The Rich Can Afford Tax Increases; Can We?

I read an article today which posed an interesting question regarding the current debate on tax increases: The rich can afford it; can we?

Think about it. Let's say I make $1 million a year. If the democrats have their way, my tax bill will go up next year. Or will it? I may very well go to my tax accountant and explore some tax avoidance strategies. If I'm an employer, I might decide that I can no longer hire the extra few employees I had planned to bring on. If I'm an investor, I might decide to move investments from one place to another to reduce my tax liability. But whatever I do, I will be able to afford the tax increase. I might forego the new Porsche or the Picasso, but I will still live well. No need to worry about me.

But what about the guy I might have hired who as a result of the tax increase won't get a job? What about the start up company I might have invested in that won't get off the ground? I can afford a tax increase. Can they?

Bill Gates and Warren Buffet both pontificate about how the wealthy should pay more in taxes, while they shield much of their income by setting up foundations. Nancy Pelosi and her philosophical soulmates preach that the rich should pay more, but I would bet my life that they all employ tax accountants to avoid paying taxes. Their hypocrisy sickens me. Their stupidity astounds me.

Some years ago, the Congress in its wisdom decided to stick it to the rich by enacting a luxury tax. Yachts, for example, were hit with an extra sales tax. From the progressive point of view, this was a great way to make the rich pay their fair share. One problem. The rich, as it turned out, could hold on to the yacht they already had. Or decide not to buy a yacht. Didn't hurt the rich at all. But companies that make yachts, and service yachts, and repair yachts, and the employees of those companies, all got clobbered.

No doubt about it. The rich can afford tax increases. Can we?