If you tax the rich, who is going hire the less fortunate lower class?

Question

I'm rich, if companies are taxed higher we will employ less people. If possible we will move operations overseas.

Answer 1

You're rich, eh? Do you have a need to be richer? If so, why? If not, why not help those less fortunate by providing a living wage?

Answer 2

very progressive of you

Answer 3

Most employers are corporations and other businesses, not wealthy individuals.  Corporations pay corporate income tax on a very different graduated rate system from the rate that applies to individuals.  Their maximum tax rates don't kick in until their taxable income is more than $50,000,000, and this is much higher than the corresponding rate for individuals.

Most rich people are rich because they inherited the money, not because they run businesses that employ lots of people.  Many of them are shareholders in corporations, but corporations are taxed separately from their shareholders.

If you increase taxes on the rich, by itself it's not going to change employment rates.  Again, most people don't work for the rich; they work for corporations.

What I am saying is especially true for employers that could move overseas.  Corporations are indifferent to where they operate--they will go where the labor is cheapest and taxes are lowest.  Rich individuals are not indifferent.  A rich person is not going to move from the U.S. to India or China merely because employees are cheaper there.  There is no reason to.  

I'm not saying that your overall point of view is wrong.  But I think it is based on a misconception that somehow rich individuals directly employ working class people.  That's just not true.

I have to confess I find it somewhat difficult to believe that if you are rich, you didn't know all of the above already.

Answer 4

But , there is taxation abroad as well.