Leaders in the United States have made the point of asking for ‘shared sacrifice’ but the reality of this great idea is flawed to such an extent it looks as if the burden of a nation is falling on those in the middle of society, those already struggling to make ends meet and cutting costs just to survive.
The mega-rich have been left untouched, Warren Buffet has also said that ‘when they asked for shared sacrifice, they spared me’.
The reality is the mega-rich continue to get tax breaks while the middle and lower classes fight for the country in the middle-east and struggle to survive daily respectively.
From the outside it would appear that the legislators in Washington are trying to protect the super-rich, as if they were some kind of ‘endangered species’.
There is no running from the fact that if you earn money from a job, the income tax that has to be paid far exceeds the tax of the super-rich. The super-rich are those that make money from money and they are paying a lower percentage.
The problem is that the rich do pay income taxes at 15% on most of their earnings but they do not pay any amount for payroll taxes. Compare this to the average man, the 9 to 5 clock in clock out worker, who pays 15-25% for their income tax and then in addition has to deal with payroll taxes.
Higher taxed never scared of people investing to make money
Mr Buffet has said that during 1980 and 2000 approximately 40 million jobs were created when the taxes where higher, which no doubt helped economies since people were employed and businesses were strong and resilient. He then went on to say that after 2000 figures show that lower taxes and lower job creation go hand in hand.
“People invest to make money, and potential taxes have never scared them off” said Mr Buffet in an article in the New York Times.