If you watched the debate last night you probably are well acquainted with Joe the Plumber. Joe was contemplating avoiding buying a business that made $280k per year due to Obama's tax increases for citizens making over $250k.
I thought I would introduce some math to Joe.
As I understand it:
If the profit, not the receivables were the max, $280,000, the portion above $250k would be at the higher tax rate. $36%, as opposed to 33%. (30k x.03) means that Joe will be paying $900 more per year than he would if Obama doesn't get elected.
If Joe makes his voting decision based on 0.32% of his income he is ill informed. If Joe decides not to buy a $280K profitable business based on $900, he is needs to learn more math.
Personally, I think Joe either is buying a plumbing empire, or he has mixed up his receivables with his profit. Meaning that Joe most likely will get a tax CUT!
Now, to address the larger issue, wealth redistribution, I also believe that their need to be limits on wealth redistribution. However, I also feel that the American Dream is something special here in the United States that doesn't not exist elsewhere. I really fail to see how we can encourage Joe without government programs that help people make it to their Dream.
It hardly makes sense to raise money to fund the American Dream by taxing the... people who need the programs to make it to the American Dream. Joe made it where he is today on the back of this great nation. Now, after he is doing better than most of America, is his turn to pay back that nation for the service it has rendered him.
Probably Recievables Vs Profit
By Frank (not verified)I think the other thing that is missing in this is that if Joe went ahead and bought that plumbing business he'd figure out pretty quickly that there are a million and one ways of making sure he's not taxed on that full $250,000, profit (though I think it's probably recievables). I think the most important person for Joe to choose is his accountant, not president.