Monday, April 1, 2013
Why high taxes is a bad idea
Lately there has a lot of talk about raising the tax rates on the rich. Although nobody wants to pay higher taxes (or any taxes at all for that matter), the people (apart from the rich people who don’t want to pay more taxes) all agree that the rich should pay more taxes .What constitutes richness has already been discussed by in an earlier post. But here I am not talking specifically about the United States, but France. In a euphoria about how the rich are not paying their fare share of taxes, the French government initiated a law that people who earn more than a million or so Euros a year shall have to pay 75 percent of their income in taxes. Although after a high profile person immigrated outside of France that the highest court of France struck it down as excessive. Now the same people who bought you the 75 percent individual tax, wants to tax the companies who pay for the individuals making more or so million Euros with the same 75 percent tax. I mean when is enough is enough. Okay I don’t like to pay taxes but I still do but what kind of incentive I will have to make money if 75 percent of my hard earned income from businesses for example that I owe will the government take away. I will only work in a place where I will get paid until a certain amount so as to avoid paying the absurdly high tax rate of 75 percent. I would not work harder if I have business and will earn below the threshold.