Premium Essay

Taxing or Not Taxing the Rich

In: English and Literature

Submitted By margoo
Words 1061
Pages 5
ENGL 1101
29 April 2013
Taxing or Not Taxing the Rich
What is the most palpitating issue publicly discussed in the US now? Without doubt, it concerns US economy, its deteriorating position and the ways to cure it. Robert Reich, an American political economist and commentator, decided to put some skin in the game and published the article with unpretentious name “Why we must raise taxes on the rich”, where he suggests raising the tax on income of top earners as a catalyst of economic growth. Obviously, he misinterprets certain economic models, openly juggles with nicely sound stereotypes, and fails to investigate the roots of the economic problem.
At first glance, the fact that super rich pay dramatically lower income taxes now than they did in 1950, as mentioned in the article, strikes the reader with seeming unfairness. Yes, it sounds good and fair that the income should be taken from those to pay and redistributed among those who need it, as in Robin Hood scenario. And yet, it is still true that such changes in income rates did occur since World War 2. But it is not indicative of any severe and unforgivable mistake, which needs to be revised at soonest in order to reach the magical number “$ 350 billion” in tax revenues and solve nation’s issues, as proposed by Reich. In spite of the seeming benefits of imposing higher taxes on the rich, such as redistribution of income, ability to pay and fairness, higher marginal or effective tax rates discourage productive activity of the rich, creating disincentives to take risks and produce more. Such policies mean less potential profit, so individuals are less likely to invest and start new businesses, and more likely to cut current working places and reduce salaries. In short, productive performance is discouraged leading to a decrease in economic growth, opposite to what is “wisely” suggested by Reich. It could be…...

Similar Documents

Premium Essay

Rich

...Memorandum April 12, 2012 ------------------------------------------------- SUBJECT: Smart Couples Finish Rich Analysis Mr. I would like to follow up with your inquiry made during last week’s meeting regarding David Bach’s Smart Couples Finish Rich. I have since completed reading the book and will present and discuss several of the author’s major insights which I believe will be most beneficial to you. Bach presents the content of his book in a 9 step process which results in a financially successful future for couples. The book is part personal finance and part relationship counselor. It discusses how money can often be the root of many arguments for couples and how to avoid this problem by working towards a financially secure future together. I will discuss the following the three most important points in Bach’s book and why they can be so valuable to implement into your life: * Be open with your partner with regards to finances and work towards goals together * Small frivolous spending is what keeps many from becoming rich * Start early in building your retirement fund An early step in Bach’s process is “Plan Together… Win Together” long term planning with your spouse and developing a system which you can assess your goals. This entails keeping track of financials and establishing a common ground between the couple. This is very important so you can establish a benchmark system so...

Words: 473 - Pages: 2

Premium Essay

Taxing Memo

...interoffice memorandum to: | Managing Director | from: | Christy Edwards | subject: | different Types of Vechiles you can you to miniMIZE INCOME TAXES, cAPITAL gAINS TAX, AND ESTATE TAXES | date: | May 7, 2013 | cc: | [Name] | | STEVEN STEWART | There are many ways to save on all types of taxes here are just a few. The different types of Methods you can use to minimize Income taxes, Capital Gains Tax, and Estate Taxes. Income Taxes 1. Earned Income Credit (Having Children living in the home can give you an EIC credit) 2. Itemizing Deductions (mileage for work and uniforms) 3. The Alternative Minimum Tax (has a larger exemption. When the exemption goes up, you can save on your tax bill if the ATM applies to you. For single taxpayers the exemption is $46,200. For married taxpayers filing jointly the exemption is $69,950. 4. First Time Homebuyer Credit : (The First Time Homebuyers credit allows you to get back some of the money you paid on your home) 5. If you work at home you can earn a credit for having an office at home. 6. Business Miles Deduction: If your business does not cover your mileage when you travel. 7. Midwest Disaster Tax: If you live in the Midwest disaster area affected by severe storms, tornadoes and flooding. 8. Residential Energy Efficient Property Tax Credit (If you have installed solar panels or energy saving appliances in your household. Capital Gains Tax Your capital gains rate could be 0% this year. If......

