By weaving a fantastic fairy tale. Over the past 30 years, Republicans have convinced the public that they should be grateful to the wealthy for thier jobs, proclaiming that without a rich investor there would be no jobs. But that could not be further from the truth. Without workers there would be no wealthy. They claim expiration of a tax cut on the wealthiest 2% would be a job killer. Will Republicans hide their money in their mattresses after the tax increase or will they continue seeking the highest investment returns possible?
I'll tell you about the injustice of the American tax system. The working class pays more in taxes than the investment class.
Workers pay a marginal rate of 40.3% (25% federal, 15.3% Social Security and Medicare)
The wealthy investment class pays a marginal rate of 15% (15% capital gains taxes, near 0% Social Security and Medicare).
Why are workers taxed at nearly triple the rate of investors?
There are 3 ways for a society to create wealth:
1. Sell natural resources, such as animal, vegetable, and mineral
2. Labor
3. Intellectual and creative invention
There is a 4th way for an INDIVIDUAL to create wealth: Exploit others in #1-3.
Of all these, #4 gets treated most favorably by our tax system. Investors create nothing of value.
The wealthy cannot make money off their investments without someone to raise the livestock, pick the crops, or mine the copper. They cannot make money without workers. Their investments will not grow without inventors designing products or writing movie scripts.