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How does a high tax rate on businesses and the wealthy help America?

The top tax rate was 70% during the Carter Presidency and there was absolutely nothing positive that came of it that I can see. The business tax rate is 38%, the highest in the world right now and all I hear is whining about businesses going elsewhere.
Those few of you who believe in raising the taxes on this group (do you really understand what happens when you raise taxes on anyone?)
Please explain why it would be positive now if we did the same?

Here is a very interesting link showing tax rates and deductions for corporations and individuals from '07 to '11
You might notice the many deductions (loopholes) that we regular people have.
Link text

Answer Question
 
itsmesteph11

Asked by itsmesteph11 at 10:51 AM on Apr. 11, 2011 in Politics & Current Events

Level 39 (113,405 Credits)
Answers (33)
  • If everyone in the USA had to give 1% of their yearly earnings to the government with no return, do you know how much that would be to the wealthy and still be only 1%?! it would be crazy!! The lower income families would have a harder time giving up their penny where at a penny to someone who is better off wouldn't be so hard.
    Anonymous

    Answer by Anonymous at 10:57 AM on Apr. 11, 2011

  • Very few corp pay a high percentage of taxes. Most pay very little by the time they are through

    Higher taxes on the wealthy will help pay down the debt during a time when the middle and working class, can't afford any more decreases in income or benefits. Wealthy people, when given tax decreases, don't tend to spend that money to get the economy moving, they hold on to it.
    Do you remember the Bush tax cuts? He promised that those cuts would drop the unemployment rate. It didn't.

    “economic royalists,” lordly men who take “into their own hands an almost complete control over other people’s property, other people’s money, other people’s labor—other people’s lives.” FDR
    adnilm

    Answer by adnilm at 10:58 AM on Apr. 11, 2011

  • The tax rate only counts if it's actually paid- Loopholes and entitlements for businesses, the rich and the poor are killing this country. Middle Class jobs have been desecrated and loopholes/entitlements for others have risen. The system is unsustainable. Unless we financially penalize those companies that avoid paying their corp taxes, the practice will continue and the US middle class tax base (AKA jobs) will be gone forever-

    Sisteract

    Answer by Sisteract at 10:59 AM on Apr. 11, 2011

  • Most corps are actually family owned and are basically small businesses with family members as board members. We dealt with a lot of these when I was a trust officer. It is much easier to pass on a family owned business if it is a corp than if it is a sole proprietorship. BUT, they pay for it tax wise.

    Sisteract is right, the rate only applies to those that actually PAY. This goes for individuals and corps alike. We would be in much better shape if they simply closed the loopholes and ended the credts.......for EVERYONE.
    yourspecialkid

    Answer by yourspecialkid at 11:08 AM on Apr. 11, 2011

  • I will just tell you what happen to us. We have to pay 59% in taxes in California. So what we did was my husband quit his job and we moved.
    We could not donate money to the charities we like anymore, we had to charge all our taxes, it drain us dry!!!!!!!!!!!!!!!

    Now that we left CA we can give again and help our kids.

    So stop STEALING FROM HARD WORKING PEOPLE!!

    The more you tax a Company, the less they will have for their workers, some will lose their jobs, is that what you want?
    gammie

    Answer by gammie at 11:21 AM on Apr. 11, 2011

  • It helps no one. Will the middle and lower income families have more money if the wealthy had less? Nope. Those who have become wealthy over their lifetime (as opposed to an inheritance) earned it through hard work. They will not sit back silently and just pay higher taxes. They have the option of closing up shop and moving it somewhere less expensive. At best they'd tighten up their belts, which could mean laying off employees and working the remaining ones harder. Stupid and wealthy rarely spend much time together. The wealthy will continue to keep the same amount of money. Maybe they don't buy that luxury car. Guess what someone is working to make that car. They don't buy that outfit. Someone is working in that retail store. It affects everyone which seems to be ignored.
    sopranomommy

    Answer by sopranomommy at 11:23 AM on Apr. 11, 2011

  • When we were taxed more we simply gave less to charity. I am one of the top 1 percent that is hated so much by Democrats. We don't mind paying taxes if we felt the Gov wasn't going to simply squander it on waste. I would gladly hand over more of my money if it meant the debt would be paid down and Gov was going to shrink. It won't happen so why on Earth should we give anymore than we do now? When the Bush tax cuts were put in place we took that money and gave it to a charity in our community. They do more to help people than the Gov ever will.

    We could take every single wealthy persons entire income for a year and it wouldn't pay down the debt Congress would probably give themselves a pay raise and find a way to spend it. The issue isn't a lack of funds it is irresponsible spending. Our Congress is like a 13 year old with their parents credit card.
    Anonymous

    Answer by Anonymous at 11:34 AM on Apr. 11, 2011

  • Those who have become wealthy over their lifetime (as opposed to an inheritance) earned it through hard work.


     For the truly wealthy (mega millions/yr +), you need to do a little research on how much of that $$$ is earned via hard work VS inheritance. The legally untouchable wealth is for the most part passed down- Think Paris Hilton-


    Tax codes need to be reformed and simplified.

    Sisteract

    Answer by Sisteract at 11:35 AM on Apr. 11, 2011

  • Sopranomommy you are so right but people are brain washed to hate the so called wealthy they just can't stop and think, they don't or can't spend in the stores they will close down, people will lose their jobs.!!
    People who have money work their ASS OFF seven days a week and now you want some of their money? "You are a thief"

    You are a arrogant and very stupid to think you should get something for nothing.

    When my family was poor my dad work two to three jobs, never ever did he ask the government for help. And paid cash for medical visit.
    I just hate the new kind of Americans, they expect the Government to do everything for them. You are the reason our country is going down. Hard working people made this country great, not your kind of people, you would of died in the desert, waiting for someone to bring you water.



    gammie

    Answer by gammie at 11:37 AM on Apr. 11, 2011

  • When you see the tax loopholes and tax shelters that help the very wealthy and the big corporations, how can you say that is fair and how can you justify your objection to taxing the Fat Cats and the rich people in our country? They are screwing our country and eliminating the middle class. Soon there will be only the very rich and the poor. You might think you have it made....but some day you might be very surprised and shocked.
    minnesotanice

    Answer by minnesotanice at 11:41 AM on Apr. 11, 2011

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