If you think you earn your money, you are wrong.
As I have been watching the debates over the debt ceiling, the fiscal cliff, and taxation I am reminded of one assumption about money the government makes (often unconsciously) that those of us who think we should be allowed to keep the money we have earned often forget: It’s not your money, it belongs to the government. The government prints it, backs it by their “full faith and credit”, and decides how much will be circulating in the economy at any given time.
If all money belongs to the government, then you are not entitled to keep it. The government gets to decide how much to give you. Those who wish to increase the marginal tax rate to 91% believe you are taking too much of the government’s money. In other words, government spending on individuals who make more than $250,000 is too great. Whether the government spends their money on wages or social welfare programs is irrelevant, it is all income derived from the generosity of the government. By not taxing your earned income at 100%, the government is being very generous with their spending on you.
Perhaps those of us who believe we are earning our money are delusional.
Holly A. Bell is a business and economics professor in the University of Alaska system and an experienced author, analyst, manager, and blogger who lives in the Mat-Su Valley of Alaska. You can visit her website at www.professorhollybell.com or follow her on Twitter at @HollyBell8
91%? Really, Dr. Bell? No one is credibly arguing for a 91% marginal tax rate (and yes, I saw Krugman’s article – I said credibly arguing). Nothing like a little hyperbole to start off the morning.
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You will notice that Krugman makes The Economist\’s list of most influential economists: http://www.economist.com/blogs/freeexchange/2011/…
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Traci: Remarkably Krugman is considered a very influential economist and his ideas are taken seriously (and he genuinely believes what he says). He IS considered a credible source. Of course he also throws things like this out so an 80% marginal tax rate seems like a compromise.
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Why is it such a strange idea that the government controls money? If you don’t like it then barter or use bitcoins or whatever.
A stable currency and a regulated market are valuable to me, so I trade using USD (as most americans do).
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At least the French only want 75% Krugman is a Keynesian idiot!
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P’fessor Holly, are you just jerking everybody’s chain to get our blood pressure up? Well the stinkin’ thinkin’ of Prez BO, Krugman and all his aparatchiks are certainly enough to do that.
>:-/
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All, don\’t get too hung up on the 91% figure, the theory holds true whether the marginal tax rate is 35% or 39%
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