Tuesday, May 6, 2014
Even Millionaires Think The Rich Should Pay Higher Taxes
http://www.huffingtonpost.com/2014/05/06/millionaires-taxes-survey_n_5272647.html. DUE 12 MAY 2014. Where do the rich hold most of their wealth? (see graph) Why do the rich think they should pay more taxes? What should be done to lessen the inequality of wealth in the United States?
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The rich hold most of their wealth in equities. According to the pie chart, 45% of the rich's assets lie in equities and next most important is surprisingly income. You would think that for the rich, that would be the most liquid part of one's assets. Guess not! Anyway. For the good of the economy, yes I do think the rich should pay more taxes, but sometimes it appears difficult to drop your own ego for the sake of 30 other people less fortunate that need help more than you. Financially, I can understand why the rich are against taxes, but in theory, it makes more sense to give back. Taxes are almost always the most efficient ways to reduce inequality of wealth. This tax revenue goes to the government and is returned to the poor in the form of government transfers. Both taxes and transfers as we know are parts of fiscal policy. We also know that while monetary policy lies in the hands of the Federal Reserve, fiscal policy is the responsibility of Congress. Therefore, the only way to bring fiscal policy into action is to get Congress to a place of complete agreement. To come to agreement, there needs to be some serious discussion to get to a place of understanding among Congressmen. If they put their egos and political standings behind and just talked business, maybe we would one get the place we want to be and lower in the income inequality gap.
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ReplyDeletetoo many typos to keep #sorrynotsorry #senioritis
DeleteThe rich hold the majority of their wealth (45%) in equities. Fixed income is the next largest category at holding 17% of their wealth. According to CNBC's Millionaire Survey results, 51% of American millions believe that the current level of inequality has become a "major problem." As a consequence, two-thirds of these millionaires also advocated higher taxes on the wealthy and a higher minimum wage. I like this two-third proportion of the wealthy! Although I can see why the wealthy don't think it's fair to be taxed more because they have more, I believe that it is only morally right to give back--especially when your income is in the 6-digit range! As many of the rich Democrats (and some Republicans) acknowledged, cultural and family backgrounds are often barriers to achieving the "American Dream." No matter how hard some try to climb up the ladder to better prosperity, it can sometimes be impossible. So for the millionaires out there buying a new car every six months, being taxed a little more cannot possibly hurt. To reduce the immensity of inequality of wealth in the U.S., I believe that improving educational opportunities for the less wealthy is critically important. As I am currently experiencing the struggle myself, I can vouch for those who claim that obtaining financial aid for college of any level is pretty much impossible nowadays. My parents' income places us in the lower half of the middle class, and I'm telling you--this is the toughest spot to be in. While we are not low-income enough to even be eligible to receive half of the scholarships out there, we are also not wealthy enough to pay off the student loans I will end up having. To be honest, just one year of the college I will be attending costs nearly a third of my parents' annual income. But since the number is just above the cut-off amount for more money, we have to suffer and drown in more debt than we should. So I fully support the effort to expand educational opportunities for the poor, and also to increase tax on the rich and raise minimum wage. And FYI, if I ever become wealthy one day, you can bet your bottom dollar that I'll be part of the crowd that has a heart and give back to the community.
ReplyDeleteAccording to the graph, the rich hold most of their wealth in equities (45 %). The rich think they should pay more taxes in correspondence to their politics. This also goes along with raising the minimum wage. According to the article, "Among Democratic millionaires, 78 percent support higher taxes on the wealthy, and 77 percent back a higher minimum wage. That compares with 31 percent and 38 percent, respectively, for Republicans." Personally, I think to lessen the inequality of wealth in the United States we should increase taxes for the wealthy. This is because the wealthy hold the bulk of the money and can afford higher taxes. Increasing taxes for the middle class would not help because they would have less money to spend and the middle class is becoming smaller and smaller as time goes by.
