What Would You Do with a Million Dollars?
Right now there is a lot of talk about Taxing the Rich!
Now if we extend the Bush Tax cuts or cut taxes further as some would argue it will put a lot of money in the hands of Rich People. When Bill Clinton was elected President I found out I was rich. He was only going to Tax the Rich and I got taxed more. I think at the time I was making about $50,000.00 per year which was pretty good in the mid 90's.
What will the Rich People do with all the money they would save from Tax Cuts. Tax Cuts could save some $1,000.00 a year, for others it might be $10,000.00, $100,000.00, or more. But for fun let's focus on $1,000,000.00. What could a person do with $1,000,000.00 of extra income. Remember this is money over and above your basic living expenses:
- Invest it in the stock market providing capital for growth of business and employment.
- Spend it on Luxury items that people would have to build, transport, sell and take care of, all generating jobs.
- Give it to Charity. Now some charities can be rather flaky, but most people give money with a purpose in mind and make sure it is used right; especially when it is a million dollars. What do you want to bet most private charities are more responsible and productive than the government?
- Put it in the Bank where others could borrow it to buy homes and start businesses. This also creates jobs.
Now certainly the money could be put to harmful purposes like supporting terrorism and crime, but there are other laws, besides taxes to seize money used for those purposes. About the only bad thing an honest person could do with the money would be to hide it in a mattress.
What would the government do with that money? If it was taxed away?
- Give it to corrupt business leaders and bankers?
- Give it to foreign banks?
- Give it to political allies in exchange for campaign contributions?
- Pay for academic studies on what is funny? or why people enjoy sex?
- Pay government workers twice what a private sector worker cost!
- Direct government contracts to politically connected individuals!
- Fund a culture of dependency destroying our work ethic and values?
Certainly there are plenty of legitimate government expenses, but we have enough money for those.
The other flaw in all this is that the corrupt and over spending government has made it hard for honest men and women to use the money as they might above and not have it stolen by the government and their elitist allies in banking and Wall street.
But ask yourself a question - Where is the money going to do the most good? In the hands of people that know how to make it or in the hands of those that know how to spend it?
One final thing. They call it taxing the rich, what they really do is tax people trying to get rich and build something for their family. People that are rich and already have money do not pay income tax. They do pay attorneys and accounts to avoid taxes.