Stop Discriminating Against the Successful

0,,17424737_303,00How can anyone with a brain be surprised after reading today’s New York Times, which says that President François Hollande of France has begun a “major charm offensive to convince the world that France is open for business in a bid to lure back investments.” What? You mean that Hollande’s 75 percent tax rate on the successful isn’t working? A campaign which drove out the successful by choking them has backfired and created huge economic problems? You don’t say!

As even the uber-liberal Times was forced to admit, “the United Nations conference on trade and development reported that foreign direct investment in France plunged 77 percent in 2012,” the sharpest decline of any Group of 20 nation. Hollande promised “change” and it spooked businesses away, rightfully. The article quoted a business owner, who paid double in France what he paid in Britain — and why would he want to do business in a place where he is penalized? Businesses and successful people work hard and deserve to be rewarded, not penalized. 

The lessons of France are something which I, Ronn Torossian, hope that New York officials will learn from, as their current demonizing language is something more apt for a country with a socialist nature like France. And as France’s efforts are failing, if NY continues to seek to “soak” millionaires, they may just flee.  When that happens, it will not take long until NY will be forced to similarly chase money just as France’s President now does.

Along those lines, why is it that discrimination against the wealthy is one of the few accepted forms of discrimination? While President Obama mentioned the word “inequality” 26 times in his State of the Union address, no one mentions the unequal treatment which is afforded to the successful amongst us. Why penalize the successful and have a system where the top one percent pay more in federal income taxes than the bottom 90 percent? That is the very definition of unequal, discriminatory treatment. According to the nonpartisan Tax Foundation, 1.36 million taxpayers pay a larger share of the federal income tax than the bottom 90 percent — or 122 million taxpayers. Discrimination which should come to an end.

With Obama’s policies, the discrimination gets worse. The Congressional Budget Office, a nonpartisan federal agency that provides independent analysis of economic and budgetary issues, said that the impact of President Obama’s plan to raise the federal minimum wage to $10.10 an hour, can be up to 1 million lost jobs by 2016.  Raising wages 40 percent is too much, too quickly – in the midst of crippling tax raises and a still struggling economy.

Of course, let’s not forget that the Congressional Budget Office also said that Obamacare would cost the economy 2.5 million workers by 2017.  The reason for that is clear — small companies will cut back on workers’ hours to avoid requirements that full-time workers be offered health insurance. Raise taxes, raise costs — and bosses will eventually get fed up.

Rather than working to ensure that entrepreneurs can earn more, which would create jobs, it destroys jobs by continually overtaxing the successful.  As an entrepreneur, as I have said before, there is a current system of taxing the successful to death, and it doesn’t work or motivate those who need to create jobs.

America must stop discriminating against the successful and create income tax equality.

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  • Richard Sima

    Indeed, some discrimination is permitted.

  • Shedayim Yafot

    The language used here by Ronn Torossian is right on — The left must be on the defensive. They discriminate not the right.

    • carpe diem 36

      i really really like your nomme du plumme….
      i fo course understand Hebrew.

  • A Z

    The economy has been moving in fits and starts. People do not know how much Obama and other Democrats want to extract from them. New taxes, higher tax rates and new regulations could stall growth or end their businesses. So they sit on their money. Consumers are doing the same. They build up until they have saved so much and then they spend to take care of immediate needs.

    We have more of a sawtoothed pattern of spending instead of more steady growth. We see it especially in larger corporation where they will produce build up and inventory and then go on a diet for several months or more.

    This is more than just the result of monetary policies and bubbles. It is the difference between someone saying “Morning in America” and someone who says “You didn’t earn that”. When we here the latter we know what is coming next. This economy IMO is one of Obama’s own making. The white, speculating, house flipping, senator from Massachusetts with high cheekbones, whose great grandsire once killed an Indian, is cut from the same humor (bile).

    And I do mean sawtoothed. Once again GM & Ford are sitting on too much inventory. They are channel stuffing just the same as when GM was (is) government motors.

    • A Z

      I am tired every time businesses loosen up and rebuild inventories with great trepidation cheerleaders in the press crow the economy is back. The economic indicators tick up slightly and they say we are back. We aren’t everyone is afraid of Obama, Democrats, spoiled OWS with their apple products.

