Why the rich should pay more in taxes

[Schneed10]

Originally Posted by tryfuhl

As I said money isn't infinite. Those who hoard without putting back into the system are somewhat penalized on it. The poorer you are the more money you put back into the system proportionately. So if you're making more and more a year you're keeping some of the finite money from reaching other hands.

It's simple, really.

As an economics guy I take umbrage with the notion that they're not putting the money back into the system. The only way you can keep money out of the system is put it under a mattress.

If you're spending it, it's in the system. If you're starting a business with it, it's in the system. If you're investing with it, it's in the system. And if you're saving it, it's in the system.

Even if you put your billions in a money market fund, or even a savings account in the bank, that money is doing society a lot of good. The bank takes your money and loans it to people as they finance business ventures, college educations, building an addition on their home, whatever.

And whatever is earned on interest or dividends ends up taxed at the same rate as regular income. Yes that can be shielded to an extent, but I can do the same thing as an average joe. So I'm not really sure what you're talking about, the money is definitely "in the system".