ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Tax the Rich & Redistribute Wealth. Democrats Out of Touch

Updated on March 11, 2013

The Out of Touch Occupy Movement

Tax the Rich

It's everywhere! Now that the Democrats have won the election. Obama's famous speech of redistributing the wealth is back, but this time with the added "tax the rich" from the occupy movement.

The Democrats have done a great job of demonizing successful people and generating a genuine hatred toward American's who have worked hard to achieve success.

Robbing the Rich to Give to the Poor is Fantasy

What would happen if we did tax the rich? Let's go ahead and do just that! Just for the sake of argument, let's tax the rich to the point of having little disposable income. Now they don't have the money to buy cars, hire housekeepers, gardeners, contractors, landscapers, or take vacations, get the picture?

Now we have all these would be workers collecting welfare and unemployment. In other words, living off the government, "we the people," to be exact.

Now let's tax the corporations even more.

In an effort to keep their business afloat, they need to pass that extra expense on to their patrons who are now out of work and living off the government. Of course those living off the pittance they get from the government can't afford the products that corporations have to offer, resulting in the corporations making less money, and having lay people off, putting even more people on government assistance. We now have an ever tightening downward economic spiral that has no way out. It's called socialism and I have personally experienced it, and have been trying to avoid anything that looks remotely like it ever since. If you have not experienced living in socialism or communism you may consider what you have heard about Greece.

When people have less money, their charitable giving goes down too. Wouldn't you, as either a Republican or Democrat want to have more money in your pocket to give to the charity of your choice?

I know what the liberals are thinking: You don't have to tax them that much, just enough so that they don't have way too much and I have nothing.

The fact of life is that no one will stand still while you take shots at them. It is human nature to duck, bob, weave and run for cover.


If we look at how our current taxes were originated, we may actually learn from History.


Republican Groups Creating Balance

Young Republicans Organization

Redistribute Wealth

Historically it is the desire to take from the rich that has hurt the poor, and even more so, the middle class, more than anything else. The middle class are taxed too heavily, and are basically responsible for paying for the poor, and it is a direct result of the previous attacks that the little people have made against the rich.

Reviewing the history of taxes may jog your memory. There were originally no permanent taxes, just occasional taxes to support war efforts. In England, during the mid 1800's a permanent tax was thrust upon its citizens, and 1913, an income tax became permanent in the United States with the adoption of the 16th Amendment to the Constitution.

Britain had adopted their permanent taxes with the masses voting in favor of taxing the rich to solve poverty. Before they knew it, they were all paying taxes. Americans were seriously against paying taxes. They had left Britain because of the strangling affects of the taxes and had come to America to experience freedom.

It happened in America the same way it happened in Britain. Taxes were going to be for the rich only, and all the little people voted it in only to have it come back to them. The idea of punishing the rich is nothing new. There have been many tax laws presented to do just that, and they end up trickling down and punishing the middle class. Always!

How do they trickle down? For one thing, as I said. No one stands still while being punched in the face. The rich are smart and they find loopholes, while the upper middle class don't know what to do other than suffer it. That combined with the fact that when the government is never quite satisfied, and after it gets a little hand out, it wants more. Just like a spoiled child. Let's learn from history this time and not repeat this never ending cycle.



Success

Working to be independent, using one's creativity or being an entrepreneur by starting and running a business is the American dream. Nothing can replace the satisfaction of accomplishment, and the Republican party for the most part supports these ideals. The Democrats, on the other hand stymie creativity and arouse helplessness and desperation that always results in anger and resentment. All the unemployment benefits in the world will never give a person true satisfaction and end poverty.



Comments

    0 of 8192 characters used
    Post Comment

    • Ben Freedom profile image

      Benjamin K. Freedom 4 years ago from USA

      Small businesses like yours pay 35% income tax which, I agree, is way too high. Due to loopholes, large corporations, however, pay zero taxes. Is this fair? If you closed all the loopholes, we all could pay 15% across the board. Fair for everyone.

    • tsadjatko profile image

      TSAD 5 years ago from maybe (the guy or girl) next door

      Wonder where Obama got the notion of redistribution of wealth? Most likely from his childhood mentor Frank Davis, avowed communist (with an FBI file) and known pervert. But it definitely goes back at least to 1998.

      http://www.youtube.com/watch?feature=player_embedd...

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      Thank you Angela.