      • Habbgun

        I know isn’t that Keynesianism at its worst. Someone bought something and suddenly the pump is primed and Happy Days are Here Again. My favorite business reporting is when they go excess inventory is preventing business expansion. The thing is this is supposed to be Wall Street’s outlook and not Leftism. The stock market is just supposed to produce money for everyone and at every time. So the connected ones pretend there is a direct link to inputs and outputs and the economy is fine and those of us outside of the world of stocks are ignored.

        • A Z

          I have not looked to the stock market as an indicator of the health of the economy for a few years now.

          The stock market is artificially high and even Goldman-Sachs says so.

          Stock market has been artificially inflated by QE.

          Meanwhile labor force participation rate has dropped and unemployment is higher than they say it is.

          The clincher is the number of people SNAP.

          It is all a lie.

          • bigjulie

            From your keyboard to God’s eyes…

    • carpe diem 36

      what is happening is very plain: it is called human nature. if you make laws that are not good for business then business react. if you think that raising taxes will give more incentive to businesses to grow you are going against nature, and business will react as expected but not by those who make the laws. redistributing wealth is against human nature.

      • A Z

        You misread my post. Maybe my writing is at fault.

        ” if you think that raising taxes will give more incentive to businesses to grow you are going against nature”

        I don’t think that and I did not say that.

        I wrote this post out of frustration. Obama sends Biden out on a dog & Pony show crying “The summer of Recovery”. It is not much of a recovery.

        I saw over at Zerohedge, where the car manufacturers are channel stuffing. I do not exactly need ZeroHedge to know about inventory turns, dealer inventories from other industries. They could sensor the news about the car industry And you could still tell from other industries or from other industries up or downstream.

        I also do not like how Obama and company are pushing regulations at the EPA. I have been to several capitals & other larger cities in Europe, Latin America & Asia. I know what pollution is and is not.

  • Yasha7

    Flat tax. It seems so simple to me, although I’m not an accountant–nor a politico.

  • jimd

    Eliminate income tax and switch to a national retail sales tax. That is the solution. This would drop the corporate tax rate in the US from 35% to ZERO and create MILLIONS of new jobs in the US almost immediately. It would also eliminate the IRS and collect tax from the black market economy. Something a Flat Tax would never do.

    This solution is called the FairTax – HR25 / S122 and is currently being held up in the House Ways and Means committee. See http://hr25fairtaxreview.com/ and or http://www.fairtax.org for more information.

    • carpe diem 36

      you have to think this through. young families spend most of the money they make on things that young families need compared to older families. growing children need more clothes than old people so they will be paying more sales taxes. young families need new furniture and more household goods so they will pay more, older established families to not buy new furniture, nor do they remodel their homes or do a lot of things that young families need to do.and of course they pay tuition that old families do not, so the burden will fall more heavily on the young. i do not think that consumption tax is a good solution. i do think that the more people work the more taxes will be collected, and we need energy in sufficient amount and at a reasonable price to increase employment. we have now a gov’t that does all it can to shrink and limit the growth of both energy and employment and so taxes are not being collected.

      • jimd

        The FairTax has thought this through. There is NO tax on used items and no one pays tax on purchases to the poverty level. For example, a two adult, two child household would be able to spend $31,000 tax free. Once they start spending beyond that on NEW items or services, the FairTax kicks in. This is called the pre-bate and is explained well on the websites I mentioned.

        • bigjulie

          Interesting that there would be no tax on “used” items. My wife (who grew up “poor” but ended up a modest multi-millionaire by her own efforts) still shops regularly at Goodwill. Its what she and her family did in NYC where she grew up. She calls it “The Thrill of the Hunt”. I go sometimes and am blown away by the number of Mercedes Benzes, “Lexii” and other extreme top-end vehicles in the parking lot.

      • jimd

        I forgot to mention that tuition is considered an investment and investments are not taxed. No tax on tuition.

        • carpe diem 36

          i did not know that. this is a very good thing. I am sure gov’t will not collect as much taxes as it does now. a good thing.

          • bigjulie

            AMEN!!

