This should come as no surprise to anyone, but generally the middle income earners pay the majority of the Federal/State Income taxes. To illustrate where the IRS gets most of its revenue, I will use a simple Bell Curve. Take a piece of paper and with a pencil or pen simply draw the shape of a BELL.
On the left side of the Bell, just outside of the line write “10%”. On the right side of the Bell, just outside the line write “10%”. Inside the Bell diagram write “80%”. The left side of the Bell shows that 10% of the people in the U.S. do not pay any Fed/State taxes because they are either not working or are getting a very small income. The right side of the Bell shows that 10% of working American are what Senator Obama would call Wealthy Americans. The remaining 80%, those inside the Bell are Middle Income wage earners of varying degrees of income. As you can see Middle Income wage earners is where the Democrats go to for more money in the form of a TAX Increase.
For this election Senator Obama/Biden are claiming that they will reduce the Taxes for those who reside inside the Bell and only increase Taxes for those who reside on the right side of the Bell, which by the way include all of America’s huge corporations. This sounds great, but, there are consequences to any Tax Hike of any kind. Lets take a closer look:
I will start by stating a few basic truths about the RICH:
1. The Rich did not get Rich by paying huge sums of money to the Government.
2. Corporations like profits and will NOT see their profits lowered by increased Taxes. Corporations will pass the increase onto the consumers, that means you and me, Middle Americans.
3. The incentive to become Rich is diminished knowing that once you reach the $250,000 or greater mark, the Government will swoop down and take it away as planned by the Senator for Change, Obama
If Senator Obama/Biden win the Presidency the Wealthy Americans will see a Tax Increase and everyone else will get a Tax decrease. Lets follow the money. I will use Corporation “A” as an example, but this also applies to every Small Business Owner in America that qualifies for the Tax Increase.
Corporation A is made up of Employees, Middle Income Americans, and those Americans who have bought Stock in the Company, usually the Wealthier Americans. The revenue from the sale of stock is used by the Corporation for Research and Development, Buying other Companies, etc….
The people who own this stock in Corporation A expect to earn a profit from their investment and the Corporation will do anything it can to provide that profit. So, if Corporation A now has to pay more Taxes, the corporation has to get the money from somewhere and still provide a profit to the shareholders.
Corporation A has several solutions:
1. Lay off Employees and ship the jobs overseas where the labor is cheaper and where there is a more favorable Tax structure. Enjoy that TAX Break while you can, because you may be outsourced to pay for it.
2. Raise the cost of the product that is being sold to the consumer. Maybe this will work since Middle Americans will have that big reduction in their Taxes. At least for those who still have their Jobs.
On the left side of the Bell, just outside of the line write “10%”. On the right side of the Bell, just outside the line write “10%”. Inside the Bell diagram write “80%”. The left side of the Bell shows that 10% of the people in the U.S. do not pay any Fed/State taxes because they are either not working or are getting a very small income. The right side of the Bell shows that 10% of working American are what Senator Obama would call Wealthy Americans. The remaining 80%, those inside the Bell are Middle Income wage earners of varying degrees of income. As you can see Middle Income wage earners is where the Democrats go to for more money in the form of a TAX Increase.
For this election Senator Obama/Biden are claiming that they will reduce the Taxes for those who reside inside the Bell and only increase Taxes for those who reside on the right side of the Bell, which by the way include all of America’s huge corporations. This sounds great, but, there are consequences to any Tax Hike of any kind. Lets take a closer look:
I will start by stating a few basic truths about the RICH:
1. The Rich did not get Rich by paying huge sums of money to the Government.
2. Corporations like profits and will NOT see their profits lowered by increased Taxes. Corporations will pass the increase onto the consumers, that means you and me, Middle Americans.
3. The incentive to become Rich is diminished knowing that once you reach the $250,000 or greater mark, the Government will swoop down and take it away as planned by the Senator for Change, Obama
If Senator Obama/Biden win the Presidency the Wealthy Americans will see a Tax Increase and everyone else will get a Tax decrease. Lets follow the money. I will use Corporation “A” as an example, but this also applies to every Small Business Owner in America that qualifies for the Tax Increase.
Corporation A is made up of Employees, Middle Income Americans, and those Americans who have bought Stock in the Company, usually the Wealthier Americans. The revenue from the sale of stock is used by the Corporation for Research and Development, Buying other Companies, etc….
The people who own this stock in Corporation A expect to earn a profit from their investment and the Corporation will do anything it can to provide that profit. So, if Corporation A now has to pay more Taxes, the corporation has to get the money from somewhere and still provide a profit to the shareholders.
Corporation A has several solutions:
1. Lay off Employees and ship the jobs overseas where the labor is cheaper and where there is a more favorable Tax structure. Enjoy that TAX Break while you can, because you may be outsourced to pay for it.
2. Raise the cost of the product that is being sold to the consumer. Maybe this will work since Middle Americans will have that big reduction in their Taxes. At least for those who still have their Jobs.
No comments:
Post a Comment