, the rich use a much greater percentage of the public infrastructure (and everything else) in order to make their profits. So it's only fair that they should pay a greater percentage of their income to pay for that infrastructure usage.
Roads Cost Money
When an individual drives to the store, and then back home, that driving accounts for their percentage of that road's use.
A store owner (who has 1,000+ customers a day using that same road to get to the store owner's place of business) only pays for one trip. Their own. Equal percentages of income cannot address the actual road usage. Unadjusted, the store owner's taxes do not pay a fair share for road usage based on the benefits which the store owner receives from the overall usage of that road by others who drive to his store.
Road Usage: It's a Two-Way Street.
The same applies to police protection.
Most thieves target places of wealth, not poverty.
And so forth.
Flat Tax BS
A flat tax across the board would not be fair because it would not address the inequities which inherently exist in obtaining and maintaining wealth.
The store owner example above explains clearly why toll booths would not fairly assign cost of road usage to those who benefit from using the roads.
Taxes need to be progressively adjusted based on the totality of income in order to even come close to making the tax system fair and just.
Spending Stimulates Economies
Another important point is that wealthy people don't spend all of their money. Most of it is "invested".
Middle class and poor people generally DO spend most of their earnings. And not only do they spend the bulk of their weekly income, it's generally ALL spent *in* America. Which, of course, is good for the American economy.
Wealthy people tend to invest their disposable capital overseas (even if they don't realize that's where it's going). Investment companies and bankers make much greater returns in countries that don't respect human rights like America does. So they "employ" slave labor. Just do the math.
This is why taxcuts for the top 2% are such a bad idea when it comes to the best interests of the American economy, and its people.
How to Tie Taxcuts to Job Creation
How do you design a job-creating taxcuts incentive plan? Well, step one is that you DO NOT give taxcuts away to the job-killers.
The following is a simple proposal to encourage the wealthiest Americans to boost the *American* economy instead of destroying it by exporting jobs overseas via investments.
When Wealthy Tax Cuts Are Good
You're in the top 2% of income earners in the USA and you want a tax cut? Fine.
Create American jobs. Jobs that will make both you and your fellow citizens much better off. As well as the rest of the world. Because you won't be encouraging slave labor.
Here's The Deal
For every new job you create, you can qualify to deduct up to a full $100,000 off of your taxable income. The job need not be held by the same person for the entire job term, but the position must be filled by someone during entire term.
Based on a few factors, you are entitled to deduct a portion of the $100,000. Below is a sketch of how it could be configured (the numbers are just place-markers -- strategic tweaking is needed for maximal effect on the economical realities).
The percentages on the right represent the portion of the $100,000 per job created that a tax payer would be able to deduct from their taxable income based on the qualification on the left.
1. Annual Salary
$5,000 = 3%
$7,500 = 5%
$10,000 = 10%
$50,000 = 25%
$100,000 = 50%
2. Projected Term of Employment
03 months = 1%
06 months = 3%
12 months = 5%
24 months = 10%
36 months = 15%
48 months = 20%
60 months = 25%
3. Type of Job
Type A = 25%
Type B = 15%
Type C = 10%
Type D = 5%
Type E = 3%
Type F = 1%
The more jobs you create, the more money you can deduct. The higher the annual salary of a job, the greater portion of the full $100,000 you can deduct per job created. You're also entitled to even more tax cuts for creating jobs of greater quality (type).
If you create more job tax cut credits than you owe in taxes for a particular year, you can either:
1. Opt to apply the total dollar amount as future tax credits.
2. Accept a capital investment for a percentage of your earned tax credit.
3. Get an interest free loan on the total amount.
Hopefully, you'll use that loan to create even more jobs and economic activity in America.
