"When I hear certain politicians banter about raising taxes on all those rich people (the ones they define as earning more than $250K a year) I sorta cringe. I'm in the remodeling business, much of the work I get is from those people. I wonder how many of them are going to be willing to spend $20-80K remodeling their bathrooms or kitchens when they have to send a bigger chunk of money back to Washington. I think that money could better be spent by those people here, in their communities, paying people like me to work for them. The people that work for me and the subcontractors and suppliers I support certainly would agree. They keep portraying these people as villains or greedy selfish people hording their precious bucks. I see these people as supporters of local businesses, theirs and mine. I see them as the turbo charger on our economic engine.
The real question is: Who could stimulate the economy better? Should we let the people that earned that money spend and invest it their communities (by paying people like me)? or should we tax them out of those dollars and send the bucks to Washington and let a bunch of bureaucrats spend it? Who the hell do think will do a better job?
Another thought: When I get payed to do a remodeling job, I pay my employees, subcontractors and suppliers. I pay taxes on the profits I earn, my employees pay taxes on the money they earn, as do the subcontractors and suppliers I help support. They intern pay their employees or spend it in local businesses, pay rent, buy food where others earn wages from that money. Those bucks keep churning through the economy being spent over and over again, where people pay taxes on them over and over. THAT is how you stimulate the economy and THAT is how you create jobs. The end result is a growing economy, more people working, and growing revenues into the US Treasury. The more people we have working, the more people we have paying taxes. The only way we are going to solve our economic mess is to grow the economy. Considering that 70% of jobs, good jobs, are created by small business (those nasty rich people that make over $250K a year)....this president, this congress should be falling all over themselves to help these people grow their businesses so that they can hire more people. Not regulating them to death, raising their taxes,(which they could use to expand their businesses and create jobs), and not portraying them as greedy tight wads.
On Warren Buffet: What a damn hypocrite! He owns billions of dollars of assets, which just keep growing, pays himself a measly 100K a year, and has the audacity to say that those rich people like him (those that make 250K or more a year), WHICH HE IS NOT ONE OF THEM, should pay more taxes. Go ahead Warren, pay more taxes...no ones stopping you. Of course, you'd have to pay yourself more in the first place. This president and many like him like to use Warren as an example...lets get real...he's the exception. The guy is worth billions, the securities he owns pay NO dividends, his fortune just keeps growing and he pays himself next to nothing. He's made his fortune by buying pieces of companies of people that KNOW how to build a business, and he does it well. And I think he'd be the first to admit that he's not an entrepreneur in the true sense of the word. The people that built this country's economy, the people that created the wealth that is America, started with an idea and a few bucks, and made it happen on a shoestring. David Packard, Bill Gates, and the Steve Jobs of this world had good ideas and an unyielding desire to succeed. They are the creators of wealth. Warren is the guy that once they succeed, tags along for the ride.
Keep in mind: when a "rich" guy makes alot of money, anything he does with it helps the economy. How?
-If he puts it in the bank then I or you can borrow it to buy a car, remodel the house, or send my kid to college.
-If he buys bonds with it(lends it), then governments, local and national can build roads and bridges, or corporations can use it to expend their businesses. Both result in higher employment.
-If he buys equities(stocks), then companies will have the money to expand and create jobs.
-If he spends it...then I or you can earn his dollars by suppling goods or services he desires. More jobs. And if he spends it on a yacht or a jet , I really don't think the people that build them would mind.
-The worse thing he could do is bury it in his yard or stuff it in a mattress...and I don't think many millionares do that."