For those who haven't read the book, the idea behind Atlas Shrugged is that the leaders and wealth creators of society retreat from an overbearing government. Without all the "do-ers" the rest of society that attempts to leach off of them slowly starts failing.
A recent story on Yahoo Finance shows that very same thing is starting to come true in America today. You can read it in full HERE.
As of 2013, 77% of Americans will pay higher federal tax rates because the cuts in Social Security payroll taxes expired when Congress passed its tax package on New Year’s Day. But the wealthiest households face the highest tax increases.
The income tax rate rose this year to 39.6% from 35% for individuals earning more than $400,000 a year and married couples earning more than $450,000.
The Tax Policy Center estimated that those who earn more than $1 million would pay an average of $170,341 more in taxes.
Federal taxes aren’t the only issue, though. Increases in state income tax rates factor into these decisions as well. Recently, California enacted Proposition 30, which raised state income tax rates to 10.3% from 9.3% for individuals making at least $250,000 and 13.3% from 10.3% for those earning at least $1 million.
To put this another way, as liberals continue increasing spending then argue that the rich need to pay their "fair share". The rich eventually get fed up and we see the 2nd part of what the article points out...
In the first three quarters of 2012, more than 1,100 people left the United States, according to the Federal Register, which tracks Americans who renounce their citizenship.
According to a 2012 study published by the Research Institute of Industrial Economics that examined the mobility of billionaires over the past two decades, “70% [of those billionaires] have migrated from higher to lower capital gains tax country … One-third of the billionaires that moved went to small countries defined as ‘tax havens,’” including Switzerland, Bahamas and Singapore.
The number of expatriates per year as gone up from a low of 231 in 2008 to 1781 in 2011 with most of them being the wealthy.
When we've built a system in which the government tries to take from those with money to redistribute to those who don't, what will happen when there are no more rich to "pay their fair share"?
Eventually we'll come to a point where one of two things will need to happen, either people will need to give up their hand outs and finally start pulling their own weight or it will shift to even higher burdens on the middle class. As those burdens continue to weigh down the middle class how many will continue to work and pull that wagon when those choosing not to work have a higher standard of living?
Think about this, the average household on welfare gets $61,194 in 2011. The average household income during that time is $52,377. So most families could actually come out ahead of where they are today by quitting their jobs and living off the rest of us.
Eventually we're going to reach a point where everyone is in the wagon and there isn't anyone left to push. What then?