The city of Seattle just took a nose dive deep into socialism by approving an income tax specifically targeting the wealthy — one likely to face a legal challenge in the near future.The tax is 2.25 percent for total income that is above the $250,000 mark for individuals, and higher than $500,000 for married couples who file jointly.
Nothing quite like punishing success, right?
According to the Seattle Times:
“Seattle should serve everyone, not just rich folks,” software developer Carissa Knipe told the council before the 9-0 vote, saying she makes more than $170,000 per year.“I would love to be taxed,” the 24-year-old from Ballard testified, drawing applause from a room packed with supporters of the tax.
The city estimates the tax would raise about $140 million a year and cost $10 million to $13 million to set up, plus $5 million to $6 million per year to manage and enforce.
The council’s finance committee cleared the tax last week and increased the rate from 2 percent to 2.25 percent.Opponents have argued the tax would violate state law and the state constitution, while proponents have said it would make Seattle’s tax structure more fair and that they want to test the legality of taxing income.
Anyone who volunteers to be taxed, with a smile on their face, clearly doesn’t understand the immorality that lies at the base of wealth redistribution.Taxation is one of the weapons big government uses to oppress people, and many who approve of such a system do not realize the devastating impact taxing the “rich” — which, in this case, would be many of the business owners who employ City citizens — can have on the economy.
When a business owner is taxed, s/he has less money available to apply toward expanding, giving raises, etc. It’s not the “rich” who suffer from such taxation, but the average middle-class American.
Not only do employees pay a price, so do consumers. Since business owners have to recoup the losses from the extra taxation, they often raise prices on goods and services, causing the cost of living to go up.
In short, with higher taxes, nobody wins.
What the government doesn’t understand is that the lower the taxes for all Americans, the more tax money they actually bring in.
Seattle, are you taking some notes?
[Note: This article was written by Steve Parker]