Taxing the Rich
Thou Shalt Not Kill Thy Neighbor’s Cow
Does President Obama Know How to Count?
Brainstorming for a title for my article on the merits of “taxing the rich,” I stumbled across an article entitled “Killing Your Neighbor’s Cow: The Defining Sin or Our Times.” The relevancy of this concept to my article was so striking that I borrowed it. I am grateful to Charles Colson of Catholic Exchange for his perceptive article, which is well worth reading. (We’ll get to the cow later. Or scroll down.)
Outlining the Problem
- The US has a two-pronged financial problem; an annual deficit, and an accumulated debt.
- Obviously we must find solutions to the problem.
- Continued borrowing is destabilizing our international status and our economy.
- Our national debt is 34 times higher than China’s.
- We must stop spending or find a new source of income.
- Political leaders like Wisconsin’s Governor Walker try to reduce spending and are vilified and threatened with recall.
- Political leaders like President Obama try to find new sources of tax income with popular slogans like “tax the rich,” a concept which, not surprisingly, seems to have much public appeal. The concept of dipping into Scrooge McDuck’s seemingly limitless wealth is, on the surface, quite attractive.
Is “Tax the Rich” a Realistic Solution to the Problem?
Kevin D. Williamson analyzed the possibilities regarding taxing the rich in the United States in his National Review Online Article
Define the goal:
National Debt: 15 trillion ($15,000,000,000,000)
Yearly Deficit: 1.3 trillion ($1,300,000,000,000)
Define the rich:
Definition A: households earning $250,000 ($250K)
Definition B: households earning $1,000,000 ($1 million)
The “Rich” as Those Who Earn $250K Annually
There are 2.2 million households in the US earning more than $250K. To raise enough money to wipe out the annual deficit of 1.3 trillion, each of these households would have to pay $600K per year ( more than twice their entire income). continue reading…