- Revenue for defense, education, health care, social security, and so many other needs must come from somewhere.
- The rich already have enough money to live a great lifestyle; it won't hurt them
as much to increase their taxes.
- The skyrocketing national debt, compounded with the unsustainable federal deficits, have the potential to topple the U.S. and world economy
if more isn't done soon.
- Government can use taxes as a means of redistributing wealth to the poor and less fortunate.
- The power of rich individuals such as Bill Gates, Warren Buffett, and George Soros, must be contained by limiting their wealth.
Since the rich always alter their spending, investment, work, and tax behaviors in response to rate increases, the amount of revenue brought in to
the federal government can actually decrease, which is explained by the economic principle known as the
- Tax increases usually have a negative effect on the economy, since consumers
have far less money to spend and invest; slowing the economy consequently
decreases revenue (since incomes are smaller) and increases spending (due to increased entitlement spending on unemployment, welfare, etc.).
- As we've seen recently with the Alternative Minimum Tax, inflation eventually brings incomes up to the point that the middle class is hit by taxes
originally targeted for "the rich".
- Taxing the rich does nothing more than shift money from the private sector, where it is usually invested and spent efficiently, to the government, where
it often ends up going to special interests or campaign contributors, or where it's inefficiently squandered in government bureaucracies.
- It provides less incentive for government to cut spending and reduce its size & intrusion into our lives.
If marginal rates get too high, it might motivate some of the richer people to move to another country, taking with them all of their potential tax revenues.
- It's yet another way of dividing Americans; class warfare misdirects anger at the government and life circumstances by turning the lower & middle classes against the
rich, and the rich (who increasingly resent paying an increasingly
greater share of the tax bill) against the poor and middle class.
- Lower taxes means higher potential profit, so individuals are more likely to invest and start new businesses.
- Less money is given to private charities that are usually efficiently run, with more funds instead going to lobbyists, campaign contributors, and other
friends of politicians (i.e. "crony capitalism"). Even when money is directed to worthy causes, the federal bureaucracy incurs so much inefficiency and
fraud that only a fraction of it goes to the intended recipients.