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How the rich would fix the economy

By Judy Martel · Bankrate.com
Tuesday, January 17, 2012
Posted: 5 pm ET

Although 71 percent of millionaires surveyed by PNC Wealth Management agree in theory with billionaire Warren Buffett that the rich should pay more in taxes to improve the economy, nearly half of them say they shouldn't personally pay more because they're not in the same league as Buffett.

Uncle Sam wants your income.So, while only 20 percent say that taxes should be raised on the rich, a third of respondents think the best way to fix the economy is to reduce taxes, both for individuals and businesses. A majority, 80 percent, believe that reinvestment by individuals and businesses will stimulate the economy, and the government should leave them alone to spend their money the way they want. If taxes are raised, 41 percent say they'll change their investment strategy and 24 percent will give less to charity.

Unless Congress decides otherwise, the highest income tax bracket will increase from 35 percent to 39.6 percent in 2013. Rates on capital gains, currently 15 percent for long-term gains, could also rise.

The survey also revealed that, while 71 percent of millionaires believe they are better off financially than their parents, only 10 percent think their children will be better off than they are. That seems to signal a pessimistic view of future economic growth and opportunities.

Do you think it would be better for the economy to raise taxes on the rich or reduce them?

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5 Comments
Fred
January 24, 2012 at 2:19 pm

Trickle down economics has been a failed policy for 40 years, and will continue to be forever. Lowering taxes only allows the super-rich to hoarde more money while the infrastructure of our nation continues to crumble. The rich will send their kids to private school, while the rest of us will deal with third world-like public education. The rich will transport themselves in private jets/helicopters, while the rest of us pay higher gas prices to sit in traffic and get stuck on runways due to a lack of air traffic controllers. Know how many jobs have been created in the history of tax cuts? Exactly zero.
Our parents (and grandparents, and great-grandparents) invested in this country to ensure a thriving middle-class that made us great. Current conservative "news" outlets and talking heads have created a toxic culture that has resulted in an absolute raid on our country by the rich. If tax cuts were the answer, explain how current corporate tax rates (the lowest in over 60 years) have resulted in record corporate profits, yet unemployment hovers around 10%? If tax cuts were the answer, we'd have near zero unemployment now. And if you want to blame regulation, look at what eight years of systematic deregulation led to: a collapsed housing bubble, rampant Wall Street corruption, and one of the worst environmental disasters in the history of our country. Wake up!

BRYAN
January 22, 2012 at 7:47 am

Raising taxes is never the answer. look at how many politicians dont pay there taxes and take advantage of every loophole they can and want to keep the tax code complicated.I have seen first hand how badly state and federal government have wasted and misspent taxpayer money with impunity!If people only knew how bad they are wasting money even today you would understand that more taes is not the answer! Ten million dollars of us taxpayer monet to redo sesame street for Afghanistan? really? but we can cut local aid because there is no money!

CP
January 19, 2012 at 8:44 am

Greg,

"How does raising taxes improve the economy?"

Clearly it is because the government knows how to spend our money better than we do. You can trust them. Really.

Greg
January 18, 2012 at 10:30 am

How does raising taxes improve the economy?

Do you think the possible extra revenue to the government will increase their spending in the economy and create jobs? If so then we don't tackle the problem of the debt.

Do you really think we will pay down the debt with the extra revenue? Is it not more likely our debt will just grow that little bit less cause its not like the budget is balanced to actually pay of principal.

This country need investment. Who is going to do that. Well the wealthy and government. The big G is broke so the more they spend the more long term problems we have. The wealthy are sitting on the sidelines cause they are worried. Worried about what? That is alot of things. We need to remove those barriers so they feel confident to invest in the USA. Its a bad situation but two pronged approach is best. I just dont see the government doing anything cause its divided.

TUISHOU
January 17, 2012 at 8:25 pm

Yes. Agreed. The rich should pay more in taxes. Except me. I have my reasons.