The Rich, Taxes, and Government Debt

C.M. Phippen

I recently came across a genuinely bitter, angry liberal who was absolutely convinced that the only way to get us out of our debt mess of $14.26 trillion was simply to tax the rich and large corporations so they pay their “fair share!” (Just curious, but what is it about “large” corporations that makes them inherently evil, while “small” corporations are apparently acceptable. I’m wondering if the disdain also applies to a company that makes huge profits while employing very few people – does it fall into the category of “large” and bad or “small” and still good?) Anyway, it’s about time that the Michael Moore logic of there being enough money in this country to pay off our debt, it just needs to be redistributed to the people who didn’t earn it, needs to be put to rest.

Interestingly enough, Walter Williams discusses the economics of such a strategy in an article today.

Let me lay out the basics:
*If we were to tax every household in the US making over $250,000 a year at a rate of 100% on the amount exceeding that $250,000, we would bring in $1.4 trillion. (Better yet, if we were to take 100% of everything those greedy bastards earn, it would bring in $1.97 trillion – that’s what you get for being more productive than the solid citizen making $249,999!)
*If we were to take the profits of every Fortune 500 company, that would amount to another $400 billion.
*If we were to confiscate the entire net worth of all 400 billionaires in the US (who do they think they are owning businesses, homes, and jewelry anyway? Those things should only be owned by the poor; oh yeah, that home thing for the poor didn’t work out so well . . . ), that would equal $1.3 trillion.

The grand total we will have raised would be $3.67 trillion, which will run our government for a whopping 9 months or so! Now that we have all the money of the rich our debt problem will surely be solved, won’t it? Oh, we still will have a debt of $14.26 trillion and no way to fund anymore government programs because those who know how to run businesses efficiently and productively would have just been forcefully dissuaded from doing so, in the US anyway? Uh oh. Any better suggestions out there?

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