Hard work = $250,000 ?
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| 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?


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I am
Budgeting and sacrificing are two very different concepts. Sure I agree, at 250 in many areas of the country, you can't just spend willy-nilly, with no cares in the world. But I think "sacrifice" is a little too strong a word. A three bedroom in a nice neighborhood with a postage stamp size lawn instead of a five bedroom on a half an acre in a less good one isn't IMO a sacrifice. A compromise, certainly, but not a sacrifice. KWIM? Not getting the top of the line Mercedes, "only" going to a nice restaurant once a month, buying generic most of the time - similarly, not sacrifices.
At 250 all ones basic needs can easily be met.
>>As far as taxes, I like how the Swiss do it. I think we should follow that model. <<
Do tell. What do the Swiss do? And what do you like about their system?
I don't agree with or follow the logic of calling a progressive tax a "penalty".
>>But, the fact is that IF you (general) make $250,000/year, THEN you are making MORE money than 95% of the country. And, if someone making that much money wants to say they are "struggling", then I still say, "Can you imagine how the other 95% of the population feels?" That was my point. <<
And a good one, BTW.
>>I have had a lot of jobs and it is the ones which paid the least that I worked the hardest. OR to look at it another way, if you have a strong work ethic you should be working hard for any amount of money. <<
That's worth repeating! ITA.
>>you are living free and easy and have all kinds of disposable income to dispense with and even much more to dispense with to support everyone else making less.<<
I think it's a bit of a leap to go from someone (like me) saying people who make more have more disposable income to people who make more are living "free and easy".
Personally, for me one of the most poignant examples of knowing I don't struggle financially is that when my husband was hospitalized, I could drive to the hospital without having to worry about the car breaking down half way there or paying for the extra gas, I didn't have to rely on public transportation, trains that left once per hour, anxiety about missing the train, finding a ride back and forth to the train station at odd hours, not being able to afford a cab, etc. I could buy a lunch at the hospital if I unexpectedly had to stay longer than I had anticipated, I could afford the cost of parking or paying the hospital valet, I could stay at the local hotel if need be knowing that I could pay for it - eventually, I had the flexibility to take the time off when it seemed essential.
I haven't lived much of my life in a situation where these things were true, so I am well aware of how luxurious they are. When you are dealing with the logistics of out of town hospitalization and life and death illness, it's more than enough to handle. Factoring in inadequate finances, inflexible job hours, and attitude/judgment from others makes a bad situation, overwhelming or even impossible to handle.
Life isn't easy, ever. Money is not some sort of golden ticket to happiness, but not having a modest amount of money is exorbitantly stressful. Disposable income is a truly great thing that brings empowerment and choice. When you struggle financially, being told - hey well, if you just tried harder - makes a bad situation worse, IMO.
Quite certain, I haven't make my point, sorry, I'll clink post anyway. Let me know if you can make any sense of it.
well, i'm not really talking about your skimping on the top of the line mercedes or 5 BR on an acre type "sacrifices" from those making >250K.
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