Millionaire Tax – Why a tax on the rich is a tax on the poor and society in general

Obama and Hollande in France get easy points by saying they will tax the rich.

What they don’t mention is that is tax on the rich actually is actually just a big a tax on the poor and the middle class, if not more.

Let me explain.

Someone earns a million pounds a year. Let’s assume they don’t spend all that money.

They have a number of choices.

They can invest the money, stock for example.

They can put the money in the bank.

or they can put the money under the mattress.

All these things help society.

By investing the money in stock they are giving the money to business to invest so they can grow their business. In a word they are helping people who employ people.

Putting the money in the bank. The more money a bank has in its vault the more likely it is to lend that money. Assuming of course the bank is in the black or the bank is not deeply indebted.

Putting the money under the mattress helps everyone because it increases the value of their money. Less money in circulation means there is less money chasing the same amount of products and services meaning prices come down. All else staying the same.

So that is it. When  government says they are going to tax the rich, what they are actually saying is that they are going to tax me and you indirectly.

A tax on the rich is not something that should be welcomed, even if you are a socialist.

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