A simple anecdote explains why the wealthy should pay a higher tax rate on the upper portions of their income.
After putting away enough seed corn to feed his/her family for the year, a farmer has to decide whether to keep putting more aside for family food (even though he or she will have to share a lot of it with that disagreeable Uncle Samuel) or to plant it to grow next year's crops.
Farmers, like business owners and executives, get to choose how to allocate the proceeds of their businesses. But most farmers don't need a hungry Uncle Samuel to help them realize why it's a good idea to put this year's surplus to work growing next year's proceeds.
A higher tax rate on income over $250,000 — more than ample for most families — would give business owners a stronger incentive to make the corn-grower's choice: To put 100 cents out of every one of those surplus dollars to work growing their businesses by investing in new equipment and more highly skilled workers instead of giving nearly 40 cents out of every dollar to Uncle Samuel just to have the right to keep 60 cents with which to play and grow fat.
ROGER GANS
Valatie