Is Taxing the Rich Harder than it Sounds?

On my way to my office not too long ago, I was passed by a Maserati, which was immediately followed by a Tesla.

That’s a pretty rare sight around here.

Less than 10 seconds later, I passed by a church that gives away lunches to needy people.

That’s an everyday sight in lots of places.

I’ve been sitting on this column idea for awhile now.

I haven’t used it because I haven’t been sure what the point is. I just knew there was one.

It became a little more clear, however, when Elon Musk — chief executive of Tesla, ironically, and the world’s richest person — made a stunning announcement.

He tweeted last month, “For those wondering, I will pay over $11 billion in taxes this year.”

I didn’t realize we had an option to do such things, but we all know how the system works.

The US has seven tax brackets, ranging from 10 percent on lower earners to 37 percent for the top earners.

Yet, a study by the Federal government last year concluded that between 2010 and 2018, America’s 400 most wealthy families paid an average rate of 8.2 percent on $1.8 trillion of income.

Honestly, I’m surprised it’s that high.

But just like everything else, even something as seemingly obvious as having the top 1 percent pay their fair share is a political football.

According to a Reuter’s poll conducted recently, 64 percent of Americans said they strongly or somewhat support higher taxes on the rich.

And a majority of people in both parties supported it.

Gasp, I know.

That percentage means more than one-third of your friends and neighbors don’t.

The argument for raising the taxes is pretty obvious. 

First, it’s about having the ultra-rich pay their fair share.

Second, this money could be used to improve infrastructure and help those needy people who have to rely on a church to eat lunch.

The argument against it is less obvious, but compelling as well.

People say that even at an actual tax rate which is lower than what a fast food employee pays, the wealthy still pay a lot of money.

Another argument against is that if rich people are taxed more they will be reluctant to expand their businesses, which will hurt job growth and slow down the economy.

It’s all debatable, but it basically comes down to this: do we want to redistribute wealth or support a free-market economy that rejects government intervention?

I grew up in a conservative small southern town with a population probably around 1,000 at that time.

One family in town owned a very successful business. I went to school with their kids. I liked them.

And I never begrudged them for being successful. But people in town talked about them all the time — behind their backs, of course — just because they were jealous of their prosperity.

I never understood that. Even as a child, I wanted to be successful when I grew up.

And while I never really thought about it at the time, I’m sure I never would’ve thought that not paying taxes was an option.

So, thanks, Elon, for deciding to pay your taxes. 

I just hope we have enough sense to put it to good use.