|Lesson 1: Taxing the Rich Hurts the Poor
Taxing the rich almost never hurts the rich. It hurts the people who are trying to get rich. Have
you ever known anyone who turned down a raise, a promotion, or more work hours? It is often for
the same reason: they don't want to want to work more or take more responsibility for the same
pay, sometimes less pay. That is what can happen when moving into a higher income bracket
means moving into a higher tax bracket. You don't just pay more in taxes, you pay a higher tax
rate. The steeper the tax ladder, the steeper the climb to success.
The rich are usually the people least affected by taxes on the rich. They have lawyers and
lobbyists and loop-holes to get around their taxes. It makes sense that some politicians who want
to tax the rich are often the same ones who never had to climb that ladder, and who don't pay
income tax. The Kennedys, Rockerfellers, Gores and Chafees inherited their money. John Kerry
and John McCain married theirs.
The fairest system for all Americans is this: You pay the same amount per dollar, no matter how
many dollars you make. That is called a flat tax, and it flattens your climb to the top.
Tomorrow's lesson: YOU are paying the bill.