ReplyDeleteIt looks like the rich loves putting their wealth in the stock market(equities). Rich people think they can reduce inequality through taxing the the rich people more because doing this can put a part of their wealth back to the society. Rich people understand that the a way to get richer is through feeding the poor with their wealth so that they can spend in the economy(it works like a cycle). Taxing the rich implies that government is going to tax the poor less. Taxing the poor less can boost our GDP by shifting the aggregate demand curve to the right(At each price level, people want more goods and services). But the boost of GDP is only for short run. In the long run, the GDP tend to go back to the original spot with a higher price level. So adjustment on taxing will NOT necessary improve our economy. The TRUE effective way to reduce inequality is to have the government invest more on educations and technologies. Producing capital goods is the only realistic way of improving our economy.
ReplyDeleteThe graph provided indicates that the rich hold the majority of their wealth in equities. Fixed income is the next largest category at holding their wealth. Households in the top 1% of the distribution can afford to contribute; They have done enormously well during the past 30-plus years. In 1979, their income accounted for 10% of total income. According to the most recent data (from 2008), their share of total household income more than doubled to 21%. In contrast, real income for middle-class workers has remained roughly constant over the same time frame. Our country is in the throes of a debt crisis. We're delusional to think that we can continue with the current tax rates. As we've seen in recent years, when disposable income is concentrated at the top, the middle class doesn't have enough money to boost the economy. What we should have learned over the last half century is that growth doesn't trickle down from the top. It percolates upward from working people who are adequately educated, sufficiently rewarded, and who feel they have a fair chance to make it in America. Income distribution is so skewed in the United States because the U.S. has such low tax rates. A much higher tax on upper income — say 80 percent — coupled with a significant tax on wealth — say 10 percent — would go a long way toward making America's income distribution more equitable than it is now.
ReplyDeleteAccording to the provided pie chart, the majority of the rich hold their wealth in equities. The provided pie chart shows that about 45% of millionaires hold their wealth in this form. The second most popular way these rich hold their value is through s fixed income, only capturing 17%, a sharp decrease when compared to the equities percentage. Although members of both parties believe the government should increase taxes on the rich, it is primarily Democrats who believe in this countermeasure to inequality. These advocates of taxing the rich are aware of the limitations the lower and middle class suffer and recognize that a healthier middle and lower class promotes economic prosperity. My personal belief corresponds to the Democratic view, but not for political reasons. I see taxing the rich not as a way to make them poorer, but to simply lessen taxes on the other economic classes and promote spending. This sort of measure can level out the economic playing field a bit, which will increase spending, and in the end, lead to a more successful economy. I also support the notion of increased educational opportunity to lessen the inequality gap. More funding for not just the lower class, but the middle class as well will create a more financially intellectual population and help remove the negative impacts caused by the current levels of financial illiteracy.
ReplyDeleteThe rich hold most of their wealth in equities. According to the pie chart, 45% of the rich's assets lie in equities and next most important is surprisingly income. As many of the rich Democrats (and some Republicans) acknowledged, cultural and family backgrounds are often barriers to achieving the "American Dream." No matter how hard some try to climb up the ladder to better prosperity, it can sometimes be impossible. I think to lessen the inequality of wealth in the United States we should increase taxes for the wealthy. This is because the wealthy hold the bulk of the money and can afford higher taxes. Taxing the poor and middle-class would hurt the economy because they would be spending less due to higher taxes if they were put into place.
ReplyDeleteAccording to the graph provided, the rich hold the majority of the wealth in equities. This equaling 45 percent. The fixed income would be considered the second largest category, with about 17 percent of their wealth. 51 percent of American millions believe that the current level of inequality has become a “major problem”, according the CNBC’s Millionaire Survey results. This means that two thirds of these so-called millionaires have also advocated for higher taxes on the wealthy and a higher minimum wage. With all the respect for the wealthy, I believe that it is only right to give back to the country that they became rich in. I think that for the good of the economy, the rich should be paying more taxes. Although some may feel as though they should not have to give up what they have earned, it is only right to help those less fortunate than you. Taxes seem to be the most efficient way to reduce the inequality of wealth in the country. For the immense amount of things that these millionaires buy each day, I don’t think that it would be much of a strain on them to pay a little bit more taxes than the average middle or lower class pays. In the end this will promote spending in a positive way for the American economy. I also support the notion of increased educational opportunity to lessen the inequality gap. The funding of the education system will lead to more intellectual and educated individuals that will soon be running this world. If anything should change, this should be it. I think that In the long run this would be the most successful thing to go through with. Supplying the lower and middle classes for education will allow the playing field to be somewhat closer to equal.