      I agree with you 100%. Giving people money on any level almost always results in the money disappearing, and the hands coming back for more.

      "Give a man a fish and he has food for a day, teach a man to fish and he will heat for a lifetime".

    • Angela Blair profile image

      Angela Blair 5 years ago from Central Texas

      Absolutely "Amen!" Great and insightful Hub. I'm a believer that if we gathered up all the money in the world and re-distributed it evenly among all -- the same people would wind up in the same circumstances. The wealthy would again be wealthy and the poor would again be poor. Seems to me it's all attributable to mind set. How badly a person wants to escape poverty is a huge factor -- voted up -- definitely! Best/Sis

    • Lions Den Media profile image

      Lions Den Media 5 years ago

      Skarlet, I wouldn't look at it as being a weasel running away. Sometimes prudence is the better part of valor...unfortunately I simply lack that gene. :) You merely have to do what you feel comfortable doing.

      Have good weekend.

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      Yes, I think its a good idea too. But, I too have some employee burnout from my past experience. Its one of those things. I love the challenge, But the people and the lawsuits are terrifying, to say the least.

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      @ Lions Den Media. You are correct. I really don't like feeling like the weasel running away. I guess if we all put the pressure on, we would have some power.

      @Mike- Please feel free to e-mail me whatever you think is worth looking into.

      I truly appreciate this thread and the detailed comments.

      Sincerely,

      Skarlet

    • profile image

      Old Poolman 5 years ago

      @Skarlet - Most business operations do have employees, so perhaps it is just me who reached burn out in the last couple years of operation. Just proceed cautiously and know what you are getting into when you hire that first employee. The suggestion of using a temp agency for employees is a good one. Let them be the HR department and you spend your time building the business. I have a feeling you will be very successful.

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      @Poolman (Mike) That is perfectly alright. I found this exchange interesting. As a business operator I am constantly arguing this in my head.

      Thank you very much, I love this thread.

    • profile image

      Old Poolman 5 years ago

      Lions Den Media - Here is a link to a website that helps one determine if hired help is an employee or a contractor. One of the requirements is to be a contractor, they must have their own license and be offering their services to others. Few are willing to even take the risk involved with having your own business license.

      http://www.irs.gov/businesses/small/article/0,,id=...

      Most employees do not understand the risk vs reward system. They have no idea the sacrifices in time and money the business owner spent getting the business rolling. Nor do they care. Many actually resent a business owner making more money than they do, yet the owner assumes 100% of the risk. Banks are not loaning money for start-up business ventures, unless one has sufficient collateral to cover the loan, such as their home. After the business is operating successfully, banks will call and ask if you would like to borrow some money.

      You are correct that helping small business owners would go far toward solving our unemployment and economic crisis. But in reality, the reverse is true. Large business gets tax breaks, stimulus money, and other perks that are not given to small business. It really bugs me when problem solutions are very clear, yet nothing changes to actually solve the problem. Increased taxes are not the solution, but will ultimately make the problem worse.

      @Skarlet - I apologize for using the comment section of your hub for my personal daily rant. I am done now.

    • Lions Den Media profile image

      Lions Den Media 5 years ago

      Hello Old Poolman: Great points. And it is a mine field legally. And one of the problems with the "law" is that it is not clear cut. Ask 10 different CPAs and tax lawyers and you get 20 different answers with 100 various options. The fact is that the "laws" are intended to prevent people from pursuing or challenging the government, because there is always a law that the feds can apply or they will use "legal theory" to support using a law in a specific manner.

      As for the independent contractor issue these people need to sign legal docs stating they understand they are responsible for all payroll and income taxes, they indemnify the general contractor etc. And then like I said, we just have to be prepared to deal with the consequences. Also, obtaining a "legal opinion" as to the legality of one's actions is helpful.

      I agree with you though, it is brutal being a business owner and we put our money and butts on the line every day. The system needs to be reset to pre 1960 levels of regs and laws. Half the existing businesses formed pre-1990 could not be founded today.

      Have a great day.

