Taxes: Grab your wallet!

Today's Parade Magazine, the Sunday paper insert, included an insert titled "How Much Would You Pay in Taxes?" (linked here). Here's the table copied out of Parade.

	Obama	McCain
If you make...	you'd save...	you'd save...
less than $19,000	$567	$21
$19,000-$37,600	$892	$118
$37,600-$66,400	$1118	$325
$66,400-$111,600	$1264	$994
$111,600-$161,000	$2135	$2584
$161,000-$227,000	$2796	$4437
If you're in the top 5% of earners...	you'd pay an extra...	you'd save...
$227,000-$603,400	$121	$8159
$603,400-$2.87 million	$93,709	$48,862
more than $2.87 million	$542,882	$290,708

A few things to note. Both men vow a reduction of income tax if you earn less than $225,000. Again, this is income tax, what you have taken away from you from the government of what you earned. We didn't have an income tax until the 1860's and then it was 3%.

John McCain would like to reduce the taxes of everyone, giving the larger tax breaks to those who not only make more money, but to those who pay significantly more taxes! Barack Obama would like to increase the tax burden upon those who already live in the ridiculously higher tax brackets.

Many in the heart of the first half of the table think to themselves, "Yeah! The rich should pay more!" My question in return is "Why?"

Consider the man who makes $2.87 million. He lives in the 35% tax bracket. One of every three dollars he earns is taken by the government. His annual tax burden? $983,097! I don't care that he still clears nearly $1.9 million, having one-third of your income taken is akin to robbery.

Let's return to Senator Obama's desire. Let's slap him with an additional tax burden of $543,882. That takes that "millionaire" to $1,526,979 in taxes paid and he gets to keep $1,343,021! He pays more in taxes than he gets to take home. Senator Obama wants to increase the tax burden to 50% in some cases!

You may still be thinking, "He's still making a million and a half more than what I make." First, what a tragedy that we would revel to see our fellow man gouged so. Second, what do the wealthy generally do with their money? Most of them reinvest it. What does that mean? More money available for companies to open new markets, do more research, or perhaps reduce prices or increase wages. In other words, the little man, you and I, are blessed when the wealthy invest their money.

Another thing the wealthy do with their money is give. Philanthropers bless our communities with schools and hospitals, parks and theaters. They give to orphanages and missions. They give to churches and ministries. The wealthy have blessed America greatly. Tax them higher and there will be fewer dollars going to charitable organizations.

I've said this before; it's not a zero-sum game. If the rich have money, it does not mean that they have it at the expense of others. Wealth creates wealth. America has been blessed by its wealth. Our poor would be considered among the wealthy in some nations. Nearly anybody who is willing to work can find shelter. That's just the way it is. Goods and services in America are ridiculously affordable.

With a larger tax burden, there will be less money to invest and it will stunt growth in the economy. Less money in the hands of the wealthy equals fewer jobs and fewer raises. Most folks just don't understand that if the folks in the upper tiers get thumped, it will roll down hill and we're going to get thumped, too.

Under McCain's plan, the $2.87 million dollar guy will still be paying $692,389. You think that's a good deal?

The more we want the government to do for us, the more we're going to pay (generally through the sinus cavities), and the poorer the quality of the product we'll get in return. You can bank on that! Er, maybe you'd better not.