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Originally Posted by tpunx99GSX
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Tom, get a clue. That is because he uses tax shelters and hedge funds that doesn't make sense for the rest of us, or we don't have the disposable income to use. Your tax bracket is 25% and someone making $400k/yr is taxed at 35%.
Now if you really delve into the economics you will know that rich people like that don't sit with the money under their bed and hoard it. They reinvest the money. This leads to extra assets for companies, which allows them to expand, which allows them to hire more people. In my finance class we did scenarios where we lower the taxes on businesses and it created huge differences in the operating capital.
The biggest problem with the economy is shipping our money overseas. Our trade deficit has become rediculous, but for some reason that isn't getting much attention. I'll use the place I just worked at as an example. They would set someone up with a product, lets say a microwave. Target buys this microwave, we would take a small margin off the top (under 5%) and the rest of the money goes to China. So if you buy a microwave from Target for $100, Target gets $30, our company would have got $5, and the other $65 goes to China (those are all approximates). So 2/3 of that purchase was money leaving our country. That is the main reason our economy has tanked lately.