From Alexander Green:
I know, I know, Washington politicians promise they aren’t going to raise your taxes, and that they’re only going to raise them on the 2% of American households that make $250,000 or more. This is horse manure.
Having deliberately set up a fiscal crisis over the past decade, our elected misrepresentatives will soon be searching for ways to raise revenue to meet these obligations. The politically convenient idea is to raise taxes only on “America’s wealthiest.”
Yet earned income is often a poor indicator of wealth. Apple (AAPL) CEO Steve Jobs, Citigroup CEO (C) Vikram Pandit, Google (GOOG) CEO Eric Schmidt, Yahoo (YHOO) CEO Jerry Yang, Oracle (ORCL) CEO Larry Ellison and Berkshire Hathaway (BRK.A) CEO Warren Buffett all receive annual salaries of $1.
Real wealth is determined by looking at a balance sheet not an income statement. The tax code is set up to punish high-income earners, many of whom are not rich but rather striving to become rich.
The problem with raising taxes on high earners is that this country badly needs to create jobs in the private sector. These top 2% – who already pay almost half of all income taxes, according to the Internal Revenue Service – are overwhelmingly small business owners. If the economy is going to grow, we want to encourage them to open new businesses and expand existing ones.
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