Why Taxing The Rich Won't Help (wage, legal, solution, economic)

[Motion]

To those who believe that the solution to America's defict problem is to simply tax the rich more.

I just saw on CNN's Wolf Biltzer's show where they fact checked this idea that many have that if you simply tax the rich more then this would greatly reduce the deficit. Well according to the program taxing the rich even more may not bring in enough revenue to reduce the deficit as many assume.

They broke down two basic reasons why this is:

1.) Many of the rich have their money tied up in investments that are more vulnerable during recessions.

2.) There just aren't enough rich people to tax to make a significant difference with the deficit.

[bobtn]

Add in the fact more of the rich are changing their home "countries", and its the old "Be careful what you wish for".

[pommysmommy]

Wealthy people have top notch financial advisors who know how to legally park money off shore. Taxing the rich more will not generate more revenue. It may generate more revenue for financial advisors to the wealthy.

[Memphis1979]

I don't know to many people who say

"Just tax the rich", and don't mention cuts behind that.

The Republican plan is "Just cut programs", without giving any tax increases.

As is generally the case, the answer lies in the middle.

Tax the rich more, or at least cut their loopholes, and cut spending.

[parfleche]

Reminds me of the so called luxury tax that drove most American yacht builders off shore,costing thousands of jobs. Bite the hand that feeds you always has the same results. who you gonna tax now you idiots?

[Leisesturm]

If only because whenever the issue comes up the posts get frequent and frenetic I say "do it". Anything that elicits the kind of reaction I see has got to be onto something. It really isn't rocket science btw. No one really needs liberal bloggers to tell them that there are trillions tied up in the coffers of the wealthy even while social programs are placed on the chopping block. Mexico and Venezuela are relatively wealthy countries because of oil but a large fraction of their populace lives in abject poverty. This is an income distribution issue. Period. The Scandinavian countries do not have a natural resource profile of any of the Central and South American countries but because what wealth there is is distributed far more equitably you do not have the phenomena of flavela's or economic refugee's glutting America's low wage job sector. It would appear that America would rather keep socio-economic company with Third World two class nation states than with First World democratic socialist republics. Fine, but expect pushback.

H