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America needs to raise taxes for the rich

Mitt Romney (middle) flaunting his wealth from investments working at Bain Capital. (photo/ projectavalon.net)

Romney recently revealed his tax returns following much pressure from his own party. While this transparency is welcome in our opaque political environment, a problem arises from the fact his tax rate is a mere 15 percent. For a man whose income numbers in the millions, this is ridiculous, especially considering the current tax rate brackets.

Normally, to get a 15 percent tax rate when filing taxes jointly as a married couple, there would have to be a combined income of $17001-$69000. They would then be taxed at $17,000 plus 15 percent of the excess over $17,000.

For a man whose estimated income is in the millions, this is unacceptable. His tax rate based on this information should be $102,574, plus 35 percent of his excess income over $379,150. This difference is too significant to ignore. The government, who needs taxes to provide needed service for us, cannot survive with millionaires like Mitt Romney paying less than half the taxes they should be.

Some still would argue for deductions officially lowering the income tax to 15 percent. This, however, is unfair.

The wealthy few can afford to get the deductions can lower themselves to a tax rate that is affordable to people who actually need these lowered tax rates.

What makes this reduction even worse is that he wants to reduce the top income tax bracket rate to 25 percent. This is a continuation of the odd Republicans belief that trickle down economics works. However, there has been nearly no contributions since the recession by these individuals who would benefit from these lower tax rates. There’s no evidence that this lowered tax rate would help at all.

Another idea that has been suggested is the flat tax rate by Newt Gingrich, which is an even worse option. Gingrich has suggested a 15 percent flat tax rate with almost no deductions.

First let us look at that rate. The government has been plagued by not having enough tax revenue to pay for basic functions, which builds up our debt. It is this lack of revenue that got our credit downgraded and continually causes our debt to hit the ceiling, which could shut us down as an economy.

Plus the 15 percent base affects people differently. To the rich, it would barely affect them since 15 percent really isn’t that much to those making over $350,000. However, people who are living on minimum wage would get hit a heck of a lot harder, as they would be seeing a tax hike. Now let us look at the consequences of getting rid of deductions.

Single mothers who have three kids are helped by the dependent deductions provided by her children and the childcare credit. This provides a credit for having your child watched by a childcare service, which allows her to work enough to support them. So then these annual tax returns help support her family or pay off necessary racked-up credit for food.

So in conclusion, we obviously see that change is needed. If we don’t do something about this, the government would be kept limping by the lack of tax revenue. This debt and lack of revenue would be alleviated if the wealthy individuals like Mitt Romney and Newt Gingrich were contributing more. So with elections approaching swiftly, take heed of this trend and vote accordingly

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