Words: 554 - Pages: 3

Premium Essay

Rich Manufacturing

...Rich Manufacturing Gordon Perkes Why do many firms use cost-plus pricing for supply contracts? Cost-plus pricing is a pricing method used by companies to maximize their rate of returns. It is also known as markup pricing. Many firms use cost-plus pricing because it is one of the more common methods of pricing. “Firms that use this technique calculate average total cost and then mark up the price to yield a target rate of return”. I would say the biggest reason for cost-plus pricing is that it guarantees a profit. Even if the price of the part was reduced, it is built in so that a profit would be made. Unit cost = variable cost + (fixed costs/unit sales) What potential problems do you envision with cost-plus pricing? Even though cost-plus pricing guarantees a profit, it can be very ineffective. It does not take into consideration what the consumer is doing, nor its competition. If a firm agrees to pay cost-plus pricing, they are guaranteeing a profit to the vendor no matter how the company is managed. By keeping this pricing model it does not give the vendor any incentive to maximize its production, because it is already guaranteed a profit. It is actually taking away from the customer. What is being done with the money between what the customer is paying and the return the vendor is making? It brings up the question, is this benefiting the customer in the best way possible? Should Gina contest the price increase? Explain. After proper research I feel that......

Words: 610 - Pages: 3

Free Essay

Rich

...Taiwan and the Competition for Diplomatic Recognition TIMOTHY S. RICH Diplomatic recognition is generally seen as fundamental to the modern state system. The traditional views of recognition however focus almost exclusively on political or ideological rationales, ignoring other foundations on which other countries base establishing diplomatic recognition. Focusing on the Republic of China (Taiwan) suggests a more complicated view where economic self-interest on one side and national pride on the other may undermine traditional conceptions of recognition. Using the ROC-PRC diplomatic battle as a case study, this paper hopes to shed light on two questions: why, despite the PRC's rise as a global power, a country would continue to formally recognize the ROC and secondly what does the ROC receive in exchange for such high-cost endeavors to maintain recognition. In this case mutual ideological rationales have greatly diminished while I contend that economic factors have predominantly maintained this diplomatic battle. In addition, previous research often focuses on major world powers granting or withholding formal recognition to smaller states. In this situation, poor countries with typically little political influence are the major players, suggesting different rationales behind recognition. Methodologically, this paper blends qualitative and quantitative analysis to uncover factors affecting recogni- T IMOTHY S. RICH is a doctoral student in political science at the......

Words: 6627 - Pages: 27

Premium Essay

Rich Manufacring

...Rich Manufacturing p.170 1. Why do many firms use cost-plus pricing for supply contracts? Cost-plus pricing is a pricing method used by companies to maximize their rate of returns. It is also known as markup pricing. Many firms use cost-plus pricing because it is one of the more common methods of pricing. “Firms that use this technique calculate average total cost and then mark up the price to yield a target rate of return”. I would say the biggest reason for cost-plus pricing is that it guarantees a profit. Even if the price of the part was reduced, it is built in so that a profit would be made. Unit cost = variable cost + (fixed costs/unit sales 2. What potential problems do you envision with cost-plus pricing? Even though cost-plus pricing guarantees a profit, it can be very ineffective. It does not take into consideration what the consumer is doing, nor its competition. If a firm agrees to pay cost-plus pricing, they are guaranteeing a profit to the vendor no matter how the company is managed. By keeping this pricing model it does not give the vendor any incentive to maximize its production, because it is already guaranteed a profit. It is actually taking away from the customer. What is being done with the money between what the customer is paying and the return the vendor is making? It brings up the question, is this benefiting the customer in the best way possible 3. Should Gina contest the price increase? Explain. After proper research I feel that Gina should...