    • profile image

      Old Poolman 5 years ago

      Lions Den Media - You bring up some excellent points in your comment. If I had it to do over again, I would do exactly what you suggest. I would obtain all of my employees from a temp agency. That way they could handle the HR part of the business. The government has some strict guidelines regarding who is an employee, and who is a contractor. Many in my business have tried declaring all of their employees contractors to avoid the payroll taxes, workers comp and state unemployment insurance, and all the other negative in having employees. Several have been challenged by the Feds and ended up paying fines and back payments on all the above. This actually put some of them out of business as they could not come up with this much money. This happened because "contractors" filed complaints with regulatory agencies regarding on-the-job injuries requiring treatment at ER's or Urgent Care Centers. The "contractors" actually filed workers compensation claims against the owner, and it was quickly discovered there was no insurance. Other cases concerned "Contractors" who did not understand their was no withholding on their pay. They were going to receive a 1099 and be 100% responsible for their own income taxes. When tax time came and they couldn't pay, they filed complaints with the IRS and of course the employer was held liable for not withholding and paying the payroll taxes. This happened to two companies I know of, the had to close their doors but are still liable to the IRS for the payroll taxes they didn't pay.

      Times change, and entrepreneurial minded people need to change with them. Just make sure you truly understand all of the labor and tax laws, then find a legal way around them. There are also private HR firms who will represent small business employers. I would encourage anyone considering hiring employees to do some research and consider hiring one of these firms. They are paid to stay current with the rapidly changing tax and labor laws. You can't operate and grow a business when the majority of your time is spend doing HR functions.

      If I were younger, I would do it again, but I would sure do it differently.

    • Lions Den Media profile image

      Lions Den Media 5 years ago

      Also, if we view power from the perspective of money -- small business employ 60 percent of the workforce (minimum). U.S. GDP is $15 Trillion in which small business is responsible for $9 Trillion. So why are we small business people under the impression that we don't dictate U.S. economic growth and therefore, dictate economic and business policies.

      And if viewed logically, in the long run policies that help small business actually helps big business more than policies directed at helping only certain multinational businesses.

    • Lions Den Media profile image

      Lions Den Media 5 years ago

      Skarlett and Old Poolman -- hello guys!: You raise some valid issues with respect to employees, insurance, HR and excessive regs, laws and the anti-business environment.

      But sole proprietors may not be the solution depending on the business and your model. Perhaps the model can be tweaked. There are various business structures you can use to protect and hold assets. Say for instance, if your company consists of tangible property place those in a separate holding company to protect that from litigation. Us a temp agency to do all of your hiring. If after 90 days you don't like an employee that isn't your issue. This way you can vet the worker.

      If possible see if you can turn the employee into a independent contractor, which of course alleviates any employee/employer issues.

      The bottom line is that we as American entrepreneurs cannot simply give up because of government regs, laws and other constraints. And since it is the start-up and small companies that are responsible for generating 70 to 80 percent of all new jobs created -- then the government should be bowing to us NOT GM, GE, ADM or any of the other multinationals.

      My simple point is we need to change the laws and fight, instead of packing out bags and doing nothing. In fact I believe it is that mindset that placed us all in this predicament. The simple fact is that we cannot continue, as business owners/entrepreneurs to absorb this legislative assault. I know I commit at least one felony a day and don't even realize it, especially given the fact that government has listed CO2 as a toxin. Hence, if the most basic of human functions are deemed hazardous to man -- then there exists zero rational sane thought in government any longer and it is up to us to rectify the situation.

      As you can see you've touched a nerve!! :) :) Have a great day. And Mike -- $127K for a snake bite...that is insane. Which begs the question -- why is it alright to charge $127,000 for a snake bite, but its price gouging and unfair for an oil company to charge $4.00/gal, becaue they are making "excessive" profits (and I have no idea what an excessive profits means)? Because that is about 31,750 gallons of gas. At 20 miles/gal = 635,000 miles at an average driving distance of 20,000 miles per year you bought approximately 31.75 years worth of gas.

      Have a great guys!

    • profile image

      Old Poolman 5 years ago

      Skarlet - Part of the reason for the high unemployment today is employers fear of the unknown in the future. We still have no idea what Obamacare is going to cost, and we all know that taxes must go up because the country is flat broke and heavily indebted.

      The business environment is not friendly toward employers today. For one thing, you are automatically put into the rich and greedy category if you keep even one dime of your profits. Most really good employees are already working for someone else. Hiring is a nightmare that can get you into serious trouble if you interview someone but don't give them the job. You have a good chance of getting sued for discrimination. Terminating a poor employee may also get you a lawsuit. You can only hope you did everything exactly right and documented everything. The deck is truly stacked in favor of the employee with today's laws. Why do you suppose all large companies have huge HR departments?