          • jimd

            Actually the FairTax is revenue neutral at a 23% national retail sales tax so it doesn’t change how much the government collects – just how they collect it. With a booming economy that number could go down too. (Just to be clear – the 23% is a tax inclusive number – same as your income tax bracket. If you buy something and pay $100 including tax, $23 of those dollars goes to fund the government. Some will say this is a 30% tax – which if compared to sales tax, they are right, but if we want to compare apples to apples, it’s really 23%. Another point to keep in mind – Corporations pass the cost of tax and tax compliance on to we the people in the form of higher prices for their products (or lower wages, or lower dividends). The experts tell us that every product manufactured in the US is 22% more expensive because of the tax burden being passed on. Long story short, most of that cost goes away and you add back the 23% consumption tax and things will likely be 5% to 8% more expensive BUT you have taken home your WHOLE paycheck (federal withholding and FICA are gone – state tax is a different thing). Bottom line – we would all be better off! Call your Senators and Representatives and tell them to support the FairTax. You can also get involved with local groups by going to FairTax.org and looking for local leaders.

      • bigjulie

        There is no tax at Goodwill! There is also a lot of damned good stuff there!

      • NAHALKIDES

        The problem with your objections to a Sales Tax is that the alternatives are worse. I used to favor a flat income tax, which it seems to me would be very simple, but as long as there’s an income tax the Left will push and push to make it progressive – a great evil and the handmaiden of income redistribution. A consumption tax has the great merit of making income redistribution much more difficult, although if we put one in place their answer will be, as always, more borrowing.

        • carpe diem 36

          I think this will open a wide gap for under the table commerce. and we will all become tax cheaters.

  • bigjulie

    We have lots of problems in America, but one of the largest is the lack of understanding of how our economic system works. This results in many of the other problems, which would not be created if said understanding were extant.
    Our very successful system is based on inequality, just like the natural world. The systems that various charlatans (including the one in the White House) keep trying to institute inevitably fail, because they are “un-natural”.
    I am sick and tired of the heaps of crap about the “Poor” and what we need to do to help them. I tell solicitors looking for donations that I “gave at the office” and that they should call the State or Federal Tax office to get some of what has already been dragooned out of me, and when these entities get out of the Robin Hood business, I will start donating to charities again!
    The “poor” live like relative “kings” in America. They have roofs over their heads, plenty of food to eat, vehicles, Obamaphones, flat-screen TVs, “free” health care, and clothes on their backs, all courtesy of the overtaxed taxpayer! Meanwhile, back at the ranch, they contribute next to nothing to the operation, maintenance and defense of my beloved, but slowly sinking, country, but still enjoy the benefits…for FREE, in addition to all the other FREE stuff!

    And why, despite all these efforts to eliminate “poverty” are the ranks of the “poor” still growing? Because it is axiomatic that the easier you make it for people to be “poor”, THE MORE “POOR” PEOPLE YOU ARE GOING TO GET!” And, they are not liable to vote against the goose laying all the golden eggs! This is not Rocket Science!!
    The charlatans (most of them “Progressives”) have created a preposterous, ponderous, waddling government that can’t even get out of its own way over the last 100 years and that now screws up everything it touches with bureaucracy and the waste it needs just to get a little something accomplished!
    Fair tax is one answer. At least it will cause the “Poor” to contribute some of their loot back into the system. Either that, or make it more uncomfortable to be “poor” and return some incentive to use the rare and wonderful freedoms we still have left in America to get out of “poverty” all by yourself…the way the Country was created to facilitate in the first place!

    • jimd

      Hi Julie – I agree with you. Lots of people are scamming the system, not reporting income and buying big screen TVs, iPhones, etc. That’s where the FairTax – a national retail sales tax on new goods and services would level the playing field. NO American living in the US LEGALLY would have to pay tax on the basic necessities of life (living to the poverty level). Once they start living beyond that EVERYONE is taxed the same on their CONSUMPTION. Go buy a big screen TV and you get to pay tax on it.

      The FairTax eliminates ALL income tax – both personal and corporate and simply changes the way we collect tax. Read more at http://hr25fairtaxreview.com/ or http://www.fairtax.org.

