Just a Gimmick
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Recently, President Obama has been running around the country promoting the “Buffett Rule.” This is a class warfare gimmick that has nothing to do with the national debt, which has exploded during the Obama administration and which threatens the financial viability of our country (think Greece).
Setting aside the matter of the proposed rule itself, I think what it says about its namesake, Warren Buffett, is very interesting.
Mr. Buffett’s company is Berkshire Hathaway, and his secretary is an employee of that company. As such, her pay is subject to IRS rules governing “ordinary income.”
On the other hand, Mr. Buffett chooses to be an investor in, rather than an employee of, Berkshire Hathaway. As such, his considerable income is subject to IRS rules governing capital gains, which are taxed at a lower rate than ordinary income. If he made himself an employee of that company, his income would be automatically taxed at a higher rate than his secretary. All he needs to do is make himself an employee of his own company.
Why would he choose not to do this if he really thinks he should pay a higher tax rate than his secretary? The answer is that, in spite of what he says, he really wants to pay lower taxes, not higher. I guess what he really wants is for “other people” to pay a higher tax rate, not himself.
I’ve been a past admirer of Warren Buffett, but this conundrum makes him a hypocrite. Maybe that’s why he and our president are such pals.
John Rowerdink
Pinehurst
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Comments
Easygoing 1 year ago
Nonsense, Mr Buffert is an employee of the company and earns a salary that he reports (somewhere around $100,000 a year). Certainly the writer knows each category of income must be reported correctly (e.g. dividends, capital gains, etc). To misrepresent your income is against IRS rules. What a silly statement. Mr. Buffet is fully following the current regulations. Let the political spin on everything begin.
Arestorer 1 year ago
Above my pay grade.....I thought if you made money, it was income....You can still buy the same things with said moneys....Said moneys are still US legal tender,Right?
fugitiveguy 1 year ago
The real lie here is that increasing the tax rate on "millionaires and billionaires" will have any meaningful effect on the deficit. If I am wrong, Jim Heim will come along anytime now and prove me wrong. It is more of what team "O" does best. Class warfare peddled to his true believers. If we had a real national media they might point this out. The debt will not be solved without significant cuts in spending with or without tax increases. No president has driven the debt up as much and as fast as the current one. Where is the MSM? Missing in action as usual.
AFCHIEF 1 year ago
IF AND JUST IF, Obamanation gets his way and passes the Buffet Law it only brings in and additional $4billion dollars of taxes.
WHY GIVE MORE TAX MONEY TO A GOVT that cannot stop wasting our money
fugitiveguy 1 year ago
Chief is that 4b annually or over 10 years. Either way it does nothing to help the deficit without spending cuts. Presidents are often called liars but in this case it fits. This president had a lot of potential but he squandered it.
AFCHIEF 1 year ago
fugitive, that is $4B per year. Obama wasted that much money on companies like Solyndra.
fugitiveguy 1 year ago
From what I have read we are accruing 1B just in interest on the debt daily. So, it really is a joke. Just more class warfare and election year gimmicks. Of course Barry has been campaigning for re election since day one. When he hasn't been golfing that is.
Bentpan 1 year ago
The thing I don't understand is if Buffet's onboard with this and he says he is, WHY is he fighting tooth and nail not to pay his back taxes of roughly $2,000,000,000 (yep $2 billion) ?
Thatcher 1 year ago
fugitiveguy (2 hours, 38 min. ago)-- The "Buffet Rule" would collect $4.7 billion a year ($47 billion over 10 years). http://www.reuters.com/article/2012/04/16/usa-tax-buffett-idUSL2E8F9I9I20120416. Mr. Rowerdink is correct: this is a gimmick, and quite frankly, a stupid waste of time. And you are correct on what our government pays just on the interest of our national debt: http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm. Be well!
native 1 year ago
OK instead of pointing out what wii NOT work, how about some suggestions on what will. I personally would like to see the Buffett rule passed in conjuction with a federal budget reduction of at, across the board, least 5% a year, manditory.
skylinefirepest 1 year ago
Jimmy Heim just loves the Obaminator and thinks that the more the government spends the better off the country is. And talks about the "1 percenters" not paying their fair share and so on. He still hasn't told us how the perks and tax dodges that the rich get doesn't seem to be really working for them....such as why with all the deductions and so forth the top ten percent of the country pays about seventy percent of the tax!! For that matter he refuses to answer my couple of simple questions! Such as could he pay for his house and car and groceries by borrowing forty percent from China and other people that might not really like him!!! If I were a Moore County Democrat I'd be looking for another leader 'cause Jimmy ain't smarter than a fifth grader in math!!!