ReplyDeleteThe graph shown in the article shows that 45% of the assets that belong to the rich belongs in their equities while the next is from their incomes which is around 17%. The rich believe that they should pay more taxes than the rest of the population because they realize that if they are not able to support the middle class, it will in turn effect their wealth. On a side note, it is mainly the democrats who are supporting the higher tax rate and raising the minimum wage. I do believe that by increasing the tax rate on the rich, this income inequality could be solved since the rich holds so much money they don't even know what to do with it, and by paying more in taxes, it will not only help them but the rest of the society as well.
ReplyDeleteAlmost half of the rich's wealth is held in equities followed second by their fixed income. I found it interesting that the rich keep assets in precious metals. No doubt only 1% of their assets is in precious metals but it funny to think some have gold in a vault, storing away a small portion their assets. Millionaires do realize that income equality is major problem in our economy today but they do not attribute this problem to themselves. Most are not ashamed of their wealth because they have worked hard to achieve the success that they have today, or so they say. They believe anyone can achieve the same success if they work hard enough but honestly how can we move up the economic ladder if we don't have a penny to spare? No money to invest in ourselves. The rich's beliefs on paying taxes is defined by their political. Therefore Democrats are far more supportive of paying higher taxes than the Republicans. Without distinction between parties, I wonder what opinion millionaires would have then. I generally agree with the idea of higher taxes and a higher minimum wage should be enforced to begin shrinking the inequality gap.
ReplyDeleteThe rich are keeping their money in lock down, 45% of it, by putting it into their equities.They do, however, agree with the vast majority of America, in that they believe that the "trickle down effect" is about as effective as a bath plug. They want to pay more taxes, because they know that if they don't, the middle class will soon cease to exist, and who will continue to make the rich wealthy if there is no middle class?? I think the best way there is to fix this income inequality issue is to cut the taxes on the middle class and increase the taxes on the rich, therefore increasing the money the middle class has to spend and getting more money into the economy.
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ReplyDelete51% of American millionaires think that the inequality faced by lower class citizens is a "major problem." They also think that they should get taxed more to narrow the wealth gap. The wealthy think they should pay more taxes because they think it will help the economy and slowly bring the inequality gap to a close. Most of the rich hold their wealth in equities. I think that increasing the tax rate on the rich would actually benefit the inequality. Also giving the poor more opportunities would help out as well, the poor happen to be taxed more than the wealthy.
ReplyDeleteI am really pissed because my comment disappeared after typing it all out. Anyhow, they don't have most of their money anywhere.Most is defined as >50%. Equities make up 45% of their wealth (their being millionaires) which is the highest percentage in the pie chart.The survey cannot be trusted in my opinion for two reasons. One, they don't give any information in the article as to who the millionaires they surveyed are (unless I missed something). Also, I doubt an even number of Republican, Democrats, and Independents are millionaires. They surveyed 514 out of the 24,000,000 millionaires that are in our country. Two, The phrase they used in the survey was pay more taxes. Obviously the rich will pay more nominal taxes. The phrase should have been phrased higher percentage of taxes. Okay, so anyway, if a large portion of your wealth is coming from your equities and less than 1/5 is coming from your income, then why not tax your income? I think this is why some millionaires are okay with higher taxes for themselves. "The 'lack of financial literacy' prevents poor households from making better financial decisions" is a sentence used in the article that I agree with 100% and that's why I am in Ms. Meachum's class. Everyone should be required to take a full credit of Economics in high school and must get a C or higher to graduate and colleges should be looking for people with at least a B in economics before accepting them. Exceptions made for people who excel beyond standards in another subject and are promising to do well in the future.Of course this will never happen but oh well. Also, I think each semester should be taught by a different political party to help eliminate biases. Evidence from this article tends to suggest that republicans work harder... hmmm... I wonder why that is? Maybe a viable solution is a change in core values of the individual to work harder to achieve wealth through propaganda because it isn't that hard to change the values of society based on what is on TV.
