- The rich have higher tax rates because they can more easily withstand the consequence.
I did a little researching, and from what I could gather, economists regard the average wage of the top 1 percent of the wealthiest Americans for 2010 to be nearly $1.5 million dollars. (I don’t believe you or I fall into this category. If you do, introduce me to your financial adviser.)Now, if the government takes 35 percent out of a $1.5 million-dollar income, those particular wage earners will see their income reduced by some half-million dollars. However, that person will still have some $975,000 dollars with which to live. Yes, that’s a sizable drop, but I’m quite sure I could still live quite lavishly. I know I'm up for the challenge.
Now, consider a wage earner from the lower middle class who lives from paycheck-to-paycheck making about $30,000 dollars a year. Thirty-five percent of 30 thousand equals $11,200 dollars. No, it’s not a half-million dollars.
While this amount is considerably less than what the government takes out on the top 1 percent, the loss of it is much more ruinous and devastating to the lower middle class wage earner. A lower middle class wage earner would suddenly find himself or herself not just eking out of living, but crossing the threshold into poverty. Earners would suddenly need to have supplemental entitlements, such as food stamps and Medicaid, to just to live.I hope this information puts a little perspective on things.
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