      My advice would be to just do it yourself or forget it. After you hire your first employee your problems have just doubled. I was fortunate enough to have some really good employees, and a few mediocre employees, but I loved each and every one of them. I was able to convince the person who bought my company to hire every one of them and he did.

      I am going to send you some info via private email.

      Mike

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      @Poolman- The sole Proprietor sounds better and better. I just heard of a pool business in Fl. at a meeting today, (not sure of the name)running over 900 pools and working 24/7. The first thing I thought of was, what about all the workers comp.

      It is really sad. I'll bet that snake bite kept you up at night.

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      Thank you very much for your comment Poolman. It really has me thinking. Employees really scare me, and I have been on the fence about it. My entrepreneur side want to go all out, and my fear of taxes and insurance, two of my pet peeves, are telling me to be safe rather than sorry. I am so glad I found you here. :)

    • profile image

      Old Poolman 5 years ago

      Skarlet - I finally gave up and sold my business. The final straw was due to a workers comp claim. One of my employees was bitten on the finger by a rattlesnake. This of course required a stay in the hospital and several vials of the very expensive anti-venom. The final bill for this accident was slightly over $127,000 that they did pay. This is the one and only claim I ever filed in over 20 years of being in business. They of course cancelled my policy, and to stay in business I was forced to accept a High Risk Policy with another insurance carrier, at three times the cost. Now had this accident been my fault due to faulty equipment or something, I could live with that. But rattlesnake bites are not uncommon here in Arizona for those who work outside. Fortunately, the employee healed up fine with no residual affects. With the steadily increasing costs for gasoline, insurance, medical insurance, taxes, and supplies, there is not enough profit left to make it worth all the headaches and long hours. It is nearly impossible to stay competitive and pass even a small part of these rising costs on to the consumer. The sole-proprietor is not required to pay workers comp, state unemployment, dollar for dollar matching on SS, or even liability insurance unless he wants to. Having employees adds a huge amount of expense to any company. It was time for me to retire anyhow, but if I had it to do over again, I would have just operated as a sole-proprietor. Most employees have no idea how much it really costs to have them on the payroll. But how would they unless they have been an employer?

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      Yes. Actually, you are right. I was just having a conversation about whether or not to expand. I really would like to, but, I am just disgusted. Between regulations, being taxed to high heaven for everything on earth, workers comp. ect. I don't know if its worth it when I consider what is left at the end of the day.

      Here in liberal California, we have a preview of big government hell.

    • WeeDavie profile image

      WeeDavie 5 years ago

      I feel like most of your opinion comes from running businesses.

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      Thank you. Whenever someone speaks facts that are outside of the liberal mainstream box, they blame fox news. They demonize Fox News because its the only major channel that will show a conservative view point.

      Once MSNBC, and NBC has everyone brainwashed into thinking that Fox News is evil,all tey have to do to someone who says something that opposes big government, ect, All they have to do is say is, "you watch Fox News," and that immediately takes credibility away from their point.

      As you know, my point of view, for the most part, comes from my education, having lived in socialist countries, ect.

      My liberal workers here in California always bring up Fox, because its the only thing they can throw around. When I speak of being in Cuba, they just look down and change the subject.

    • WeeDavie profile image

      WeeDavie 5 years ago

      Great hub again.

      taxshelters? Not sure

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      Thank you Poolman and breakfastpop I always enjoy your level headed comments.

      @seeker7- my father is from Scotland and I feel for you. The situation you are facing is one that this country is now welcoming with open arms. The original "reasons" for the way Scotland is, was to help the needy, and it has turned into a truly unfair overtaxed trap for hard working people like yourself. One of the problems with this type of system is that people from other countries also know how to work the system, and with that large government structure, there are too many ways for the shifty to take advantage of it, and pick the pockets of honest people who would just like to provide for their families. I have not been to the UK is years, but I still have the memory of those "jokers" as you say,running a muck, and the hard working people resenting it to no end.

      Thank you also Lions Den Media. I appreciate your comment

      Dr Billy Kid- you are right. It makes me wonder how far it will go.

      taxshelters and Jed Fisher :)

    • Lions Den Media profile image

      Lions Den Media 5 years ago

      Nice hub Skarlet. I enjoy reading rational articles based on reality. Nobody sits around hoping they are poor. And what is the first complaint of some poor average joe that wins the lottery -- The first complaint is -- "that's a lot of taxes"! Thank you for instilling sanity.