Words: 387 - Pages: 2

Premium Essay

Ms Rich

...rich The guidelines for system development The Standards consist of development phases, steps and outputs. There are eight phases, each one with multiple steps, which in turn may have one, or several, outputs. While these are presented in a certain order, outputs are not necessarily completed in this sequence. Once projects are approved, Project Managers select the appropriate documentation for each project, using the Checklist for System Development Life Cycle Standards, reproduced at the end of the Introduction. The Checklist enumerates all development phases, steps and outputs. Project Managers select, record and obtain management approval for which documents they anticipate using, and the brief rationale for not selecting others. Each output description contains the purpose of the output, its recommended content, and the recommended techniques and tools. Many of the outputs have samples that show how they have been applied. Other documentation is acceptable as long as it provides the essential elements contained in the output and its name and number are referenced. The Standards are most useful when employed as an organizing device for outputs that may include records, agreements, discussions, minutes of meetings, use of samples, etc. Any information in funding applications or from other sources could be used in the SDLCS Outputs as long as the information provides the essential elements contained in the output and the output’s name and number are referenced. The......

Words: 460 - Pages: 2

Free Essay

Are the Rich Happy

...Are the rich happy? Sasha Winther 2.p – Solrød Gymnasium Stephen Leacock’s literary achievement is largely in the mastery of the comic sketch. He has written a collection of short pieces that are unrelated to each other. He writes styling is miniaturist, and his focus is on the small details. The subject he usually writes about, are extensive, but usually appeals to the average man. The humor is a form of frustration or mild victimization, in this case the rich man’s sadness over the resignation of his butler. ’’Are the rich happy?’’ is written by Stephen Leacock, 1916. It is from the collection Further Foolishness: Sketches and Satires on the Follies of the Day. The text has an episodic structure, and there is a lot of narration. He tells a story of his encounters with people he thought to be rich. He sarcastically tells the story using vague descriptive language. The descriptions are unclear, one cannot see or feel, but it is easy to understand who he is talking about, their expressions, and their lifestyles. He makes a clear comparison between the rich and the poor. In his text he speaks of a man who makes fifty thousand dollars a year and has told him that it is impossible to keep up with the rich and that it is better to accept the fact of being poor. He describes how a man can only give him a plain meal that he calls a home dinner, but that it takes three men and two women to serve it. Stephen Leacock shows his opinion by using sarcasm. It is the irony and......

Words: 601 - Pages: 3

Premium Essay

Rich

...How to become rich As I remember there is a pop song “I want to be a billionaire so freaking bad, buy all of the things I never had”, this melody still stick in my head all the time. How to become rich? I ask myself this question every day. Become rich has different meanings for different people. The term rich can also be applied to the accumulation of other things besides wealth. Things like good health, close relationships with family and friends, a rewarding career, and enjoyable hobbies can make people feel rich as well. Of Course everybody dreams to being rich, who wouldn’t, but being rich in wealth without being rich in life would in my opinion to be pointless. Being in good health allows a person to enjoy life with or without having money. Not having to go to the doctor constantly for things such as heart trouble, diabetes, depression, or arthritis is a blessing. When we can be mobile without pain to do even the simplest of things, this allows us to live an enjoyable life. I could be a person without the convenience of monetary value and have a wonderful family and friends to share my life with that would make me rich in life. No one can put a price on having a family that is there for you through good times and bad. When the time comes that you need a shoulder to lean on or someone to just listen to you vent, nothing beats family and friends. True friends will always pick you up when you fall or stumble, share secrets with you, and they will be the first to give......

Words: 293 - Pages: 2

Premium Essay

Ultimate Rip-Off: Taxing Tale

...“The Ultimate Rip-Off: A Taxing Tale” At the beginning of “The Ultimate Rip-Off: A Taxing Tale”; it discusses how Jeff Burke, a Special Agent for the IRS agent, used to love playing and pitching in softball when an unfortunate accident lead him to the doctors' office. Luckily, Jeff had not suffered any serious injuries, nothing an ice pack couldn’t fix. As a mental note Jeff was going to make purchasing jock support a priority. After leaving the doctors' office Jeff reflected on the fact that most doctors are active investors in securities, bonds, rental properties, and especially real estate. Jeff drifted off into daydream land and thought about the days when he would have been able to audit the doctors’ office. Today, however, an agent can look at only taxpayers’ files that they are auditing. The plot begins when Jeff received a call from Nick Anderson, an elite Special Agent and a longtime friend, who works for the Treasury Inspector General for the Tax Administration Division (TIGTA). Nick had suspicions that there was a crooked IRS agent in a critical position. Nick had started out his career as a strike-force Agent; their basic function was to uncover possible criminal activities. Their duties often consisted of undercover work. The book explains some terms used in the industry along with some statistics, and IRS history. For example, in 1998 Congress prohibited financial status or economic reality techniques to determine the existence of unreported income unless an......

