Quote:
Originally Posted by GregWeld
On a personal note --- what people don't see is how many people make a living off the "rich" guy. The building of my home here in Sun Valley will keep some people employed for over two years. If I was taxed at ordinary rates - I'd have built a smaller project - or not built at all! I could have bought some other place (only the real estate agents would have gotten any income). That would have affected an awful lot of people here in the valley. The excavator - the cement guys - the framers - the plumbers - the electricians - the HVAC guys - the roofers - the sheet rockers - the painters... NONE of those guys would have made a dime off this project - and therefore neither would they pay ordinary income taxes on their earnings. So they can tax ONE guy (me) or they can collect taxes on a 100 people. I go out and have a meal regardless of the taxes I pay. But think about the 100 people. Do they go out or stay home? Do they buy some new equipment or not? Do they buy a new snow machine or have to sell the old one to pay the rent?
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For any one that may be wondering, that is what trickle down economics means.
I remember the luxury tax of 91 even though I was only 11 and far from luxury. I remember it because twice a day I would cross the bridge into and out of Thunderbolt, Georgia and get to see the yachts and sailboats that were being worked on in the town. Seemed like in one day they disappeared and the company folded. It took a very long time for another business to open shop and be successful in that area. There was another shop in Savannah that I didn't get to see that also lost a lot of business due to that tax.
I too can see something similar happening should dividends become ordinary income tax. Only the harm will be much more broad. Let's hope no one gets any dumb ideas about changing the tax code and punishing retirement savings.