    • Seeker7 profile image

      Helen Murphy Howell 5 years ago from Fife, Scotland

      Very interesting hub.

      I'm from Scotland and I can vouch for the fact that up until recently, ( I was made redundant for the second time in 5 years), I worked full time since leaving school. But it really pissed me off to get my payslip at the end of the month and see the astronomical amount taken off in tax! On making my way home from work, it was common to meet some good for nothing that I knew from school, who had never worked a day in their life - and still don't - driving around in a great car, with money in their pocket and not a care in the world. That angers me beyond belief! I think in the UK at least, the amount of money that would be saved by catching these jokers would make a huge contribution to helping genuine men and women find a decent job and to helping genuine poverty stricken families. Government after Government promises to stop payments to these wasters in society, but they are still walking around sticking their fingers up to the workers and the Governments! I'm not against taxes and I think taxes such as 'Death Duties' on rich families should be done away it. In addition, if I was wealthy and had earned it through hard work, then I would defiantely object to having my money go to support the wasters and lazy good for nothings that continue to get paid to sit on their backsides!

      The only issue I am against is the appalling bonuses that have been handed out to MD's of banks etc., especially when the country is in full blown recession.

      If someone has worked hard and become wealthy, then they deserve to be able to enjoy their hard earned cash and not be taxed to the hilt. But I do object to £7 million +++ given to some jerk on top of his wage just because he happens to be an MD.

      Anyway, sorry for the rant. But I did enjoy your hub and it got me started on a sore point!! LOL! Voted up.

    • Dr Billy Kidd profile image

      Dr Billy Kidd 5 years ago from Sydney, Australia

      What is interesting about this whole argument is that it's about convictions, not reality. The conviction is that hard work should pay off. In reality, the wealthy have doubled their incomes and property hodings in the last 30 years. Their work did indeed pay off. On the other hand, the rest of us got nothing but stagnant wages, even while we put out twice as much work per man hour compared to 30 years ago. Our work did not pay off, yet we argue that the rich are entitled to more. Go figure?

    • texshelters profile image

      texshelters 5 years ago from Mesa, Arizona

      Indubitably! But my dear wordsmith, don't you know that you don't tax job creators in the midst of a recession lest ye old job creators stop doing their job creating? Haven't you been watching your requisite 4 hours of Fox News daily or listening to Sean Hannity, true patriot?

      Don't tell me you've been reading that commie Krugman who seems to only care for people and not profit!

      Peace,

      Tex Shelters

    • breakfastpop profile image

      breakfastpop 5 years ago

      This is one topic that drives me out of my mind. You could take away every cent that the 1% earns and it won't do a thing to solve our problems. In fact if you really want to destroy our economy tax the successful people to death and just watch and see what happens. They'll take their jobs and their money and their lives elsewhere. You can count on it. Up and awesome.

    • profile image

      Old Poolman 5 years ago

      A well written hub on a highly controversial subject. You will notice very little is ever said or written about the reported 47% who pay "ZERO" tax? Nope, all we hear now is get more from the so called rich. Our tax codes are far from fair. Over the years certain individuals and corporations have been able to buy themselves, and others just like them, some really great deductions. Think how great it would be if everyone just paid the exact same percentage. At a tax rate of say 10%, The guy earning $1,000,000 per year would obviously pay more tax than someone earning $50,000 per year. There would be no allowable deductions that favor one taxpayer over another taxpayer, just pay your 10% and like it. It would be so simple a 4th grader could fill out the tax forms, and people could give all that money we now pay tax preparation companies to charity. Ahh, it is nice to dream.

    • Jed Fisher profile image

      Jed Fisher 5 years ago from Oklahoma

      Dwight D. Eisenhower.

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      Thank you Hubert. I am glad you liked it

    • profile image

      Hubert Williams 5 years ago

      Very good article, I agree 100%.

    • Skarlet profile image
      Author

      Skarlet 5 years ago from California

      Awe, thank you teaches12345. I appreciate your support.

    • teaches12345 profile image

      Dianna Mendez 5 years ago

      Excellent coverage on this topic. It is puzzling at how the government thinks it can solve our economic problems by taxing. They are shrinking our income, our rights and dignity. Voted up, up!