We live in a democracy where everyone has a vote. Senator Obama wants our nations wealthy to pay their “fair share” of income taxes.
According to 2006 data and Kiplinger’s, the income tax burden is not shared proportionally (see chart to the right).
What if the top 1 percent were to pay 50 percent of our nation’s income taxes and the top 5 percent pay 80 percent≠ The 50 percent that are currently paying 3 percent might vote for this increase on the wealthy.
What happened if one out of 10 of our nation’s top income earners decides to leave the United States and live in a more tax friendly country≠ Capital to create jobs and tax revenue will be lost!
Just look at New York State over the last decade with respect to population growth and job growth. New York is the third highest taxed state in the United States.
Democracy will lead to the decline in capitalism. For those that stay, municipal bonds are an attractive asset class.
George W. Karpus is president of Karpus Investment Management, an independent, registered investment advisor that manages assets for individuals, corporations and trustees. Offices are located at 183 Sully’s Trail, Pittsford, NY 14534, (585) 586-4680.