My first paragraph was most certainly on point and I see we've gone to the "job creators" argument already, which is a poor justification. "Money hoarders" might be a better term for many, but the most realistic term might be "job creators as it benefits them", if you want to pull the job creator card nonsense. They are making record profits in many industries, yet these "job creators" have us at high unemployment because of their supposed fears of the markert and people still carry water for them.
The problem, essentially, is not that people are rich. I'm not jealous of people having money. It's the fact that there is the step and fetch mentality for the individuals who use the lower classes and the mechanisms society and government has created for their own profits, then express the idea that they have done this on their own merit.
People bend over and gladly take it from them because they are slaves to the system and hold the erroneous belief that they too can become part of this elite group. They are so willing to kowtow to these supposed "job creators" that they will allow all kinds of abuses, disproportionate taxation and vilification of the poor to happen so they too can reach this dream.
So, no, my statement wasn't even close to trash. I suppose it won't matter and you'll still advocate following the "job creators" off the economic cliff again and again. We have sold our soul to these mighty "job creators" and got very little in return.
You assume too much.
"Our so-called brilliant, Nobel Prize-winning President, for months, has exhorted American businesses to hire employees and invest as if wishing for an economic recovery would make it so. Recently, however, Democrat and mega-businessman Steve Wynn told the country and Obama, if he was listening why cash rich business is not hiring and investing. According to Wynn, this administration is the greatest wet blanket to business, and progress and job creation in my lifetime . . . those of us who have business opportunities and the capital to do it are going to sit in fear of the President . . .
President Calvin Coolidge used to say, The chief business of the American people is business. Even so, business doesnt invest just for fun they invest for profit and they dont invest if they think the risk of not making an acceptable profit is too high. I wrote acceptable because business weighs the fact that even if they make money, it will be taxed. As such, a business must decide not only if it will be able to make a profit, but will the profit be so much that it would be worth the trouble/risk after taking taxes into consideration. Keep in mind business knows that it carries all of the downside risk and that government will take a good portion of any upside. If at some point the risk gets too high, business investment and spending is stalled.
Today, Steve Wynn, and much of American business, believes that the risk of not making a decent profit is too high for several reasons. For instance, business doesnt see sufficient consumer demand so they dont stock their shelves or expand production as they otherwise might. Regulations and the threat of more regulations are so high that they hold back money to pay for future costs. Taxes and the threat of higher taxes are also high and that too causes business to hold back spending in order to pay those future taxes. As a result, business investment and spending is stalled.
All of which brings us to the early 1920s. Back then government created unacceptable risk because it was taking too much of the upside. Democrats under Woodrow Wilson instituted the income tax in 1913 with a top rate of 7%. Just over 3 years later it was 77%. In other words, the federal government was telling Capitalists, You risk the downside and, if you are lucky enough to make money, on that last, top dollar, we will take 77%. Not surprisingly, by 1918, we were in a deep recession because of a reduction in war spending and the high tax rates. By the early 1920s, poor consumer demand and high tax rates caused investors to believe that there was too much risk for them to spend or invest very much.
So what did they do with their money? They parked huge amounts of it in tax-free, risk free, government bonds. Incredibly, rather than risk their money, the rich were being paid tax-free interest by the government. Also not surprisingly, government revenues lagged because business transactions and profits had been greatly reduced by the high tax rates.
Treasury Secretary and Republican Andrew Mellon saw all of that. It confirmed what he knew; namely that the history of taxation shows that taxes which are inherently excessive are not paid. The high rates inevitably put pressure upon the taxpayer to withdraw his capital from productive business.
