Increasing Taxes on Upper Income Earners

Henry W. Bloch, a nationally-known business leader and self-described Registered Republican, had this to say about the issue of raising income tax rates on top wage earners in an op-ed article published in today's Kansas City Star Editorial Page:

"I do not understand some Republicans’ resistance to the idea of tax increases on the wealthy. The argument we have been hearing from some politicians about the rich being the “job creators” is misguided. First of all, let’s not forget that our economy was doing better and the nation’s unemployment rate was lower before the Bush tax cuts, which benefited the top 1 percent of earners the most. Secondly, one would be hard-pressed to prove that low tax rates result in increased job creation. Companies today are holding record levels of cash, yet unemployment remains stubbornly high."




Warren Buffet has pointed out that we have a relatively flat tax rate because payroll taxes are deducted from only the first $106,800 of earned income.    The $250,000 annual income point discussed by President Obama would only adjust the actual effective tax rate on high-income individuals closer to the rate paid by most Americans, when payroll taxes are considered in the equation.     Small business owners like myself basically pay double payroll taxes on the first $106,800 of our pay.    Don't feel too sorry for upper income earners, particularly salaried upper income earners.    They have a very good deal compared to the rest of us.   A slight increase in the marginal income tax rate paid by high income earners won't break them and will basically put them in the same financial boat as the rest of us.