Where I stand - on raising taxes on the wealthiest Americans

Disclaimer: I am using simple figures for the purposes of demonstrating the differences between investing in a business versus in a money market account.  Actual tax rates may vary and returns are not guaranteed.
I often run across people that look at tax rates alone and state they feel it is unfair that wealthier people pay a lower tax rate (though higher dollar amounts) than they do.  While I understand the feeling, I can't help but think they are not looking at the big picture.  I am one of the lucky middle class that gets to a pay a high percentage in taxes.  It may seem in my best interest to support raising tax rates on anybody that makes more money than I do, but I do not support the position and I'd like to explain why by offering the following scenarios:


Scenario 1 - Someone with one million dollars puts that money into a money market account that gives them an annual return of 5%, for a profit of fifty thousand dollars.  That amount is taxed at a rate of 15%, for a total of $7,500 that gets sent to the government and $42,500 going back to the investor.

Scenario 2 - Same situation as above, but the tax rate has been increased to 20%.  Now $10,000 gets paid in taxes with $40,000 going back to the investor.
In this instance, we see that raising the tax rate on wealthy Americans would result in more money being generated for the government.

Scenario 3 - Instead of using a money market account, that same person uses their million dollars to start a business and hire ten people.  Half of the money is spent on equipment, which has a 6% sales tax rate, for $30,000 in sales tax captured by the government.  Each employee gets paid fifty thousand dollars and pays taxes on their earnings at a rate of 20%.  Each of the ten employees ends up paying $10,000 to the government, for a total of $100,000 dollars to Uncle Sam from the employees.  The venture succeeds and the investor recovers their initial investment, plus a profit at a rate of 10%, for a total profit of $100,000.  That profit is taxed at 15%, for a total of $15,000 going to the government and $85,000 going back to the investor.  Combined taxes from the investor, sales tax and the employees of $145,000 paid to the government as a result of the new business.


The first scenario is clearly not ideal for the treasury, as it results in only $7,500 being brought in.  Raising the tax rate to increase that amount seems ideal to the short-sighted person.  However, we can see that the third scenario results in quite a bit more money being sent to the treasury.

In order to get that third scenario, investors much be encouraged to take risks and start new businesses versus opting for safe harbors for their money.
This is the reason that some people are opposed to raising taxes on the wealthy.  It isn't because they want to allow the wealthy to keep more of the money that they make, it is because they want to encourage the wealthy to take those risks.  If someone with one million dollars will end up with a net increase that is roughly the same by either taking on risks or by playing it safe, they will play it safe. 

We need wealthy people to invest and take on risk to help grow the economy and create jobs.