The Effects Of Taxing The Rich

Draining the rich of their money will not help those who are poverty stricken. It could cause the opposite of the intended effect (more equal income) and cause a greater amount of poverty and less chances to earn a living. A wealthy person is generally thought of making more than $300,000 a year and usually has stock, real estate, or both. In developed countries, such as the United States, “income inequality has increased since the 1980s” (Woo 5). A large amount of people argue that a system such as socialism could fix that inequality. Socialism is a political and economic theory that centralizes the government and distributes wealth and jobs in order to form a social society (Evangelopoulos). Many economists and politicians have debated the

Those who advocate for higher taxes argue that the money taken from the rich could be put to uses like healthcare and education. The side that is against higher taxes debates that the long term effects of taxing the rich could cause a tremendous amount of damage, particularly with losing jobs. The rich should not be taxed more because it takes away the right to earn, and keep, a considerable amount of money and it can both damage the economy and lead to socialism which in turn has a high probability of leading to widespread poverty and a corrupt government. Taxing the rich negatively impacts the economy of a country in a plethora of ways. Taxing of the rich and businesses coincide because many of those who are wealthy own a business. Many other people own businesses as well, even though they are not considered wealthy. There are currently 27.1 million small businesses in the United States and around 58.6 million people are employed by these smaller businesses which is about 48% of America’s workforce (SBA Off. of Advocacy 1). That is almost half of America’s working force. If taxes on businesses were to go up, many of the self owned businesses would shut down leaving many without jobs. When the wealthy and these employer businesses are taxed in excess, they tend to cut jobs

A centralized government will tax the rich and businesses into the ground so they can get the public work they seek where the workforce owns their own jobs. As stated before, most of “America’s middle class is employed by both small and larger businesses that give them adequate pay and benefits” (Brunello 299). If the taxes on businesses increase, a large number of people within the dwindling middle class will lose their jobs which further increases the income difference people are trying to solve by taxing the rich. Governments that tax, and subsequently abolish, businesses will force certain jobs upon people. As stated previously, taxing the wealthy is a fundamental ideal of socialism, so there is a high probability that a government could continue this idea and give “public” jobs to people. Even if they did not ask for a certain job, they are given one because they have been unemployed due to the higher taxes on businesses. The job they are given could be very poor, like a septic tank cleaner. People have a right to both their jobs and their money. While taxes on the rich should not be light, the rich should be able to keep at least two thirds of their own money. Otherwise they will be decentivized to become rich. If people do not want to become rich then there would be a massive shortage of quality jobs. As stated before, the rich employ many