Myths about the rich, the economy and taxes

I was a financial advisor for nearly twenty years. The two things I learned about the wealthy is 1. They have already made their money and 2. The government isn't going to get a whole lot more of it. The first truth means that the rich don't need to invest in the productive, risk-taking economy, unless that risk pays off for them. When the government taxes them too much, they simply remove those investments from businesses that create jobs and park them in tax-free or tax deferred investments. We once knew this back in the unproductive 1970's but apparently we have forgotten. We are suffering now because of our ignorance. The direct result of the wealthy removing assets from risk-taking investments is that those businesses deprived of capital either don't hire new people or lay people off. As Mitt Romney stated in the debate last Wednesday, "the rich are going to be just fine no matter who is president." But the economy will not. Under President Obama, the rich have profited greatly...(Read Full Post)