This is a totally true statement, although it is comparative. Locally, the hardware and jewelry stores I deal with, are owned and operated by people who do OK, but by no means could be considered “rich.” However, they are wealthier than their employees. In 99% of the cases, those who hire, have enough brains and wealth to own a business, and hire people to work for them. Those employers are smart enough to know that in order to show a profit, they can’t hire too many, nor pay them too much. They can’t hire the inept either. They seem to leave those hires to the federal bureaucracy. Operating a business, is a very skilled occupation, and most new businesses fail in the first year. If a person is smart enough to operate a business at a profit, and hire people to work for him, the proprietor is always wealthier than those he hires.
Myself, David, and Melissa, my kids, are smart enough to operate our businesses with no employees, and there are probably tens of thousands of one man businesses in America, or tens of thousands who hire one or two people. It is CAPITALISM which made America, and capitalism is exactly what the name implies. If someone has capital, they will try to figure out how to increase their capital, by starting, expanding, or creating a totally new business. All businesses require employees and capital, even if they are one man operations.
In corporations, the corporation is owned by stockholders, and run by employees. The higher in rank the boss is, the wealthier they usually are, and they generally boss less wealthy underlings, although there admittedly have been a lot of moronic, overpaid, corporate CEO’s, who have destroyed their companies. (This column is dealing with businesses which are not huge corporations). Some business owners have many employees, and make good incomes. With those incomes, they always improve, advertise, or expand their businesses. If they were taxed to death, they would not do that, nor hire more employees.
Super rich people, never sit on their wealth! They may travel, build a swimming pool, or a bigger home. This creates jobs, of course. They may contribute to a charity which also hires people. Goodwill hires people to sell things given to them. Jobs and profit are what is important in the capitalistic system, and taxing those who create jobs, is a sure way not to create more jobs. That is not original thought, but a thought or truism, which seems to be lost on President Obama, or most Democrats, who mostly have never operated a business, or been responsible for a payroll. Obama has never been in the private sector, and knows absolutely nothing about the economics of profit, hiring, or being an entrepreneur. This writer has never done anything but operate businesses, and I get ill, when government grows and grows, and grows, and the deficits do the same. Government shows no profits, nor has to do so, so those running government, think nothing of running up deficits, expanding, and hiring without thought of the consequences.
The point of this, is that to tax those who hire and provide jobs, is absurd. Taxing the wealthy, will simply not allow them to provide jobs, build that swimming pool, or contribute to charity. Rich people will never sit on their money! Regardless of the degree of wealth, they will ALWAYS do good things with their wealth, and create or provide jobs. To decrease their wealth by taxation, simply harms the capitalistic system, which made America great. It has been the continual growth of profitless government since FDR, which has virtually destroyed capitalism, and sent jobs overseas, not to mention other horrors we have suffered since Roosevelt’s initializing of the welfare state 77 years ago. Let’s not expand government even more, by not extending the Bush tax cuts for the so-called ’rich.’ Without the ’rich’ of any degree, America would collapse almost overnight. Those main street entrepreneurs, are the backbone of capitalism, and there are already too many main street stores empty. Damn the Democrats!