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

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iVillage Member
Registered: 04-01-2006
Wed, 11-05-2008 - 3:06pm
thank you for that post.. i am also a med student and mom and working SO

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iVillage Member
Registered: 04-01-2006
Wed, 11-05-2008 - 3:15pm
" Quote: "I don't want to be tagged as "rich" if I earn $250,000. In some parts of the country, this amount doesn't even buy you a one bedroom, one bath condo. 250,000 is not a lot of money compared with someone who earns 5-10 million a year or more, say a celebrity or star athlete.

Believe it or not, there are people who make that amount who are making sacrifices to be able to put money in savings and pay college tuition."


IMO, if they are making that kind of money and can't pay bills, then they are living beyond their means.

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iVillage Member
Registered: 04-01-2006
Wed, 11-05-2008 - 3:16pm

i am new (and very late) to this thread, but just wanted to say i am enjoying reading the entire thing.. even the parts i disagree with.

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iVillage Member
Registered: 01-18-2008
Wed, 11-05-2008 - 3:17pm

I do think it is unfair to assume that those who make more must be working harder.

 

 

iVillage Member
Registered: 04-01-2006
Wed, 11-05-2008 - 3:23pm

i can see why it might be an attractive or simple solution type of idea to tax the "wealthier" at a higher %age, because in theory they can absorb the financial sting better, what with all of their l"less work" and "disposable income".

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iVillage Member
Registered: 04-01-2006
Wed, 11-05-2008 - 3:31pm

"By using the funds from the taxes programs can be increased for those less fortunate.

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iVillage Member
Registered: 09-08-2006
Wed, 11-05-2008 - 3:32pm

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iVillage Member
Registered: 04-01-2006
Wed, 11-05-2008 - 3:46pm
" I do think it is unfair to assume that those who make more must be working harder.

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iVillage Member
Registered: 01-18-2008
Wed, 11-05-2008 - 3:55pm

As I mentioned, I think that in an ideal economy everyone should pay the same % in taxes.


However, this is not an ideal economy and there are people out there who are really really hurting.

 

 

iVillage Member
Registered: 09-23-2005
Wed, 11-05-2008 - 5:08pm

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