A 60 year old couple with a net worth of $1 million is hardly wealthy. They probably accumulated this wealth by hard work and savings.  Their net worth is probably composed of a $500,000 house and $500,000 of pension assets. When they retire, they can expect a taxable income of $20,000 to $30,000 per year from their pension assets at today’s rates and about $25,000 per year from social security.  $50,000 per year is enough to support a comfortable middle class life stile, but it is hardly a luxurious retirement.

President Obama has repeatedly implied that families with incomes in excess of $250,000 are wealthy.  There are many families in New York, Washington, DC, San Francisco and other expensive American communities who barely live an upper middle class life style on $250,000 per year.  These couples tend to be successful professionals, business managers and small business owners. If they want to retire with an upper middle class life style on $250,000 per year without touching principal, they would need financial assets of $6 million to $8 million.  In other words, a net worth of less than $10 million merely lets the retiring couple maintain a comfortable upper middle class life style.  This is the life style of the “American Dream” to which most Americans reasonable aspire.  It is not the super luxurious and sumptuous life style of the “rich and famous.”

It is unfortunate that the Progressives reject the proven economic tools that lead to general prosperity; tax reductions, less regulation, balanced government budgets, and policies that encourage individuals to be productive and responsible.  After all the mere millionaires are the most productive members of the economy.  Why do the progressives want to reduce America’s productivity by taking the hard earned wealth of the mere millionaires?  If this happens, the whole economy will suffer.