Why Do the Wealthy Fret about Taxes?

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It's clear that a smaller portion of the wealthiest's income is diverted by taxes as compared to the "moderately rich". It is also true that in terms of total income, the lower-middle class and poor generally pay less in taxes. At the same time, it's hard to argue that small taxes burden the poor more than the wealthy for the simple fact that the wealthy can by definition afford to pay them and the poor cannot.

Yet, it is the wealthy that fret about taxes. Why?

80% of it may come down to the simple fact that for most Americans, paying taxes is passive. Taxes are silently added and automatically withheld so they are not noticed. If an employer gives an employee a check for $1,000, the employee is going to get to keep most of that money unless something exceptional happens. They might have really been paid $1,300, but they'll never see that $300 withheld for taxes so it won't bother them much.

The wealthy tend to run their own affairs, however, so in that same period the business owner might pay himself $13,000 but he has to explicitly send in a checks to the IRS, local property district, etc. So while the employee feels like he's making a $1,000 and rarely gives a second thought to the $300 in taxes, the wealthy employer feels like he's making $13,000 but that the government is taking $3,000 in money. The latter not only does, but must give a lot of thought to taxes.

If we made taxes explicit for everyone, there would be more awareness and discontent.

If we made taxes implicit for everyone, there would be less.

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