The_AnonymusProfit 1 year ago
Actual meaningful debt reduction.
IE EPA, DOE, DOI, DOTres, etc etc.
Budget becomes balanced in 5 years, Budget shows surplus in 10, Federal deficit payed off to all debtors in 20 years.
Thatcher 1 year ago
skylinefirepost-- He will not answer your questions because he has no answer. And native, you are on the right track (with the exception of your support of the Buffet Rule). If we reduced spending on each federal program each year for 10 years by just 1% a year (not even the 5% you suggest), the savings would dwarf the Buffet rule receipts ($7.5 trillion vs. the Buffet Rule $47 billion). http://www.huskermax.com/vbbs/showthread.php?20247-Connie-Mack-quot-Penny-Plan-quot-Yet-another-great-Republican-plan-in-the-Democrat-desert; http://conniemack.com/issues/penny-plan. Raising taxes 100% on everyone would not put a dent in our national debt. The problem is federal spending, not insufficient tax revenue. Obama's proposed YEARLY deficits of over a trillion dollars are of record. Subtract $4.7 billion (the Buffet nonsense) from $1 trillion, and your YEARLY deficit under Obama is $9,530,000,000.00 (Nine billion, five-hundred thirty million). Over a decade with the Buffet Rule, the national debt would grow by at least another $9.53 trillion (or more) if spending is not reduced.
Thatcher 1 year ago
native-- My post above is just one of many ways to reduce spending. Now let's address revenue (tax receipts). Increasing federal revenue in a meaningful way (not the Buffet Rule) requires real growth in the private sector...where there are more taxpayers and less people relying on monthly government checks. Here, the Fair Tax ( http://www.fairtax.org/site/PageServer ) or a variation of several proposed flat-taxes would increase growth in the private sector and result in more government revenue. This increased revenue, however, would mean nothing if Congress decided to create new spending programs to achieve the same results as their current programs. But my guess is, most Americans will soon say "no more spending." Combine the reduced size of the federal government with increased revenue, and we can all survive. Short of that, hello Greece.
Thatcher 1 year ago
Good lord, what a stupid decimal typo I made above to skylinefirepost. Deducting $47 billion from $1 trillion is $953 billion, not $9 billion, five hundred thirty million. Sorry for the decimal typo.
fugitiveguy 1 year ago
where are the lefties?
Thatcher 1 year ago
fugitiveguy-- The lefties will soon be here, talking about "fairness." In today's parlance, "fairness" means "give me more taxpayer money."
Thatcher 1 year ago
And for those liberals who think the Buffet Rule is the answer, start here: http://www.usdebtclock.org/. Then tell us how $4.7 billion a year can address this problem. If you want to discuss tax rates, investment income, deductions, capital gains, etc., let's talk about these things. If you want to promise more free stuff to folks, while saying folks like me are mean, let's not waste our time.
JER 1 year ago
The "lefties" saw the subject matter and the name of the letter writer and have moved on. Feel free to talk among yourselves.
Yukonjohn 1 year ago
Thatcher and JER, I am so sorry that we did not get together when l was just in the sandhills. We will be coming back a bit more often in the next couple of years, but l have ruled out living in NC in retirement. I sure wish people could see that we need to reign in spending in our govt. and AP has a good sounding plan!! Hope ya'll are alll doing well.
fugitiveguy 1 year ago
"The "lefties" saw the subject matter and the name of the letter writer and have moved on. Feel free to talk among yourselves."
In other words, we cannot spin it without coming off like complete fools so we will avoid the conversation. We will never admit that our king is full of crap because above all else we are faithful members of the Obamanation first and foremost. We like drivel like fair share, millionaires and billionaires, hope and change, let me be clear, yada, yada, yada.
GJohn 1 year ago
I don't know if I'm a "leftie", but I just don't want to waste time on this drivel...again. President Obama has done pretty well dealing with the eight-year-long train wreck he inherited. Of course, he's been spending time on issues that Republicans abhor, like healthcare for all, but I guess that's the price you pay.
