Higher taxes stifle initiative. I think we all would like to come up with an idea that would make us rich. But if the government would tax us at a very high rate, that may throw a wet blanket on our enthusiasm.
Allow me to make a hypothetical case: A prominent doctor believes he has a cure for cancer, but he would have to risk everything he owns to develop his idea. If the tax rate on what he would make would be too high, he might well say, “I can't take the risk.”
I'll take this a step further. Most people would say if he has a cure for cancer, that would be such a wonderful thing he shouldn't have to pay any taxes.
There are pros and cons to taxing the rich. There are more cons than many people realize.
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