The Big Lie Warren Buffett Style
Truly, if I hear anyone whine one more time about poor Mr. Buffett paying a lower tax rate than his secretary I think my head will explode. This is completely misleading and Mr. Buffett knows it as do all the media flacks driving this story. It a lie of omission and here is why.
People like Mr. Buffett derive the majority of their income from capitol gains. For all you public school dropouts think of capitol gains as interest earned on money that he has placed at risk in the marketplace. He invests his money in the stocks of companies that he believes will either grow or produce the next “big” thing. For the privilege of using those dollars the company pays him a dividend.
To help get folks like you and me to invest our hard earned dollars, dollars that we can lose altogether, the tax code treats these capitol gains differently than ordinary income. The incentive is that these gains will be taxed at lower rates than your ordinary income (wages etc.).
Mr. Buffett and his media lackeys are fully aware of this yet choose to spin their knowledge in order to promote the false premise that ”the rich don’t pay their fair share.” In fact, according to the IRS the top 20% of taxpayers pay the majority of taxes collected. Nearly 50% of Americans not only pay no taxes but get money back in the form of refundable credits.
The Buffetts of the political world justify the raising of tax rates, which will not affect them in the least because of how they receive their income, by claiming the increase in revenue is needed to offset the debt/deficit. It’s not fair Mr. Buffett claims that in having so much success he has to pay so little. I have a solution. It is quick, easy and guaranteed to sooth his politically correct guilty conscience.
Mr. Buffett and all his billionaire friends can right this very minute write a check to the U.S. Department of the Treasury in any amount they chose. The program to accept this money has been in place for years and he knows it. Isn’t it interesting though that rather than “pay his fair share” he instead wants your taxes to be raised. So much for the idea that liberals care about the little guy.