Thatcher 1 year ago
Yukonjohn-- Sorry we missed you when you were here in town. I may take my son on a hunting/fishing trip in Alaska in a few months. What town do you live in? Any advice on fishing guides? Be well!!
dogboy 1 year ago
...when I first saw the Buffet Rule in print I thought "Oh no! Golden Corral is limiting us to only one dessert!!!!
Yukonjohn 1 year ago
Thatcher, I do not know of any guides that l would recommend, but l do know of a river that receives NO fishing pressure, and there are huge pike there, and on the last week of July, there are fish we call sheefish that are in there thick!! Let me know when you are coming up and l will look around and see what it would run to go there, but l assure you it would be hundreds and hundreds cheaper to do that. My buddy that used to fish with me up there said it ruined him from ever fishing anywhere else in the world!!
JRowerdink 1 year ago
Easygoing: You’ve missed the whole point of my letter. Nowhere did I say that Warren Buffet is not following the tax regulations or doing anything improper. However, as you yourself say in your response, he takes a minimal amount of his compensation as salary and CHOOSES to take the huge majority as capital gains. Do you think he accumulated a $50 billion fortune on a $100,000 annual salary? My point is that if he chose to take more of his compensation as salary, he would pay a higher tax rate than his secretary. The fact that he doesn’t is hypocritical. You need to drink a little less of the Kool-Aid.
Thatcher 1 year ago
Mr. Rowerdink is 100% correct.
Thatcher 1 year ago
Thanks Yukonjohn! I'll message you when we're headed your way. And that river is EXACTLY what I was looking for. My son has been fishing with me since he was 4, and he long ago surpassed me in skills. Give him a river full of fish, and we'll fish all day long. This is gonna be great! By the way, what rifles/ammo do you guys use up there in case of bears?
JER 1 year ago
Yukonjohn: Sorry I missed getting together during your visit. I got back in the area the week before the race in Rockingham and was pretty busy getting the house and property back up and running. Hope you made the race. If you saw a guy in Kasey's pit waving at the grandstands during pit stops, that would have been me.
Thatcher 1 year ago
JER-- Since Yukonjohn came here and we were both gone, that means you and I must travel to Alaska! I'm working on a fishing trip with my son. Come with us. My boy can teach you everything you need to know in 10 minutes (smart ass kids). We'd love the company!
AFCHIEF 1 year ago
HEY OBAMA,
How much did the taxpayers have to pay for your 13yr olds spring break trip to Mexico
http://www.edmontonjournal.com/travel/Obama+daughter+spends+spring+break+Mexico/6323773/story.html
Yukonjohn 1 year ago
JER and Thatcher, I did make the race, and l would love to see both of you up here!! This river l was mentioning is the Porcupine River that is a huge tributary of the Yukon. I have seen Pike come out of it that were 5 ft long!! It is a crazy place to fish, and no one goes there. Got to go striper fishing with my brother and go to the whole race weekend, it was a blast. The weather has turned nice here too....sunny and in the 50s to low 60s. Take care and will talk to you soon.
JimHeim 1 year ago
afchief, who cares?
madstork 1 year ago
The Obama’s can spend as much of their own money on vacations as they care to. I care when we have to pay for secret service. I care when Michelle Obama feels she needs to get to the family vacation 4 hours before her husband and gets a separate 747 to do so...complete with additional support. Her vacation schedule is envious. It takes a few airplanes and Secret Service to make it special.
geoffcutler 1 year ago
You would, Jim... if it was a Republican in the White House. That's who!
AFCHIEF 1 year ago
Heim, expected response from the leader of the Moore county liberals. Taxpayer money is free to waste on 13 year old, free to waste secret service manpower.
JER 1 year ago
Yukonjohn and Thatcher: Thank you for the invitation. As you may have been able to determine, I'm one of those pacifist animal lovers and tree hugger so not into the hunting and fishing lifestyle. Even worse, and I know you'll really give me a lot of crap on this, I made a pledge to myself that I would never set foot in the state that elected Sara Palin as governor. This has got me in a lot of trouble with my wife, who desperately wants to take an Alaskan cruise. She and her sister are trying to work out their schedules so they can go together. Thatcher, hope you and your son can go and all three of you have a great time.