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By A Smith (anonymous) | Posted October 08, 2008 at 20:45:18
Rusty, rich people might not work the hardest, but they pay more in taxes than other people.
Ever since governments in North America have reduced top marginal tax rates, the amount of taxes paid by the top 1% has steadily increased.
This has happened because rich people now find it easier to simply pay their taxes, rather than hiring accountants to find loopholes and tax havens.
However, now that rich people pay more in taxes to the government, the proportion paid by average earners has gone down.
Since benefits still tend to go to average earners, the effect is that rich people pay more but get less in benefits.
Curiously enough, the gap between the rich and the poor has also been climbing, as the rich have taken a larger role in helping poor people.
That is why I believe the best way to bring back well paying jobs for the average citizen, is to either decrease benefits or ask beneficiaries to pay more in taxes.
The first scenario has been proven to work, as median incomes rose steadily in the 90's as governments cut back on spending.
Under George W Bush, however, median incomes have stalled as social spending has hit an all time high.
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