A recent poll showed that 81 percent of Americans believe to pay off our debt we should raise taxes on people making over a million dollars. Yet I would like to state here that that 81 percent is wrong and, perhaps, even brainwashed.
Liberals have been saying for the past several years that we could pay off our debts by taxing the rich. So taxes were raised on the rich and the debt still didn't get paid. In fact, it is so now that only 48 percent of Americans pay taxes. It is also so that 97 percent of taxes are paid by 50 percent of income earners.
So you can pretty much see that taxing the rich doesn't work. And I'd like to tell you why taxing the rich doesn't work. I actually described it quite well in this post, yet I'd like to state it another way here.
In America today, the way the progressive tax system is drawn up, 52 percent of Americans don't pay taxes. So when you have 52 percent of Americans disconnected with the system, it's only normal for them to think "tax the rich."
That 52 percent of Americans don't care how much money the rich pay in taxes because that 52 percent doesn't have to pay. They, in essence, are disconnected.
Plus most of them receive money from the government, money that was obtained from the rich. So it only makes sense that these people wouldn't vote to have their own money taken away.
Solving the problem is simple, yet it would take some balls on the part of a politician. What would need to happen is a flat tax, or a fair tax, where every American pays the same percentage of taxes on their income.
That way every American would have an equal investment, and they would have an incentive to stay connected because, after all, it would be their money that was being taxed, and spent by the government.