Words: 1136 - Pages: 5

Premium Essay

The Definition of Rich

...Definition of Rich I used to envy someone who was wearing luxury clothes with an expensive purse on the street. I used to think that being rich means having a lot of money to buy everything I want, so my definition of rich was only about money. Even though I asked some of my friends, “what you think about the definition of rich,” their thoughts were just like mine. Being rich means not worrying about finances and doing what they really want to do. However, my mother gave me a different definition of rich. She let me know what rich really is. She told me, “Being rich is not too much about the income. It’s about what we have owned in our lives.” In other words, it has more to do with quality of life. My mind woke suddenly with a start when I heard what my mother said. I used to comprehend only the superficial meaning of rich. I realized that I was wrong. The underlying meaning is our lives. Therefore, the definition of rich that my mother told me has helped me realize I shouldn’t only pursue money if my goal is to be rich. I should cherish and care about what I have owned today. It’s like my family, my friends, and my campus life. These are all my wealth. Also, I have been learning something new to enrich my mind. If we can stay with someone that is important to us and enrich the inside of our mind, we can say we are rich no matter how much money we have owned. I don’t think many people can accept my mother’s definition of rich. My mother told me that she explained rich in this......

Words: 914 - Pages: 4

Premium Essay

Carbon Taxing

...In my opinion, the imposition of a “Carbon Tax” would not be the most effective way to reduce the fossil fuels. There has been recent efforts taken to reduce the greenhouse gases produced by fossil fuels being burned. An increase in CO2 concentration in the atmosphere is the result of the combustion of fossil fuels. When CO2 and H2O combine, a weak acid, H2CO3, is formed (CO2 + H2O -> H2CO3). Many suggest that carbon taxing is an effective way to reduce this from happening. “A carbon tax is an environmental tax applied to the burning of fossil fuels in order to discourage the production of greenhouse gas emissions such as carbon dioxide.”(Eco Life). There are many scientist that believe this is a very effective way to reduce fossil fuel use. Others disagree with the idea. Carbon taxes are taxes on eight five percent of the energy we use, are not practical on an economic level, and will not directly affect climate change. First, carbon taxing is placing a tax on eighty five percent of the energy we use every day. “A majority of American’s energy needs come from carbon-emitting conventional fuels…” (The Daily Signal). The use of fossil fuels power our nation. Why would one want to take away the energy that runs our country? Replacing this energy would be very challenging. Realistically, the low-carbon substitute technology simply does not exist. “The technologies to significantly reduce greenhouse gas emission from fossil fuels, however, are decades away and extremely......

Words: 576 - Pages: 3

Free Essay

Rich Picture

...Rich Picture The Rich Picture is a technique used in industry to understand the problem areas within Complex Information Systems. It is an unstructured way of capturing information flows, communication and, in essence, human activity. Including both the internal and external influences upon Ford. This enables management to understand how the business currently operates and helps identify problems areas. Currently Fords main problems areas are in * Customer buying habits are changing, do customers want a platform to be able to purchase and customise a car online. Currently ford does offer online customisation however consumers are still not able to buy a car online. * Another main problem area is regulation- as ford sell cars all around the world they have different taxes and regulations to abide to. * Threat of new entrants: self driving cars- people asked about automous self driving cars in the future, -ford suggested that they wouldn’t want to be the first mover as it is complex and could potentially have severe consequences. And in the current situation in the market there is more money in the current market.- maybe just focus on what they are good at. * Production is carried out all around the world therefore production is reliant upon many suppliers therefore if for any reason a supplier goes bankrupt this could have on-going consequences throughout the production process NEXT WE WILL LOOK AT THE WORK SYSTEM SNAPSHOT FOR FORDS CURRENT...

