In the United States, the more income you make, the higher percentage of income tax you have to pay. Those who make more money not only pay more dollars in income tax, but also a higher percentage. And that's about to get much worse.

To pay for all the new spending, the President and congress are proposing to just increase taxes on the greedy rich people. The proposal is that everyone who makes $250,000 start paying more taxes. Adding all the proposed tax increases for healthcare and the other initiatives, the tax rate for the rich could rise to 60-70%. So, who is considered "rich?" 25% of Americans say you're rich if your annual income is over $500,000; 20% say the "rich" are those who make $250,000 to 500,000; 13% say it's $151,000 to $250,000; 18% say the "rich" make $76,000 to $150,000; 20% say we should increase the tax rates for everyone who makes over $76,000.

This sounds like an easy way out--just have the rich people pay for all our free stuff. But if you tax the rich to death, then who's going to pay for it? According to the Forbes list, there are 30% fewer billionaires this year than last. The group has lost a staggering $2 trillion. Remember, they are the ones running the businesses that provide our jobs. So, don't hate the rich too much, because when they're gone, then we've got to pay for our own stuff.

You can't make the poor rich by making the rich poor. (In other words, "redistribution of wealth.")

The only "fair" or "reasonable" tax is a flat rate tax. A Congressional Budget Office study showed that no matter how high you raise taxes, the actual income to the government is always about 18%, because the higher you raise taxes on the rich, and the lower the rate for the rest, the fewer dollars actually come in. A flat tax would actually bring in more revenue. Russia tried it and it worked. The USA won't try it because it sounds bad to have the average person pay the same rate as the "greedy rich people."

Glenn Beck recently compared the "progressive tax" to "progressive pricing."

Example: What if the price you had to pay for a movie ticket were tied to your income, just like your rate of income tax is tied to how much you make. (The example shown below reflects the actual percentage increase in the tax code by income group.)

  • If you make $45,000, then your movie ticket costs you $10.50.
  • If you make $67,900 to $137,000, you would pay $17.50.
  • If you make $137,050 to $208,050, you pay $19.60.
  • If you make 208,050 to 372,950, the movie will cost you $20.10.
  • If you make $16,700, your movie only costs $7.
  • And if you make less than $16,700, then you wouldn't pay anything. (Everyone else will cover the cost of your ticket for you.)

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