Surcharge on Millionaires

The Journal-Sentinel on December 6, 2011 asked whether readers favor a surcharge on millionaires that would “pay” for the extension of the payroll tax cut. After considering this question for perhaps a nano-second I decided that I definitely favor this surcharge. The payroll tax cut could mean approximately $1,500 annually or about $125 per month for those who earn less than $1 million. I thought I would see how $125 might be spent by the over-$1 million population as opposed to the 99% who earn less that $1 million.

Now where might the over-$1 million population shop? Hmm? What might $125 buy at Tiffany’s? I found that Tiffany’s had 18 items on their Under $250 link that cost only $125. Sparkly baubles at bargain prices to cheer the millionaires.

Now, as to the under-$1 million population – where might they shop? Macy’s is somewhat pricey, but what could $125 buy on a link at Macy’s? It seems that the Kids link has about 350 items under $125 in the Coats & Cold Weather pages alone. Jackets, scarves and mittens to warm toddlers, kids and teens in the under $1 million population.

It doesn’t take an economist to see that the purchase power of 99% of the population might actually have a considerable impact on the GDP and the U.S. economy, not to mention middle and lower income families.

If a surtax on millionaires allows an extension of the payroll tax cut for average working people, I say yes, without a doubt, to the surtax.