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Higher taxes haven't hurt the rich at all
Roughly 75% of America's wealthy are spending just as freely as they were before the fiscal cliff, a new survey finds.
By Jason Notte
Please tell us again how increasing taxes on the wealthy will completely bulldoze the economy and crush conspicuous spending. We couldn't hear you the first time over all the card swiping and receipt printing.
Before the New Year and the fiscal cliff debate, wealthy Americans not named Warren Buffett and their non-wealthy free-market advocates warned that taxing the rich would halt economic recovery and send the well-heeled packing their bags for greener pastures. On Wednesday, however, CNBC uncovered a survey that not only called that argument scatological, but found that taxes haven't affected spending by the majority of wealthy Americans in the slightest.
The Shullman Luxury and Affluence Monthly Pulse found that 55% of people making $500,000 or more said higher taxes have not impacted their spending plans. Lower that income bar to those making $250,000 a year -- the group President Barack Obama initially wanted to raise taxes on before Republican opponents haggled the new individual threshold for income tax hikes up to $400,000 -- and a full 61% said taxes have not dented their spending plans.
But wait, that must just mean they're not saving as much, right? No. Fifty-nine percent of those making $500,000 or more and 64% of the $250,000-plus earners said higher taxes haven't changed their investment strategies. Maybe they're throttling back their charitable offerings? That supposes that the rich aren't terrible at donating to charity in the first place, but the survey humored them a bit and found that 55% of the $500,000-or-more club and 62% of their $250,000-a-year counterparts weren't going to let taxes affect their giving.
But those aren't overwhelming majorities, so someone must be feeling the pinch, right? Not as many as you'd think. Less than a quarter of high-wage earners said they'd reduce spending as a result of taxes.
So what happened to all that pre-election, pre-cliff bluster about the rich not feeling rich anymore and being persecuted by looming tax hikes? Well, as a sporting goods company with dubious sponsorship partners so inelegantly stated, “winning takes care of everything.” Though about a third of those making $250,000 are pessimistic about the economy, another third are very optimistic about the economy. Among those numbers, those who own businesses are way more optimistic than those who don't.
The rich appreciate all the support through those trying fiscal cliff days but, if you'll excuse them, they have a few more things to shop for before they'll have time for you again.
Roughly 75% of America's wealthy are spending just as freely as they were before the fiscal cliff, a new survey finds.
By Jason Notte
Before the New Year and the fiscal cliff debate, wealthy Americans not named Warren Buffett and their non-wealthy free-market advocates warned that taxing the rich would halt economic recovery and send the well-heeled packing their bags for greener pastures. On Wednesday, however, CNBC uncovered a survey that not only called that argument scatological, but found that taxes haven't affected spending by the majority of wealthy Americans in the slightest.
The Shullman Luxury and Affluence Monthly Pulse found that 55% of people making $500,000 or more said higher taxes have not impacted their spending plans. Lower that income bar to those making $250,000 a year -- the group President Barack Obama initially wanted to raise taxes on before Republican opponents haggled the new individual threshold for income tax hikes up to $400,000 -- and a full 61% said taxes have not dented their spending plans.
But wait, that must just mean they're not saving as much, right? No. Fifty-nine percent of those making $500,000 or more and 64% of the $250,000-plus earners said higher taxes haven't changed their investment strategies. Maybe they're throttling back their charitable offerings? That supposes that the rich aren't terrible at donating to charity in the first place, but the survey humored them a bit and found that 55% of the $500,000-or-more club and 62% of their $250,000-a-year counterparts weren't going to let taxes affect their giving.
But those aren't overwhelming majorities, so someone must be feeling the pinch, right? Not as many as you'd think. Less than a quarter of high-wage earners said they'd reduce spending as a result of taxes.
So what happened to all that pre-election, pre-cliff bluster about the rich not feeling rich anymore and being persecuted by looming tax hikes? Well, as a sporting goods company with dubious sponsorship partners so inelegantly stated, “winning takes care of everything.” Though about a third of those making $250,000 are pessimistic about the economy, another third are very optimistic about the economy. Among those numbers, those who own businesses are way more optimistic than those who don't.
The rich appreciate all the support through those trying fiscal cliff days but, if you'll excuse them, they have a few more things to shop for before they'll have time for you again.
