Hard work = $250,000 ?

iVillage Member
Registered: 07-11-2006
Hard work = $250,000 ?
376
Fri, 10-24-2008 - 9:07am

I’ve read repeatedly that the $250,000 is hard earned money that the government has no right to tax. Personally, I don’t believe that hard work consistently results in high salaries and I’m not convinced that people who make more money work harder or deserve more than most people. Most people, I believe, do work hard and most people are rewarded with 25,000 – 45,000 salary. Not all some hard workers make more and some make less. What do you think? Is the Just World view valid?

http://www.princeton.edu/~rbenabou/beliefs7csend.pdf

most people have a strong need to believe that they live in a world that is just, in the sense that people generally get what they deserve, and deserve what they get. When confronted with data that contradicts this view they try hard to ignore, reinterpret, distort, or forget it —for instance by finding imaginary merits to the recipients of fortuitous rewards, or assigning blame to innocent victims.

Because of their imperfect willpower, individuals constantly strive to motivate themselves (or their children) towards effort, educational investment, perseverance in the face of adversity, and away from the slippery slope of idleness, welfare dependency, crime, drugs, etc. This is another recurrent finding from the sociological evidence. In such circumstances, maintaining somewhat rosy beliefs about the fact that everyone will ultimately get their “just deserts” can be very valuable. Furthermore, if enough individuals end up with the view that economic success is highly dependent on effort, they will ultimately represent a pivotal voting block, and set a low tax rate. Conversely, when individuals anticipate that society will carry out little redistribution, the costs of a deficient motivation to effort or savings are much higher than with high taxes and
a generous safety net. Each individual thus has greater incentives to maintain his belief that effort ultimately pays, and consequently more voters end up with such a world view.

For instance, data from the World Values Survey shows that only 29% of Americans believe that the poor are trapped in poverty, and only 30% that luck, rather than effort or education, determines income. The figures for Europeans are nearly double: 60% and 54% respectively. Similarly, Americans are more than twice as likely as Europeans to think that the poor are lazy (60% versus 26%).

Indeed, 59% of Americans agree or strongly agree that “in the long run, hard work usually brings a better life”; this view commands much less support in Europe, ranging from 34% in Sweden to 43% in Germany.

Is the “American dream,” according to our theory, just a self-sustaining collective illusion?

http://www.princeton.edu/~rbenabou/beliefs7csend.pdf

uCruiser.com Ticker

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iVillage Member
Registered: 03-09-2007
Thu, 10-30-2008 - 2:01pm
By using the funds from the taxes programs can be increased for those less fortunate.
Jess


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iVillage Member
Registered: 07-11-2006
Thu, 10-30-2008 - 2:02pm

IMO, there is no reason why ANYONE at any income level can't improve their financial position so long as they are willing to CHANGE something they're doing and be a little patient.


Yes, that's your belief system. I don't agree.

uCruiser.com Ticker
iVillage Member
Registered: 07-11-2006
Thu, 10-30-2008 - 2:05pm

do you not think it is a hard job to be president of the USA?


I thought there was already a consensus that people work hard at all levels of income - so your question is irrelevant.

uCruiser.com Ticker
iVillage Member
Registered: 07-11-2006
Thu, 10-30-2008 - 2:13pm

I am saying that the family's who have already done that "work" should not be penelized for it and that those families that are in their earlier generations might feel differently when they get to that same point.


1) I don't see a progressive tax as a penalty.


2) It still seems like you are simultaneously saying that all people are equal but some people "deserve" to get inheritence and the others don't. Makes no sense to me.

uCruiser.com Ticker
iVillage Member
Registered: 08-25-2008
Thu, 10-30-2008 - 2:44pm

Cute, but not relevant. There are people who are intelligent and well educated who are not making 250+. There are people making 250+ who are not particularly intelligent or well educated


Cute and completely relevant.

iVillage Member
Registered: 08-25-2008
Thu, 10-30-2008 - 2:51pm

iVillage Member
Registered: 04-02-2007
Thu, 10-30-2008 - 3:34pm

I agree that people are not equal. People should be equal under the law, but people are certainly not equal by almost every other measure.


I am not crazy about the "progressive" tax structure. People with low incomes obviously shouldn't pay as much as people with moderate or high incomes. But there should not be in increase in the tax rate as a family's income goes up. In other words, if I make $250,000 and I pay 37%, I should continue to pay 37% even when I make $400,000. The amount of the tax will go up because my income has gone up. But I see no reason why I should pay a higher percentage of my earnings simply because I earn more. That penalizes success, however it's earned.


Cat 

Mom to 5: DS-17, DD-16, DD-11, DD-9, DS-7

iVillage Member
Registered: 08-25-2008
Thu, 10-30-2008 - 4:06pm

reminds me of the short story by Kurt Vonnegut - Harrison Bergeron


http://instruct.westvalley.edu/lafave/hb.html

iVillage Member
Registered: 12-18-2005
Thu, 10-30-2008 - 4:10pm

you didn't trace back far enough to see that it wasn't my idea, i was just pointing out how your movie quote was irrelevant to the OP's idea...once again...it was NOT my idea

-Kristen

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iVillage Member
Registered: 05-14-2008
Thu, 10-30-2008 - 7:11pm
Very well said indeed!

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