The WSJ has a post up explaining just how much income redistribution the federal government is doing already and what it would take to give every family an “average income.”
Many people believe the “rich” can afford to pay higher taxes since they command a disproportionate share of the nation’s income. However, the current amount of redistribution already takes 21% of the top quintile’s [20%] income. That would have to soar to 74% to make every family in America “average.”
I’m in that top quintile. I’ve gone back to work from retirement, but if the feds were to start taking 74% of my paycheck (on top of what Maryland takes), I’d find a way to be less productive so that I could keep at least half of what I make. Given that many, if not most, other high-income earners would do much the same thing, the amount of money available to be taxed from us would go down, which would drive the tax rate up, which would drive more earners to be less productive, which would result in the need for a further tax increase, which would …
The problem with socialism is that it always runs out of other people’s money.