Comments on: Do Higher Taxes Lead To Socialism In America?

By: Tuition Hike For The Poor Is Like A Tax Hike For The Rich | Financial Samurai

Mon, 23 Nov 2009 08:08:43 +0000

[...] “Do Higher Taxes Lead To Socialism In America?” (obviously, maybe) [...]

By: admin

admin — Sun, 25 Oct 2009 00:09:17 +0000

Hey Len! Thanks for your thoughts and glad you enjoyed the post! We’ve got some fervent debate over on the follow up post “We’re Ignorant Idiots! Tell Us Why The Flat Tax Isn’t Fair!” http://www.financialsamurai.com/2009/10/09/were-idiots-please-tell-us-a-flat-tax-is-not-fair/. There’s something like 85 comments and going strong.

Best, FS

By: Len Penzo

Len Penzo — Sat, 24 Oct 2009 23:48:55 +0000

A very provocative article, to be sure! :-)

Socialism definitely leads to higher taxes – or hyperinflation for governments without the courage to raise the taxes to pay for the services.

Higher taxes also lead to socialism by default, because government is not capable of fiscal restraint.

As David has eloquently said, the real answer is less government.

And re: the flat tax… I don’t know about you, Sam, but I think you might want to reconsider who a flat tax would hurt most – it’s actually the poor and middle class. Folks earning $30,000 per year are not paying $4500 per year in taxes. I know my taxes would more than double and I am solidly in the middle class.

Very interesting post! :-)

My $0.02 (after taxes),

Len

By: Tell Us Why The Flat Tax System Isn't Fair | Financial Samurai

Tell Us Why The Flat Tax System Isn't Fair | Financial Samurai — Fri, 09 Oct 2009 16:08:16 +0000

[...] “Do Higher Taxes Lead To Socialism In America” [...]

By: An Open Letter To Vikram Pandit, CEO of Citigroup | Financial Samurai

An Open Letter To Vikram Pandit, CEO of Citigroup | Financial Samurai — Wed, 23 Sep 2009 15:13:18 +0000

[...] “Do Higher Taxes Lead To Socialism In America?” [...]

By: admin

admin — Mon, 07 Sep 2009 01:11:32 +0000

Hey Marci! Thanks for stopping by! I hear you regarding paying less taxes and not relying on the government. The sweet spot seems to be a $200,000 income for singles or less. Doesn’t look like Obama will touch folks with income less thank 200K.

What exactly is the 8.5% tax bracket you are referring to? Is that your effective tax rate? Or is that your state tax rate? I’m looking at the US marginal tax rates, and the lowest is 10% for income $8,350 or below. I’d love to pay 8.5%!

By: marci

marci — Mon, 07 Sep 2009 00:58:36 +0000

Higher taxes make me want to earn less money so I pay less in taxes….
but still do for myself – I definitely do NOT want to have to rely on the govt
to take care of me….. I am doing just fine on my own, thank you very much :)

Higher taxes are a disincentive to higher wages.
Why earn more when you will pay more in taxes?
Not me. Find a frugal level you are happy at, and live within your means.
For me, it is 8.5 % tax bracket…. That’s where I can still live ok.

By: Bulldog

Bulldog — Sat, 05 Sep 2009 21:33:29 +0000

Higher taxes make me want to do nothing and let the government take care of me. Is that not the American way?

By: fs

fs — Fri, 04 Sep 2009 00:26:31 +0000

Hi Bill – Thanks for sharing. I agree about your comment on effective, hence why I wrote about the $1million/yr income effective rate of 40%, and marginal at 50%+. The question remains though, do you think higher taxes lead to socialism in America? :)

Shogun

By: Bill in NC

Bill in NC — Thu, 03 Sep 2009 17:05:38 +0000

Effective, not marginal tax rates are what matters.

Married w/ kids and with a modest income my effective federal rate is under 15%, even though my marginal bracket is 25%.

What I’ve noticed is over even the last decade is the expansion of state taxes.

Here in the “low-tax” southern U.S. my effective state income tax rate has risen to north of 6% from under 4% (& the state sales tax rate has doubled over the last 25 years)

By: fs

fs — Thu, 03 Sep 2009 06:03:11 +0000

@David@DINKS Finance It's good to have passion David! Without passion, you might as well never try! Shogun

By: Old Man

Old Man — Wed, 02 Sep 2009 23:06:15 +0000

@David@DINKS Finance You wrote "Really? Is this a serious statement? We’ve been spoiled by lower taxes for the past decade?" So yes, I'm responding to your question as taxes are now lower than they have been before you were born.

By: Gen Y Investor

Gen Y Investor — Wed, 02 Sep 2009 22:43:56 +0000

@ Shogun, Yeah I’m happy I sold some of my more aggressive stocks earlier in the week. I still have my defensive dividend stocks and will use my cash to buy more if we go a lot lower.

By: James

James — Wed, 02 Sep 2009 22:15:16 +0000

Look, higher taxes support the growth of ever larger government. The more government you’ve got, the less freedom and individual initiative you’ve got. There just aren’t any two ways about it.

By: Old Man

Old Man — Wed, 02 Sep 2009 20:17:10 +0000

@David@DINKS Finance David, the world is your oyster. When you get older, you're realize that you too will need some help one day. Big government is there to help those who cannot help themselves as much anymore. Relatives and parents pass, and sometimes you're stuck with only yourself. How does one take care of themselves if they do not have that sizeable nest egg? For a student, I'm surprised by how right-winged you are, given you're still a student.