Vail Daily editorial: Why pick on the ‘rich’?
Vail, CO Colorado
Readers who have been watching the recent congressional/presidential brouhaha over extending the federal tax rates passed earlier this decade have heard a lot of about the injustice of continuing those lower rates for the “rich” – meaning couples with household incomes greater than $250,000 per year.
We’re staying out of most of this argument, but we do want to weigh in on one element – that lower tax rates for wealthy Americans won’t create jobs, a canard in ample supply on TV, newspapers and the Internet.
The Vail Valley’s economy would beg to differ with that argument.
Putting more disposable income in the hands of everyone is a good thing, by and large, but that income can be especially effective when put in the hands of people who spend and invest in big-ticket items.
It may come as news to class warriors, but places like the Vail Valley wouldn’t exist without wealthy clients. Those are the people who buy meals at restaurants, buy art at galleries and, in better times, buy vacation homes. All that economic activity creates jobs for people and opportunity for entrepreneurs.
In short, our whole valley is “trickle-down” economics in a nutshell. So is every other resort community in the known universe.
We aren’t huge fans of the tax rate/unemployment benefit compromise hammered out between President Barack Obama and Republican senators – we’d have preferred a package that found spending cuts instead of just more hits to a federal budget already groaning with debt.
But the country’s economy would have been hurt with higher tax rates for all Americans next year – and people still unable to find work would have been worse off, too.
The problems of taxing and the economy are complex, but we’re glad to see that the Vail Valley’s best customers will be able to maintain some of the money they spend here, instead of sending it to Washington, D.C.
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