Tax the Rich?

Antony — November 15, 2012

As the US approaches the so-called “fiscal cliff”, there are increasing calls to raise taxes on “the rich” to help increase government revenue. Many of the wealthy themselves, such as Warren Buffett, are joining this call, seemingly putting the greater good before their self interest. But if we analyze the situation more closely, we see that their motives may not be so pure.

Are they proposing that the government seize the accumulated fortunes (or a portion thereof) of people like Buffett? No, the increased taxes will be on high incomes. In other words, people who are already wealthy will not necessarily pay more tax, but those who seek to become wealthy will. People such as young ambitious entrepreneurs, or growing family businesses.

The effect on society? Further economic empoverishment by discouraging wealth creation and innovation. The effect on the likes of Buffett? Another handy crutch, courtesy of his government buddies, to hobble any up-and-coming competitors, and entrench him at the top of the wealth heap.

This is just another example of the rich and powerful elites using political influence to secure their positions of wealth, all while the unwitting masses cheer them on.

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