      • bigjulie

        You make some excellent points. I may have gotten a little carried-away. The Fair Tax is, in fact, a better alternative. My main concern is that everybody living here pays something, otherwise there is no incentive to give a damn one way or the other! Plus, the Government has much more incentive to keep the economy humming! No sales means no tax coming in!

        • jimd

          Another beauty of the FairTax – everyone is treated equally and can essentially decide when and if they pay tax. It also encourages productivity rather than taxing it. It would also tax the black market economy who pay no income tax (because they don’t report it) but who buy some really nice stuff.

      • bigjulie

        I modified my original post and changed “Flat” to “Fair!

    • carpe diem 36

      the poor will not contribute, that is the whole idea of being “poor” to live on the generosity of others.

      • bigjulie

        Well, that crap has got to stop. When I was a flaming Leftie in the ’60s, there was a popular bumper sticker, “Cash, Grass or Ass! Nobody rides for free”

  • Donald J DaCosta

    The reason the rich get “taxed to death” are blatantly evident in the numbers: 1.36 million vs 122 million. With the majority of politicians it’s first and foremost about winning elections. Election results tend to indicate that, a good bit of the time, a majority of the 122 million think the 1.36 million should pay more which gives the “equality,” tax rapist, political factions a strong incentive to tax the minority group, the rich, with abandon. That the economy will suffer matters not a wit. That they will not suffer and most likely be elected every two, four, or six years, does. And when the country’s economy tanks they can blame the 1.36 million for “not paying their fair share” and retire in the Bahamas leaving all they’ve duped over the years to take vengeance against those who are paying their salaries or entitlements, those they’ve been programmed to hate. A classic case of the dogs “biting the hands that feeds them.”

    Unfettered, uneducated, unenlightened, uncivilized human nature tends toward greed, sloth, envy and wrath, four of the seven deadly sins at work here. In their quest to achieve “social justice,” a socialist Utopian fantasy, socialist, progressive, communist, leftists count on it working in their favor. That it seems to work should scare the crap out of us all.

  • Andy_Lewis

    Cry me a river, guy.

    • NAHALKIDES

      Keep your hands off what other people have earned, guy.

  • Schmitty

    You mean rich people won’t just stay in the country and hand over more money? Who would ever have thought!?

  • markdouglas

    Fairtax sounds great, because all goofy frauds do. In fact, Im so sure Fairtax is a fraud, I offer, and have for years, 50,000 dollars — really — if any Fairtax supporter can show one page of that 22 million dollars of “research” about this “very simple” personal retail sales tax to replace all other fed taxes.

    Fairtax has no research — I don’t mean it’s flawed, I mean there IS NONE. I guess it depends what you call research — I call it by the definition in the dictionary. What Fairtax has are a few documents with slick double talk — which hide goofy and impossible other taxes on TOP of, in ADDITION to, the personal retail sales tax they tell you about in books, videos and speeches.

    See, on TOP of those retail sales taxes, Fairtax has massive other taxes, like wage and pension expenditure taxes, like their advance taxes on capital investments. Oh you didn’t know about those? Do tell.

    The RETAIL part of fairtax — the part they tell suckers about — is just the tip of the iceberg, for the “assume revenue”. They “assume” all city county and states will raise tax rates, enough to pay 23% tax on all their wage, pension and capital investments. You had no clue of that, did you?

    Neither did city county or states. Chicago, for example, would owe over 120 million dollars as wage pension and capital investment tax. How the hello is that a personal retail sales tax? That is in their fine print folks. No, not research, they didnt research anything, because hiding your fraudl is not research.

    We need a new tax code — but mostly, we need people to not be so stupid they are fooled by the likes of Fairtax hustlers. We will continue getting fooled by such folks if we are too stupid to read the fine print and ask questions.

    Writing a tax code acceptable by all is probably impossible, but we need to scrap the current code. IT’s a cancer, it’s written by hustlers, like the ones that wrote Fairtax hustle. Get rid of all that, have a simple, tax plan, thats four or five pages long, and that the average high school kid can explain.

    Every time — EVERY TIME — some complication is added to tax code, especially to “simplify it” – it ends up screwing the working class and enriching the skimmer class. Just tax all income types the same, would be a great start