So, Warren Buffett Pays Less Income Tax Than His Secretary, Huh?
Don’t you agree with the president that everyone should pay his or her fair share? I know I do. So, I’m on board with the 47 percent of households who aren’t paying taxes starting to chip in for the better good. You see, the non-partisan Tax Policy institute (http://ow.ly/6yZWe) had originally estimated that in 2009, 38 percent of US households would owe no payroll tax in 2009. That was BEFORE the prez along with Pelosi and Reid forced through the (updated number) 829 billion dollar stimulus law. Laden with tax incentives, failed job-creating programs, thousands of pieces of pork and out-of-control spending of non-existent money, this law pushed that 38 percent up to 47. You read right; 47 percent of US households bear ZERO tax burden. So, what to do if you’re president Obama? Go after the evil rich and the evil corporations. You know, the people who employ us. He wants THEM to pay their “fair share.” At first, he went on and on and on about how the rich can “afford to pay a little more.” Those who were “most fortunate” could afford to “pay a little more.” That didn’t resonate with the American people. We believe in hard work and achieving success. We believe we should keep the largest amount of our earnings as possible while still funding a necessary government. We do NOT believe in punishing hard work, ambition and determination. That plan failed. The American people rejected, out-of-pocket, the idea that those who have earned a lot were somehow the bad guys and expansive, overbearing government was the right path. What to do if you’re president Obama and/or the rest of the ultra-liberal power structure. You know, the folks who truly believe they’re smarter than we are and know best what we should eat, drink, drive, earn and how we should spend our money and our time. Then a light bulb appeared over their heads. They had a plan. They decided, “let’s pretend the ultra-rich like Warren Buffett are paying less income taxes than their secretaries.” Yeah, that’s it. It wouldn’t matter if it’s true — just that it would be effective. They started out with Buffett writing an op-ed (http://ow.ly/6yZUC) complaining that he and other billionaires are not paying enough and that the government has been coddling the mega-rich for far too long. He probably did it just on a whim. Doubtful it was a plan between the administration and him. That would be crazy. Of course, they idea that his secretary is paying a higher income tax rate than Buffett is lunacy and just not true. But, it’s a great narrative if they can get the American people to buy the lie. Let’s make it seem plausible and sell it as if it’s tax rate versus tax rate. Anyone with half a brain would balk. Say what? This guy is worth 50 billion dollars — with a B! That would be disgusting. His poor, unappreciated secretary. Now, time for a reality check. Fact is, Warren Buffett doesn’t take a pay check. If he did, he’d pay the top marginal rate of 35 percent on his income. His secretary DOES receive a pay check and therefore DOES pay income tax. Therefore, his secretary could be at the lowest possible rate (above zero percent) and still pay a higher rate than her boss. But, I thought he was worth 50 billions dollars. How does that happen if he has no income? Buffett’s income comes from dividends and capital gains. They are taxed at 15 percent. “Well, that’s not fair,” you might say. Hold on just a minute. Consider where the money Buffett invests comes from. It’s not like he was born with buckets of money (and that would be a lot of buckets) just waiting to be invested. He had to either a. earn it through paychecks with which he would have paid the progressive tax rate the rest of us pay or b. from other investments on which he would have paid 15 percent. So, it’s safe to assume, if Buffett didn’t simply find the money, he’s paid a tax of some sort at least once but possibly over and over again as he reinvests it. I hope this clears up the lie that he is somehow paying less in taxes than his secretary. It’s a lie the president hopes will allow him to draw people who were reticent to ask the rich and corporations more toward his point of view which of course is bigger government, more power and control and less freedom. It’s great to be free to agree with the president or disagree. But, keep in mind, if you’re siding with him on the idea that the rich aren’t paying their “fair share” and need to pay more; the president nor congress has any plan to cut you a check and send it to you. They would only increase the pace at which they spend money they don’t yet have. One last point that is worth mentioning. I have never ever been offered a job by nor have I ever worked for a poor person. The rich and/or corporations are who employ us. Attacking their income or cash flow would only serve to increase the unemployment rolls and continue to insure the economy will stagnate. Thoughts? Post away. If this makes sense to you — why not click on “share?” http://www.facebook.com/notes/joe-pags/so-warren-buffett-pays-less-income-tax-than-his-secretary-huh/10150319231973950 Pags