This is going to be my last question about Taxes.

[tradeunionsupporter]

How do the Rich/Wealthy keep getting Rich you know the saying the Rich get Richer my question is how do the Rich stay Rich if they are paying themselves less to avoid higher taxes ? The reason I ask this is because I have asked if Capitalists are Greedy my question is how do they keep getting richer thank you very much for your answers. This is going to be my last question about Taxes also please read the links below but first read the debate from Thom Hartmann please don't reply with an answer that includes tax loopholes or tax havens offshore thank you ?


Thom Hartmann: But it seemed, just common sense. I remember back in the ‘80s, I owned a business, International Wholesale Travel in Atlanta, Georgia. That business has, since we sold it done over 200 billion dollars in business. And there was a year when we were doing really, really well and I could either write a big check to myself or not. And I decided not to, because I didn’t want to pay the increased taxes. I put it back into the business. How can cutting taxes on rich people, on high income people, do anything other than encourage them to take the money out of their companies, out of their businesses, and buy fancy paintings or yachts or put it in Swiss bank accounts? How conceivably could that help the economy?


http://www.thomhartmann.com/blog/201...ate-jobsreally (http://www.thomhartmann.com/blog/201...ate-jobsreally)

Raising Taxes Is Good for the Economy

by Adam Eran –

Observes Beinhart: “With high taxes, the only way to retain the bulk of the wealth created by a business is by reinvesting it in the business — in plants, equipment, staff, research and development, new products and all the rest.

http://www.laprogressive.com/politic...or-the-economy (http://www.laprogressive.com/politic...or-the-economy)



If we didn't really need the money, that was an incentive to keep it in the company and to find ways to spend it that took it out of the taxable profit column but increased the value of the company.
High taxes create an incentive to reinvest profits into long-term growth.
With high taxes, the only way to retain the bulk of the wealth created by a business is by reinvesting it in the business -- in plants, equipment, staff, research and development, new products and all the rest.

http://www.alternet.org/economy/106979/ (http://www.alternet.org/economy/106979/)

[RGacky3]

THey don't pay themselves less to avoid higher taxes, because their taxes are high, and they pay themselves huge bonuses as well.

Even if they keep money in their company they are still paying themselves high and still paying them selves a lot more than they spend.

[RGacky3]

please don't reply with an answer that includes tax loopholes or tax havens offshore thank you ?


Yeah, well what if that is part of the answer.

[tradeunionsupporter]

Well I would someone to reply with an answer about tax loopholes or tax havens offshore if someome can explain how they work ?

[ComradeMan]

They have good accountants.

[tradeunionsupporter]

How do the Rich/Wealthy use these off shore bank accounts do they just hide their money or is it just a mystery ?

[RGacky3]

Ask an accountant. We are not tax accountants ... as far as I know.

Or some of them pay their taxes, and STILL get rich ...

[tradeunionsupporter]

Do you think it is a mystery since it is secret for us normal Working Class people to know how it all works ?

[The Dark Side of the Moon]

Well think of it this way, in order to get rich you have to be paid more than 6.50 an hour.

[RGacky3]

Do you think it is a mystery since it is secret for us normal Working Class people to know how it all works ?


You have to have a lot of money before offshore accounts and the such become really useful.

No its not a mystery, I'm sure if you look into cleaver accounting you can figure out the nuts and bolts of it, but it won't do you any good unless you have large amounts of capital to play with.

[tradeunionsupporter]

Tax Day 2011: Deficit Spending Hides Future Tax Hikes

By Curtis Dubay (http://www.revleft.com/About/Staff/D/Curtis-Dubay)
April 14, 2011

Of course, it is impossible to tax at a rate over 100 percent. Doing so would require confiscating savings, investment, or even other assets. Moreover, as a practical matter, it is impossible to get even close to 100 percent and still raise revenue because businesses, workers, and investors would simply stop producing, working, and investing as the government came close to confiscating almost every additional dollar they earned. Much of their economic activity would be driven underground.

http://www.heritage.org/research/reports/2011/04/tax-day-2011-deficit-spending-hides-future-tax-hikes

I know this is from a Right Wing Website but is he correct that taxing past 100% is impossible unless you tax savings investments and other assets thank you very much for your answers ?

[tradeunionsupporter]

I have a question about Taxes my question is how can tax rates go past 100% why would the Government tax 100% of a person's Income was this tax rate in Sweden only temporary ?

Pomperipossa in Monismania
From Wikipedia, the free encyclopedia
"Pomperipossa in Monismania" (also called Pomperipossa in the World Of Money) is a satirical story written by the Swedish children's book author Astrid Lindgren in response to the 102% marginal tax rate she incurred in 1976. It was published starting on 3 March 1976 in the Stockholm evening tabloid Expressen and created a major debate about the Swedish tax system.
The marginal tax rate above 100% which was dubbed the 'Pomperipossa effect' was due to tax legislation which required self employed individuals to pay both regular income tax and employer's fees.
The story, a satirical allegory about a writer of children's books in a distant country, led to a stormy tax debate and is often attributed as a decisive factor in the defeat of the Swedish Social Democratic Party - for the first time in 40 years in the elections later the same year.

http://en.wikipedia.org/wiki/Pomperipossa_in_Monismania

Tax Day 2011: Deficit Spending Hides Future Tax HikesBy Curtis Dubay
April 14, 2011
Of course, it is impossible to tax at a rate over 100 percent. Doing so would require confiscating savings, investment, or even other assets. Moreover, as a practical matter, it is impossible to get even close to 100 percent and still raise revenue because businesses, workers, and investors would simply stop producing, working, and investing as the government came close to confiscating almost every additional dollar they earned. Much of their economic activity would be driven underground.

http://www.heritage.org/research/reports/2011/04/tax-day-2011-deficit-spending-hides-future-tax-hikes

[RGacky3]

Its a marginal tax rate, the person was still making income but above a certain number all of it was being taken, for example perhaps the first 500,000 was taxed at 80% and the next 500,000 was taxed at 100%. There has never been a total tax over 100%, 100% marginal tax just means 100% of your top braket of income is being taxed.

It obviously was only temporary, because its not around anymore.

More importantly why is this important at all?