Thursday, September 22, 2011
Obama’s New Tax Proposal is closer to a “Joe the Plumber Tax” than a “Buffett Tax”
During his third presidential debate, Obama had suggested that his “friend and supporter Warren Buffett” and all others who earn more than $250,000 could afford to pay more taxes so that he then hand out tax cuts for those earning less than the above amount. This reply was in response to a heated back and forth with McCain in defense of his infamous “spreading the wealth” comment which he had made to Joe the Plumber on the campaign trail.
Last month, Warren Buffett wrote an op-ed in The NY Times in which he lamented the false fact that he pays less tax percentage-wise than his secretaries. Buffett whined about being “coddled”, “spared”, and excluded from those who are forced to “share sacrifice” and ended with a plea for taxes to be increased on anyone earning more than a million dollars a year.
How considerate of Buffett to throw together those earning one million dollars a year, with individuals like him who earn close to one million a week! Many of these “millionaires” whom Buffett stamped as rolling in extra dough are actually struggling owners of small businesses for whom it’s beneficial to file their taxes as individuals. Adding an additional tax on their already overburdened backs is akin to a death blow for many. But who cares? Obama and his cronies certainly don’t.
Our intelligent president pounced upon the brilliant suggestion of his good friend after frantically seeking a reliable-sounding basis upon which he can announce another tax increase. Obama was desperate for the federal government to increase their income and thus pay off some of their debt in the hope that it will lead to a free pass to spend some more. In the ultimate act of thankfulness, Obama named his new money-grab the “Buffett Rule” with the explanation that “Warren Buffett’s secretary shouldn’t pay a higher tax rate than Warren Buffett.” The rule basically stated that “People making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay.”
As Doug had already mentioned, AP had fact checked and found Obama’s statement, which was an almost verbatim repeat of Buffett’s claim, to be untrue.
Despite it being a blatant lie, Obama hasn’t backed off from his proposed plans. Nor has it dawned on him that if a specific group is overtaxed one should simply lower their tax rate rather than raising everyone else’s taxes so that everyone should be equally overtaxed. Although Buffett’s secretary may be overtaxed, so are most individuals in all brackets. Nevertheless, a low-income earner is forced to part with a smaller percentage of their income than those earning more than her.
Obama’s talk of removing loopholes is pure talk for it would affect many of his friends who’ve funded his past campaign and he’s relying on for 2012. Most of them are millionaires and billionaires who pay little or no taxes either because of loopholes and exemptions, or are flat out tax cheats. As Governor Palin had pointed out on Hannity last night, Berkshire Hathaway which is owned by Obama’s “friend” Buffett, currently owes the federal government over one billion dollars in back taxes which are almost a decade overdue. Buffett should thus send in the check plus whatever additional figure his heart desires instead of whining all day that he’s under taxed. Additionally, Obama’s buddies at GE got away scot free from paying any taxes “legally” via loopholes and exemptions despite the over fourteen billion dollars they took in. Actually, not only don’t haven’t they paid any taxes, they received over three billion dollars’ worth of tax credits courtesy of hard-working small business owners who haven’t gotten any connections with those in power.
So yes, there is a small group which comprise less than one percent of those who earned over a million dollars that have paid zero or close to zero in taxes. If you want to take them on, then by all means go ahead! Start with some of your buddies including GE, Buffett, GM, etc. and leave everyone else alone.
The Buffett Rule and any new tax hike are thus unnecessary, because the only ones that would actually pay the higher rate are those who are already way too overtaxed. Obama’s buddies will wiggle their way out while Buffett and others will leave it for the IRS to challenge in ten years from now. On the other hand, the Joe the Plumbers and other struggling shop owners will be forced to spit up the change.
It would be far more accurate and proper for those who oppose this new taxation to refer to it as “The Joe the Plumber Tax” because that is the class that will be hit the hardest. Raising taxes on all “millionaires” will be the equivalent of a death blow for many of the small guys while just an annoying splinter for the big guys like Buffett; that is if they’ll even bother to pay their share. Essentially, it will benefit those in the position like Buffett for it would ensure that none of the little guys will be able to threaten the security or standing of their companies.
This will further the creation of a socialist state where the rich remain rich while the rest of the nation is trapped in their current economical bracket. Entitlements have already ensured that the poor will remain poor. Stifling businesses and the middle class will ensure that they shall never rise to the top but remain stagnant or sink.
This article has been cross-posted from Conservatives4Palin.