All This Anger Against the Rich May Be Unhealthy

Paul Sullivan of the NYT controversially writes that an obsession with punishing the wealth could have real health detriments. Here are a few excerpts:

"The vehemence in these e-mail messages made me wonder why so many people were furious at those who had more than they did. And why are the rich shouldering the blame for a collective run of bad decision-making? After all, many of the rich got there through hard work. And plenty of not-so-rich people bought homes, cars and electronics they could not afford and then defaulted on the debt, contributing to the crash last year."

"A big concern among the wealthy right now, their advisers say, is not populist anger but how it might translate into tax-the-rich legislation on the federal and state levels. Their concern is twofold.

The first is that any tax increase has a direct impact on the income they withdraw from their portfolios. More money going to the government means less to live on. “They’re very concerned about taxes going up,” said William Woodson, managing director at the Family Wealth Management group at Credit Suisse. “The percent that goes to taxes is significant if it’s a 15 percent capital gains vs. 25 percent capital gains. It makes a big difference.”

The second concern may be disheartening for those who are angry at the rich but like the museum exhibition or scholarship they pay for: increased taxes could cut into donations. While there is not a direct correlation between tax deductibility and personal donations, there is a correlation between increased taxes in a continued weak economy and charitable giving."

Read the NY Times article here.