Obama Has Buffet Cred
I was once a proponent of a flat tax system and I still am to some degree. If you have seen the news in passing recently you know that Obama and Warren Buffet have talked a lot about making the rich pay more in taxes. They claim that Buffet paid less percentage of his income than his secretary as an example. For this reason, they want to tax the rich. I want to examine this philosophy and see how it flies.
First of all, they did not mention one iota about lowering the taxes of his secretary to the rate at which Mr. Buffet had to pay did they? No, they want you and me, the little people, to keep paying the high taxes because they understand that the middle class pays the bulk of all the taxes in the country. How much more do you think the U.S. coffers would rise if you were to tax folks who make more than $1,000,000.00 per year? It isn’t as much as you think. This is just a ploy to start class warfare and to find a nail to hang their party’s campaign on. It really sounds appealing to the little people but it doesn’t really do that much.
The truth is, the tax rates for the upper 1% of the income earners are very progressive as it stands now and much higher than what you and I pay. Where they get their numbers is with the amount of write-offs and tax incentives they get for using their money in certain ways. However you slice it, the rich have more money to use so that they can shelter if from the IRS. This money they use goes back into the economy in several ways. It can provide capital through investment, jobs through corporate spending, benevolence through charity, and so on. If you take away those incentives, you will take away these actions that spurs our economy, creates jobs, and helps people in general.
Now, I would still like to see something more akin to a flat tax system but with careful thought on how to do so without punishing the people who put their money at risk to both get wealthier and to grow the economy. This should not be done with the idea in mind to right some evils of our system but that is how it is being subtly portrayed. They play on our emotions by framing certain arguments in short sided and simplistic ways that cause knee-jerk reactions. What do you think led to the creation and spread of Communism? This is it and this is what we are seeing, the attempt to spread Communism Obama style.
Let me ask you this, how many of you work for a rich person or a rich corporation? What do you think they are going to do when their discretionary income is reduced, especially in a bad economy? Remember, they are not saying anything about lowering your taxes, just trying to make you feel better by raising someone else’s.