Tax reductions for the needy should not flow through to the rich!

Tax reductions for the needy should not flow through to the rich!

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Chatting to a young guy today, Nicholas...and he mentioned that "they", the political leaders, reward the rich and forget about the poor. the poor being guys like him on $30,000 a year.

We agreed that it's always great to get a tax cut at the lower end but it flows to the rich as well as they benefit from any cut to a lower rate.

He didn't know exactly which level of income is considered "rich", but it's way above his pay grade.

I explained that someone on $100,000, say, is not "rich" and it's a matter of perspective. When you're looking up at higher income earners anyone above you may seem to be rich, but they often have responsibilities and obligations which you do not and this negates the advantages of having a higher income.

"Rich" or "well off" is a matter of opinion. Anyone earning over say, $100,000 would be doing well, whilst anyone over $140,000 would be pretty well off, in my opinion. "Rich" is a lot further up the ladder.

I suggested that, whilst I don't want to discourage people from earning as much as they like, there comes a time when the high income earners should not receive tax reductions aimed at the more needy.

I proposed that where lower income earners receive a tax cut, the high income earners should receive a tax rise, at least equivalent to the tax cut of the lower income earners, so that they remain at the same tax level as before and do not receive an unfair advantage.

 

 

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