ReplyDeletethe rich hold most of there wealth in equities. 45 % of the riches wealth in is equity according the the chart. The rich feel like they should be taxed more because the weaker the middle class is the harder it is for them to make a profit. Also it will close the inequity gap. Well income should be raised and taxes raised on the wealthy. I believe that when the rich take there heads out of there butts they will see that the middle class are the people they need to be taking care of. Since the middle class are the job creator that make the money the rich love so much they should be somewhat happy to pay more. You have to spend money to make it and the rich seem to be high allergic to spending money.
ReplyDeleteMany of the rich people tend to hold their wealth in equities. Based on the article, it is shown that the wealthiest people actually want the middle to still exist, and that they believe that the wealthy should be taxed more because it will be more beneficial to the economy. In this case though the rich are probably not thinking for the better of the country, but probably for them because of how they need the middle class to be wealthy. Without the middle class, the upper 1% would suffer because they won’t be able to make any money off of the people. Taxes are almost always the most efficient way to reduce inequality of wealth. This is mainly because the money to sent to the government and then could be distributed to the poorer people through government transfers. This is the end would help the economy more because then the lower classes would have more money to spend in the economy, which would increase the amount of money being circulated in the economy. By increasing the amount of taxes on the wealthy, it would be for the better of the country, even if some of the richest people think otherwise. Without the middle, the rich would be nothing, and it’s time that they finally understood this.
ReplyDeleteA survey of people with assets of $1 million or more showed that the rich hold a good portion of their wealth in fixed income and real estate, but almost half (45%) is held in equities. Most millionaires agree that inequality is a major problem that exists is the U.S. economy. What surprises me though is that only 5% of millionaires felt guilty about the wealth that they possess. It seems as if they are acknowledging the problem yet have no remorse for the middle and lower class that are on the other side of this income gap. Democratic millionaires were more likely to support paying higher taxes and raising the minimum wage than Republican millionaires. When it comes to finding a solution to close the income gap, many millionaires cite educational opportunities and financial literacy as the issues. Though these are major problems in the U.S, I do not think that these would fix the income gap. Even if the lower class were to be educated, unemployment is still an issue as seen with how many college graduates are entering the workforce unable to find jobs. What needs to be done is increasing the tax on the wealthy because there is only so much that they can put into the economy. This is the only way to get money back into the pool of money to be allocated out to the rest of the population.
ReplyDeleteMost of the wealth of wealthy people is held in equities. This makes up almost half of their money. Wealthy people think that they should pay higher taxes and that there should be a higher minimum wage because they recognize that inequality is a major problem in the United States, which is what the article says. I believe it is also due to the fact that they are godless communists who believe that a progressive income tax is a viable way to distribute the burden of the U.S. debt. However, I agree with this wholeheartedly. In order to reduce income inequality in the United States the United States should implement a progressive tax, and seize all private property in the name of the state. If all of the private property and assets were made public, then all of the issue of inequality and poverty would be solved. These millionaires are probably still too greedy to ever agree to such a demand, so until then we will have to settle for raising taxes on the rich and expanding social services for the poor. One day, hopefully, this will transition into a classless society of total equality, but until then that is the best we will be able to do.
ReplyDeleteMost of the wealth the rich hold are in equities. The rich recognize that wealth inequality is a major problem in the united states and that something should be done about it however they aren't all in agreement about possible solutions. Some rich have advocated higher taxes for the wealthy to distribute more wealth to education while others suggested savings and wise spending incentives for the lower classes so that they may climb the ranks. Solutions to wealth inequality could include increasing taxes for increasing wealth brackets and incentive for the rich to modestly spread the wealth.
