There is a hidden tax that comes with every tax increase. This is the increase in costs of products and services. Just as an increase in the cost of oil ripples through the economy, driving up other prices, tax increases spur a rise in costs. However, the price of oil can go down and that can result in lower costs and lower prices. But you won't see a reduction in taxes because Washington and your state capitol won't ever really lower taxes. What they do is shift the burden from one segment of society to another. So taxing the rich might save you from getting a tax increase, and may get you the vaunted "rebate" but it will cost you elsewhere. And you won't really get a significant tax decrease. Especially if you are in the lower 40% of working people. After all, you don't pay income tax anyway. But the taxes that get shifted to the rich will result in the rich shrinking their tax profile which will result in lower revenue for the government which will then raise other taxes to make up for the shortfall. Cities and counties raise property taxes to make up for the lower funding from the state, the state raises taxes to make up for the lowering of revenue sharing from the federal government.
I'm not rich. I've never been rich. I've been a working stiff who managed to save some money so that I could take advantage of an early retirement. I won't be hurt directly by a tax increase on the rich, I'll feel it elsewhere. I know this because I have seen it happen again and again. That tax rebate you are promised? It won't amount to much. It won't mean you can buy a new car or pay off the enormous credit card debt you've run up. It'll pay for a night at the ball park with your family where you can watch a bunch of men making 100 times what you make play a game you used to play in a sandlot. And the team will raise the ticket prices and the concession stands will jack up their prices to pay for the tax increase they were hit with to pay for that rebate you got.
But, hey, you get to feel good about the rich getting skewered, don't you? It's not about the money, it's about envy and anger. Be careful what you wish for.
A Night Unremembered
7 years ago