Words: 503 - Pages: 3

Free Essay

Rich Girl

...Strayer University ENG 115 Professor: January 15, 2016 “Facing Poverty with a rich girl’s habits” Identify the source (writer and title of essay) and state his or her most important point in your own words. The title of the essay was, “Facing Poverty with a rich girl’s habits” written by Suki Kim. Suki main point of the essay was to explain to her readers that she had experienced some challenges adapting to the beliefs and cultures living in America, versus living in Korea. Summarize the other main points and their supporting details in separate paragraphs. “I thought because in South Korea I had been raised in a hilltop mansion with an orchard and a pond and peacocks until I entered the seventh grade, when my millionaire father lost everything overnight (Suki Kim).” Another main point that Suki was trying to make was challenging accepting a new way of living compared to how she was raised to living in Korea. Also Suki, felt it was important for the audience to know that the way she looked at life had changed since she moved from Korea. Finally, a point of the essay was that she was still the same person and that her culture and beliefs did have to change because she lived in a different part of the world. Discuss the (1) writer’s purpose, (2) genre, (3) audience, and (4) tone (attitude), The writer’s purpose would to tell her audience how she adjusted to life as a rich girl to living in poverty barely making ends meet. Suki’s genre could be......

Words: 511 - Pages: 3

Premium Essay

Rich Girl

...Na, na, na, na, na, na, na, na, na, na, na, na Na, na, na, na, na, na, na, na, na, na, na, na Na, na, na, na, na, na, na, na, na, na, na, na Na, na, na, na, na, na, na, na, na, na, na, na If I was a rich girl (na, na) See, I'd have all the money in the world, if I was a wealthy girl No man could test me, impress me, my cash flow would never ever end Cause I'd have all the money in the world, if I was a wealthy girl Think what that money could bring I'd buy everything Clean out Vivienne Westwood In my Galliano gown No, wouldn't just have one hood A Hollywood mansion if I could Please book me first-class to my fancy house in London town All the riches baby, won't mean anything All the riches baby, won't bring what your love can bring All the riches baby, won't mean anything Don't need no other baby Your lovin' is better than gold, and I know If I was rich girl (na, na) See, I'd have all the money in the world, if I was a wealthy girl No man could test me, impress me, my cash flow would never ever end Cause I'd have all the money in the world, if I was a wealthy girl I'd get me four Harajuku girls to (uh huh) Inspire me and they'd come to my rescue I'd dress them wicked, I'd give them names (yeah) Love, angel, music, baby Hurry up and come and save me All the riches baby, won't mean anything All the riches baby, won't bring what your love can bring All the riches baby, won't mean anything Don't need no other baby Your lovin' is better than gold,......

Words: 565 - Pages: 3

Premium Essay

Taxing High-Fat Foods

...Taxing high-fat foods would be a great way to reduce the incidence of heart disease and help offset the cost of its treatment. While there is an epidemic of obesity in the United States and throughout the world, the cause is not at all well understood. Fat, sugar, lack of exercise, poverty, and giving up smoking have all been cited as reasons for increasing obesity. We are exposed on a daily basis to hundreds of advertisements, many promoting specific foods that are supposed to be convenient and nutritious. The food industry, miraculously, has escaped taking the brunt of the blame for years, using fast food as a scapegoat. Fast food, while a major contributor, is not the primary cause of the obesity epidemic in America. Numerous studies have proven that personal food choices, lack of exercise, and genetic disposition all play a role in a person's weight; however, there are other elements that influence our weight. In particular, food producers that supply products high in sugars, minimally nutritious, and highly processed foods that dominate our market must be examined. Sugar is clearly very deleterious and quite unnecessary for satisfactory nutrition but fat is not an optional part of the human diet. Fat is necessary for health, all your cell membranes are made of cholesterol for example, which makes this qualitatively different from taxing things like cigarettes and alcohol. Also there is no doubt that taxing food is regressive, the poor pay more of their incomes for......

Words: 740 - Pages: 3