ReplyDeleteIn this article, a recent poll of the top wealthiest people in America indicates that their wealth has accumulated from the purchase of equities; accounting for 45% of their overall portfolio. The poll was undertaken to assess, from the wealthiest American’s point of view, the means for obtaining such wealth, the reason there is a great disparity between America’s rich and poor and what one can do to reduce this disparity.
ReplyDeleteThe poll was directed at the wealthiest of Americans, democratic, republican, and independents living across the nation. Members of all parties agree that there are several ways to reduce the disparity including higher taxation for the wealthiest Americans, raising the minimum wage, improving education, and savings incentives that would help the lower and middle classes to make and put back into the economy. Although most the wealthiest Americans believe that they should pay more taxes, the divide between them is how one is able to attain the great American dream of wealth. Republican opinion indicates the most important means to accrue wealth is through hard work. Democrats, on the other hand, believe that their familial culture and where they were raised was the most important indicators of how they would achieve wealth.
Across the board, both parties do agree that access to better education is vital to reducing the disparity between the classes. In addition to raising taxes on the wealthy, raising the minimum wage, establishing financial incentives to the poor and middle class, and contributing to education of those from lower socioeconomic families are all means by which the reduction of the disparity in the economic strata of American society.
I guess some of the rich have finally grown a conscous. the article talks about an interview done on CNN that the depicted the rich as the cuase for the inequality gap in america. From a survey that waas recently conducted over 50 percent of millionaires beleive that the inequality is a major problem. alot of their monies are being kept as equity in accordance to thier asset. the rich believe that they should pay more taxes because this is a grow9ing concern for them, also alot of them believe that they have earned it (which i will agree with). I beleive that thier should be new tax reforms in place to help ease the gaap, otherwise we may face a financoal crisis.
ReplyDeleteMillionaires hold most of their wealth, about 45 percent, in equities. In the first ever millionaire survey, it was actually revealed that 51 percent of millionaires actually think that taxes on the rich should be raised. They feel the income inequality in the country should be brought down. They find it to be a major problem. Nearly two thirds support higher taxes on the wealthy and think that higher minimum wages should be implemented to bridge the gap. Millionaires have a complex view on the subject of opportunity in America. They are proud of their own wealth and think they have worked hard for it. They felt everyone in America had that same opportunity to work hard. But at the same time that family and cultural issues keep people from reaching their potential and achieving success. They advocate better education, higher taxes on the rich, and better saving incentives for the lower and middle class as ways to reduce income inequality. 94 percent of millionaires think that the American dream is possible. Personally I think that raising taxes on the wealthy, at least for now is a good way to mend the system and bring the country back to shape in order to take improvement action more. We also need to really invest in education so as not to continue the pointless cycle of poverty and inability to move up the economic ladder.
ReplyDeleteThe poll was directed at the wealthiest of Americans, democratic, republican, and independents living across the nation. Members of all parties agree that there are several ways to reduce the disparity including higher taxation for the wealthiest Americans, raising the minimum wage, improving education, and savings incentives that would help the lower and middle classes to make and put back into the economy. at the same time that family and cultural issues keep people from reaching their potential and achieving success. They advocate better education, higher taxes on the rich, and better saving incentives for the lower and middle class as ways to reduce income inequality.
ReplyDeleteThe graph shown in demonstrates that 45% of the assets belonging to the rich belongs in their equities, while the next is from incomes, about 17%. The rich believe that they should pay more taxes than the rest of the population because they realize that if they are not able to support the middle class, it will in turn effect their wealth. Meanwhile, it is mainly the democrats who are supporting the higher tax rate and raising the minimum wage. I believe that by increasing the tax rate on the rich, this income inequality could be solved since the rich hold great wealth that they don't even know what to do with it, and can only spend so much, and by paying more in taxes, it will not only help them but the rest of the society as well.
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