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Old July 28th, 2011, 08:14 AM   #21 (permalink)
nlsme
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Quote:
Originally Posted by persim View Post
This scenario is completely wrong. The rich guy is not an investor, he is an employer. He pays the employer part of the workers payroll taxes and pays for taxes on his earned income.

This is completely untrue, I have been investing since I was 16 with a minimum wage job, when I was paying my way through college and up until today. Everybody has the opportunity to invest, whether they choose to or not is a completely different matter.
Semantics. A rich guy invests in a company. Said company has an employee that makes $15/hr. The return on the rich guys investment is $15 for every hour the poor guy works. The poor guy pays $2.5/hr in taxes, the "investor" pays $1.25 for every $15 return on his investment. How is this fair?

How is it completely untrue that the rich have far more to invest with? The top 20% of Americans hold 80% of the nations wealth. The top .6% hold over 50%. The bottom 80% only hold 20% of the nations wealth. It is pretty clear that the capital gains tax benefits the wealthy in an extremely lopsided manner. Considering that is where most of their money comes from, investment (not payroll), why even discuss margianal tax rates on the rich at all. That is not what their tax burden comes from, by and large.
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