Written by Barack Obama says he wants to increase tax rates for millionaires, whom he says are paying lower rates than taxpayers with lower incomes. Used as an example is Warren Buffet, who says he pays a lower tax rate than his secretary. This is sheer buffoonery!
First of all, how does Warren Buffet know the tax rate for his secretary? Did he prepare her tax return? Has she released her income tax return? Is the 29% rate claimed for her $60,000 salary the gross rate or net rate? Does she have deductions for kids or a home or charity donations? Is she single, married, head of household? All of these things affect her actual tax rate, as well as his. Let’s compare apples to apples, ok?
The 17% tax rate claimed by Warren Buffet for his own tax return is also extremely misleading. The tax rate, if applied to his gross income, would be much higher. However, he gives away much of his earnings to charity, which reduces his taxable income. Much of his income also comes from dividends, which are only taxed as capital gains at 15% AT THIS STAGE. That corporate income is also taxed at the highest corporate tax rate in the world! So anybody that believes he’s really being taxed at 17% is simply not paying attention, including Buffet himself. When you add the double taxation of his corporate earnings plus the percentage of income he gives to charity, his real “tax rate” comes to a MUCH higher number.
Worst of all is the idea that Barack Obama is going to pass a bill (Who is he freaking kidding? He couldn’t pass gas right now and has become, effectively, a lame duck) that will increase the tax rates on millionaires only, to make sure they pay a “fair” rate. Is it even possible a sitting American President is that stupid? All the millionaires need to do is donate less money to charity, or invest less money that results in double taxed income, and his apparent tax rate will increase. What will the result be? A little more money to the gaping shit hole that is our federal government, while worthy charities across the country will see their funding decimated. Not to mention all the jobs that will be lost because companies could not raise money for startups and/or expansion.
The bottom line? The rich can afford to pay people who are much smarter than anybody that works for Obama to arrange their financial affairs. Passage of anything like the President is requesting will just result in one more hard body slam to the American economy; one that will hit the middle class and the poor hardest. Will somebody please shut up this clown?