If Some Democrats say we need to raise taxes because the rich allegedly don't pay them because of loopholes.?

Question

How would raising the taxes help? I head many of them say we need to raise the tax because the rich get around them. If we raise them, it will only hurt the honest tax payers. The rich will just keep getting around them right?

Answer 1

Our government needs to show fiscal responsibility.  We already have to borrow approximately $500 billion a year to pay for our expenditures.  When we cut taxes we have to borrow the money we don't collect through taxes.  Does that make any sense?  We can't raise taxes on those that can't afford to pay them.  But we do need to raise taxes and cut spending.  We can't keep borrowing as much as we have been.  

Answer 2

the past ten years Bush has been cutting taxes for the mega rich and not the average worker and it has really messed up our economy.  Our deficit has never been in this condition in our nations history.  I wonder if he wakes up in the morning and says to himself how can i put the screws to my fellow Americans?  No previous President has done the things he has done.  Like have NYC get attacked.  Then he starts a war based on lies.  Why this hypocrite has not been impeached is beyond me.  Oh and his vice President actually shot someone while duck hunting in 2006 and nothing was done about it.  Sure it was an accident but if I accidently shot someone i am sure i would be off to jail somewhere.  Are Republicans above the law?  Oh some time ago Mccain had an affair with a newpaper reportet much like Senator Edwards Yet nothing happens!  Where Senator Edwards is literally crucified politically and Mccain has it dusted under the carpet somewhere.  ARE REPUBLICANS ABOVE THE LAW???

Answer 3

Yes.

Answer 4

If you earn over $200,000 dollars a year, this concerns you. If you believe however that a man on $40,000 dollars struggling to get get healthcare and own his own home should pay up state and federal tax, at the same rate a guy on $200,000 does. Then I think you need to get real about your tax system, because one day soon its your own kids who'll be in it and you better hope they earn more than $40,000 a year.    

Answer 5

Yep.  It makes no sense.  Obama makes no sense for that matter.  

Answer 6

There are two ways to effectively raise the Federal income tax paid: raise the income tax rate (%) or decrease allowable deductions which increases the amount of "income" you pay the tax rate on.

If the % rate is increased, it will increase revenue, but it will not significantly affect those who do not pay much tax because they have many deductions.

Virtually everyone claims as many deductions as possible and pays as little tax as possible.  Those wealthy individuals that legally pay little tax are no less honest than anyone else.

Two things to keep in mind:  

First:  the top 10% pay 68% of the income tax; the bottom 50% pay only 3% of the income tax.

Second:  The higher the tax rate, the less incentive individuals have to invest their money into profit making ventures (or in other words, take risk).  We need these individuals to keep investing; that is what provides jobs to many.  Raising the tax rate too high may be cutting off our nose to spite our face.

Answer 7

This is more of a political question than a tax question.

FACT:  The federal government collects more money when corporate and personal income taxes are lower than they were during the traditional "democrat" regimes.

Why is this?  There are incentives to make money.  The rich do not avoid taxes (or get around them).  The federal system is actually pretty solid with the majority of it having been litigated so heavily that the "loopholes" have been closed.  Taking this a step further, the government does not create jobs, industry does.  That requires capital investment.  If taxes are high available capital is limited.

Unfortunately it looks like we are in for another round of short-sighted government polcies since that is all that the Pelosi's of the world seem to be able to come up with.  Protect us from ourselves.

Answer 8

Take a look at the someone like Warren Buffet.  This is a man at the top 1% financially of society.  His actual taxable income is $0 even though he brings in millions per year.  Is this because of some loophole?  Not really.

Warren Buffet has spent his life investing.  Now his income is from dividends from his stocks.  Dividends are only taxed at 15%.  So to quote the man, "I am the argument for the flat tax in America.  I paid 15% last year, I will pay 15% this year, and continue to pay the same percent until the government chooses to change the dividend tax."

The rich don't necessarily skirt or loophole their way out of the income tax.  They merely remove themselves from the pool of people that have an income to be taxed.