old europe, McCain's plan sounds better to me. Why not give a bigger percentage tax cut to those who are paying more taxes? The rich do pay more in taxes to begin with, and they often are the ones creating jobs.
By the way, if someone makes 603K per year they could be a hardworking small business owner who supports an extended family and employs 300 workers. Why is it that earning more than average is made out to be a bad thing to be punished?
We're not just talking "more than average." We're talking 10x the median household income in the US. Making that kind of income is not punishment and neither is asking them to pay taxes. In terms of tax rate, there is a significant reduction in tax rate once you pass the social security threshold as it is. I love it when I pass the threshold for a given year and watch my paycheck zip upwards. If you make 603K/yr, you are paying a lower overall federal tax rate than someone making 80k/yr. More in taxes, but a lower tax rate.
Some reasons why the rich should pay a similar or higher percentage of taxes:
- Available discretionary funds are significantly higher. Your small business owner above has a whole lot of money left over after paying the mortgage, utilities, daycare, healthcare, etc. That guy at 80k/yr is doing ok to take a yearly vacation. Asking the rich guy to pay another 10k/yr will piss him off, but not impact his lifestyle at all. Cutting the 80k/yr guy's taxes by $1000 will make a real difference.
- Investment of excess funds only stimulates the economy if there is a lack of capital available for business growth. That is clearly not the case today. Wall Street is awash in money lo0king for reasonable investment opportunities. The rich don't run out and spend their tax cuts since they already own whatever they want (within reason). The middle income folks might be more tempted to spend and simulate the economy.