Alfred Holzheu – online and verbose – The Main Pontifications page

Tax the Rich?

Mar 17, 2009 at 1:10 PM

Alfred Holzheu

Does anyone understand that as individuals we live in a zero sum game to a certain degree. If Rich people are rich because they presumably own businesses (I am excluding inherited wealth), and you tax them, what do you expect to get? I know that I as a businessman will try and compensate by increasing prices to make up for the lost income, lay people off to make up for the lost income, or spend less on new business infrastructure (ie. job making) to make up for lost income, etc. There are no alternatives. Keeping a company healthy is the same as a farmer taking care of his crops, either I feed and nurture the business or it fails (and it might anyway, luck does not always run in your favor). And that requires saving money in the good times to make through the winters. Tax that money away, spend it instead of investing it, and you get what you pay for. There can be no good in bringing us all down to the least common denominator. If you have ever played a sport, you know that to get better you have to "play up", but without that motivation, that carrot you get mediocrity. Hmm, seems like that is what we are seeing now. Many individuals and/or immigrant have succeeded in building this country because if they did not like what they had, they could get together with others and presumably do it better themselves. Tax laws that encourage wealth creation and "rich" people are the solution not the problem.

Article originally appeared on Alfred Holzheu – online and verbose (http://www.holzheu.com/).

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