Tuesday, June 07, 2011

One more reason why 'taxes on the rich' mostly hit others

Take a look at this chart showing the mix of income between salary and investment income by income level:


Note that the superrich make most of their money from interest, dividends and capital gains.  These sources are much easier to 'time'.  Even more importantly, these sources flow to the places with the lowest taxes on capital.  Our taxes on capital are the highest in the world.  We cannot raise them without imperiling our economy.  Thus, when people talk about 'raising taxes on the rich' they are really talking about taxing the red lines.

Social Democrats realized a long time ago that only proles can't flee taxation.  That is why the world over they have been made to pay for their own 'salvation'.

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