Post by maryri116 on Dec 5, 2012 10:59:20 GMT -5
For centuries, Americans have adhered to the Puritan work ethic’s emphasis of hard work and prosperity, and have used it as a means for economic growth and capital creation. However, the proposed tax hikes on the wealthy associated with the “fiscal cliff” threaten to mitigate this deeply rooted concept of self-achievement. As negotiations continue in Washington over a plan to avoid the “fiscal cliff” – the combination of tax hikes and spending cuts scheduled for January 1st – one big sticking point is whether to raise tax rates for high-income Americans. Mired in political gridlock, Republicans are pushing for all tax cuts to be extended, whereas many Democrats are hoping to extend tax cuts for all but the wealthiest 2%, or those who earn over $250,000 per year. Although increasing taxes on the wealthy may be economically helpful in the short term, it may not continue to be so in the future. Punishing affluent individuals for their success by raising their taxes will encourage Americans to deter their work efforts, therefore destroying American society’s deeply ingrained Puritan work ethic and hurting the American people.
Raising taxes on the wealthy may disincentive affluent individuals from working hard by causing them to invest less in their businesses, consequently creating less output, and limiting new jobs and economic opportunities. Take the ultimate self-made man, Henry Ford, for example. As a pioneer of the automobile industry, Ford invested in and created numerous businesses because he wasn’t burdened with erroneously high taxes. Had Ford been subjected to the taxes faced by the wealthy elite today, it’s unknown if he still would have had the incentive to grow his business. However, it’s possible that Ford would have been discouraged by these excessive taxes and may have abandoned his Puritan work ethic values and settled for mediocrity rather than waste his time and efforts. Although a multitude of wealthy American pioneers aren’t driven by money, a good portion of those who are may figure that it is not worth the effort or risk to invest and grow their businesses if too much of the money they gain is going to be taken away by excessive taxation.
Likewise, raising taxes for income over $250,000 may deter middle class Americans from taking on another job or working longer hours. With the extra tax, individuals’ earning $250,000 take home less of each extra dollar earned and thus may not feel that additional work is worth the lower “net pay”. Although some Americans will be forced to work harder to compensate for the higher tax, others will simply feel that their time is better spent doing other things besides working such as caring for their children, spending time with their family, or pursuing other leisurely interests. In turn, these individuals’ inclination to not work hard and not be economically successful due to the tax hikes directly contradicts the Puritan work ethic.
For all one knows, the effects of the tax hikes may have longer lasting effects on the American psyche than anticipated. The mitigation of the Puritan work ethic discourages Americans from working to their fullest potential, consequently causing a decrease in American production. Without the Puritan work ethic ingrained into this nation’s brain, people’s accepted mediocrity results in a mediocre state that is unprepared for economic competition.
Word count: 544
Works Consulted:
2011 Tax Table. N.p.: n.p., n.d. IRS. Web. 7 Dec. 2012. <http://www.irs.gov/
pub/irs-pdf/i1040tt.pdf>.
Noonan, Peggy. "Noonan: Another Crisis - It's the Obama Way." Wall Street Journal 30 Nov. 2012: n.
pag. Print.
"Fiscal Cliffs Notes." Editorial. The New York Times. The New York Times, n.d. Web. 3 Dec. 2012.
<http://www.nytimes.com/2012/06/18/opinion/fiscal-cliffs-notes.html?_r=0>.
Raising taxes on the wealthy may disincentive affluent individuals from working hard by causing them to invest less in their businesses, consequently creating less output, and limiting new jobs and economic opportunities. Take the ultimate self-made man, Henry Ford, for example. As a pioneer of the automobile industry, Ford invested in and created numerous businesses because he wasn’t burdened with erroneously high taxes. Had Ford been subjected to the taxes faced by the wealthy elite today, it’s unknown if he still would have had the incentive to grow his business. However, it’s possible that Ford would have been discouraged by these excessive taxes and may have abandoned his Puritan work ethic values and settled for mediocrity rather than waste his time and efforts. Although a multitude of wealthy American pioneers aren’t driven by money, a good portion of those who are may figure that it is not worth the effort or risk to invest and grow their businesses if too much of the money they gain is going to be taken away by excessive taxation.
Likewise, raising taxes for income over $250,000 may deter middle class Americans from taking on another job or working longer hours. With the extra tax, individuals’ earning $250,000 take home less of each extra dollar earned and thus may not feel that additional work is worth the lower “net pay”. Although some Americans will be forced to work harder to compensate for the higher tax, others will simply feel that their time is better spent doing other things besides working such as caring for their children, spending time with their family, or pursuing other leisurely interests. In turn, these individuals’ inclination to not work hard and not be economically successful due to the tax hikes directly contradicts the Puritan work ethic.
For all one knows, the effects of the tax hikes may have longer lasting effects on the American psyche than anticipated. The mitigation of the Puritan work ethic discourages Americans from working to their fullest potential, consequently causing a decrease in American production. Without the Puritan work ethic ingrained into this nation’s brain, people’s accepted mediocrity results in a mediocre state that is unprepared for economic competition.
Word count: 544
Works Consulted:
2011 Tax Table. N.p.: n.p., n.d. IRS. Web. 7 Dec. 2012. <http://www.irs.gov/
pub/irs-pdf/i1040tt.pdf>.
Noonan, Peggy. "Noonan: Another Crisis - It's the Obama Way." Wall Street Journal 30 Nov. 2012: n.
pag. Print.
"Fiscal Cliffs Notes." Editorial. The New York Times. The New York Times, n.d. Web. 3 Dec. 2012.
<http://www.nytimes.com/2012/06/18/opinion/fiscal-cliffs-notes.html?_r=0>.