Over the past two weeks, there's been this continual chatter about the President's concept of increased taxes on the wealthy....to cover the cost requirements of the government. Here's the prospective you ought to think about.
You line up one hundred guys who each make precisely $10 million a year from their company.....all precisely at the same level....all facing an imaginary level of say 35% taxation (the President can use any number he desires). So you would sit there and imagine that roughly $3.5 million of their income will come to the IRS. The plain truth is that you might have three guys who hand over the $3.5 million, but the other 97 guys will hand over anywhere from $3 million, all the way down to zero dollars for taxation.
Each guy hires some taxation expert. One guy will create a foundation where he tosses half of the ten million toward the charity foundation. He'll pay almost no taxes. On the hidden side....his trips to the foundation headquarters in San Diego are always covered by the foundation's tangled empire.....same for the hotel stay...the food....etc.
Another guy will move quietly the majority of his ten million to an off-shore bank....paying the one-time tax on it, and then letting the money disappear into various banks in Thailand, the Bahamas, or Africa.
A dozen guys will buy up fake farm land in Ohio, and pretend they actually farm land....when they don't. Some guy will plant two thousand Oak trees on his 500 acres and take various tax credits via both the state and the federal government.
So when the President chats about fairness or how taxes need to be increased against the evil rich people.....he really has no idea how much they currently pay, how they are structured to beat his tax efforts, or what he might get out of the deal in the end. It's sad in a way.....a massive media device is working to convince you how this will all work. But they haven't the slightest idea of how one hundred millionaires think. And don't even bother asking these guys how they got rich or how they intend to stay rich....they'll just grin.