Capital gains are taxed lower because they're investments using their own money. If you raise the effect rate what makes you think those evil richies(as they're known) won't invest elsewhere with a lower rate? They will.
This country is in a huge quandary financially and no matter what tax rate is chosen it's not enough to 'fix' our growing welfare state, even if the upper 50% paying all of their money, yep 100% of their income AND savings into the system. Read up on hyperinflation, it's coming soon also. The ruling elite will be fine, others will be left to fend for ourselves.
And I'll leave you with this to ponder...
"The trouble with socialism is that eventually you run out of other people's money" ~ Margaret Thatcher
Can you tell us your personal experiences? I like to hear all perspectives.
yeah, 50% of the US population doesn't pay federal income taxes because they barely make enough to survive. Those are the stats. It's been bandied about on this board a number of times.
In a socialist country, they actually tax the wealthy. The US taxes middle class. God forbid if the wealthy had to give back the money they "earned" off the backs of their employees.
Last edited by Egilbe; 04-14-2012 at 05:33 PM.
Canada, for example, isn't especially homogenous and generally rates higher than the US in terms of quality of life as well as taxation rates.
If nothing else, it casts doubt on the argument that lower taxes are the only way to live better.
I'm not implying a causal relationship, mind you. I'm simply saying that this fear you seem to have that high taxes and socialism in certain areas lead to bad things is unfounded. Generally, the opposite is true.
If America decided to pull a China it might work, but I don't see us becoming Germany or even England.
Fact is that we are Humans, and we will always want more that the guy next door. Even in Communist/Socialistic countries there is an upper crust that has more than average Joe. If you were born or are capable to get into that crust, you will have a better way of life than many. I have experiences this first hand for nearly 16 years and some of my relatives for nearly 50 years. All you have to do is look at the History of these current countries like the one you are living in, China. Even though they are Communist/Socialist, there are huge differences in classes.
I think the real obstacle is the fact that so many Americans seem to simply be indoctrinated with the idea that socialism of any kind is evil. As the many countries with high taxes and high quality of life on that list prove, it really isn't that black and white.
Socialism in countries like the USA leads to the laziness we are seeing. And with people NOT wanting to pay tax because they are too poor and then wanting to take money from the Government is pure BS. I do not mind a Balanced Socialistic country, but programs need to be better ran. The problem is, there are way too many people in the USA and the problems will continue.
And do not pull that **** that China has a better way of life than the USA.
2) China is not socialist or communist. They're very nearly the sort of anarcho-capitalist country that many Ron Paul fans advocate.