We’ve heard the talking point from the politicians. Raise taxes on anyone making more than $250,000 and you’re taxing job creators. As a result, raising taxes on the wealthy hurts jobs.
Yes, there are millions of small businesses Americans who make over $250k a year and create jobs, but what about people like me? We’re not small business owners. My wife and I are both employed by a company, but we’re constantly referred to as job creators. Do we really create jobs?
We eat out, we have housekeepers, a landscaper, someone to maintain our pool, and we hire a tax accountant. We also have the luxury of affording summer programs for the kids and the ability to buy things new (i.e. furniture). We also invest and save a significant amount of our income.
Jobs are created when money is spent or invested. This fact alone is reason to believe that the rich likely create more jobs than the poor through an increased demand for good and services. This may not be the case for everyone, but it is a fact that, on average, the wealthy do consume more products and services than the average Joe.
There are incredible amounts of money in the hands of the wealthy. Don’t get me wrong. I get that the ultra-wealthy invest large sums of money overseas, and can probably bear a few percentage point increase in taxes, but they consume and invest more than non-wealthy individuals.
What I’m talking about here is not the ultra-wealthy, but 4-person families who didn’t accumulate much just yet, but make around $250,000 a year living in a high cost of living area.
What about us?
Personally speaking, we likely created more jobs than we would have if we were not in the 1 percent. If we were not in the 1 percent, we would likely reconsider sending our son to a summer program. We’d probably search for used furniture on Craigslist. If our taxes went up by the 10’s of thousands of dollars, would we reconsider maintaining our pool ourselves? Probably. Would I consider maintaining my own lawn? Probably. Would we clean the house ourselves? Maybe.
Did we create jobs as we got wealthier? Maybe this post is my justification that we added a few.