President Obama has proposed the imposition of a higher tax on the wealthy as a means of paying for the expenditures that he wants to make. This new tax would supposedly be imposed only on those making more than $1 million a year and is being called the "Buffett Tax."
This nickname is from billionaire Warren Buffett's recent complaint that he paid too little in taxes and that taxes therefore should be increased. Of course, Buffett ignores the tax accounting tricks that he plays in order to ensure that he pays less in taxes. For example, he takes from his company very little in salary which is taxed at a higher rate and takes most of his income in dividends or other income tricks which are taxed at a lower rate. Additionally, it is likely that he is able to take many deductions that most people are unable to take, thus lowering his taxable income.
Nevertheless, Buffett believes that the wealthy should pay more taxes. And Obama believes that everyone should pay more taxes. So, it is not surprising that they would find some common ground regarding tax increases.
What is surprising is that Obama's tax increase proposal relates to those making more than $1 million a year. Previously, the president has insisted that tax increases should be imposed on anyone making $200,000 or more or on families making $250,000 or more. He has justified these repetitive calls for higher taxes by speaking of the corporate jets and other perks held by such rich people.
Of course, if anyone knows how much a corporate jet costs or even a prop plane, let alone the maintenance costs, they would realize that families in the $250,000 income bracket or even a $500,000 income bracket are unlikely to have jets or yachts or other high-priced toys. Certainly they will have higher priced toys than the average American worker who makes significantly less. But these toys are likely to be more along the lines of larger and more expensive televisions, greater costing clothes, more expensive restaurants, larger homes, etc. than jets, yachts, or whatever toys the super-wealthy such as Mr. Buffett choose to have.
It is the president's and Democrats in general who love to play the class game. Previously, the division of classes has been at the $200,000 income level. At least now it is at a more understandable $1 million level.
Who knows, at a $1 million level, the president's plan for higher taxes might even gain some traction. If you are going to wage class warfare, you need as many people on your side as possible. And given the nature of things (in other words, tax the other guy and not me), the tax increase might gain favor among those in the $200,000 to $1 million income range. At least those who have no aspirations or anticipation of reaching a $1 million income.
So, at first glance, this appears to be a good thing. Not the tax necessarily, as that is for the economists and politicians to decide. Previous tax increase proposals have seemed to indicate relatively little in increased revenues for the government so they seemed primarily purposed to create class division or to punish the successful. Additionally, if increased tax revenue is just flushed down the toilet of unsustainable industries like the recent half billion loan to a green energy company or if increased tax revenue merely serves as an excuse for more government spending, then is there really any purpose at all?
No, what is a good thing is that it appears that the president is finally gaining some sense that the middle class, even if it is the upper middle class, is not the super-wealthy.
However, this remains to be seen. President Obama is also going to be proposing additional tax revenue measures. It will be interesting to see if those measures are also drawn at the $1 million income line or if he will revert back to his $200,000 line.
There appears some hope that he is getting it, but the proof will be in the pudding as they say.
Regards to President Dunsell.
This nickname is from billionaire Warren Buffett's recent complaint that he paid too little in taxes and that taxes therefore should be increased. Of course, Buffett ignores the tax accounting tricks that he plays in order to ensure that he pays less in taxes. For example, he takes from his company very little in salary which is taxed at a higher rate and takes most of his income in dividends or other income tricks which are taxed at a lower rate. Additionally, it is likely that he is able to take many deductions that most people are unable to take, thus lowering his taxable income.
Nevertheless, Buffett believes that the wealthy should pay more taxes. And Obama believes that everyone should pay more taxes. So, it is not surprising that they would find some common ground regarding tax increases.
What is surprising is that Obama's tax increase proposal relates to those making more than $1 million a year. Previously, the president has insisted that tax increases should be imposed on anyone making $200,000 or more or on families making $250,000 or more. He has justified these repetitive calls for higher taxes by speaking of the corporate jets and other perks held by such rich people.
Of course, if anyone knows how much a corporate jet costs or even a prop plane, let alone the maintenance costs, they would realize that families in the $250,000 income bracket or even a $500,000 income bracket are unlikely to have jets or yachts or other high-priced toys. Certainly they will have higher priced toys than the average American worker who makes significantly less. But these toys are likely to be more along the lines of larger and more expensive televisions, greater costing clothes, more expensive restaurants, larger homes, etc. than jets, yachts, or whatever toys the super-wealthy such as Mr. Buffett choose to have.
It is the president's and Democrats in general who love to play the class game. Previously, the division of classes has been at the $200,000 income level. At least now it is at a more understandable $1 million level.
Who knows, at a $1 million level, the president's plan for higher taxes might even gain some traction. If you are going to wage class warfare, you need as many people on your side as possible. And given the nature of things (in other words, tax the other guy and not me), the tax increase might gain favor among those in the $200,000 to $1 million income range. At least those who have no aspirations or anticipation of reaching a $1 million income.
So, at first glance, this appears to be a good thing. Not the tax necessarily, as that is for the economists and politicians to decide. Previous tax increase proposals have seemed to indicate relatively little in increased revenues for the government so they seemed primarily purposed to create class division or to punish the successful. Additionally, if increased tax revenue is just flushed down the toilet of unsustainable industries like the recent half billion loan to a green energy company or if increased tax revenue merely serves as an excuse for more government spending, then is there really any purpose at all?
No, what is a good thing is that it appears that the president is finally gaining some sense that the middle class, even if it is the upper middle class, is not the super-wealthy.
However, this remains to be seen. President Obama is also going to be proposing additional tax revenue measures. It will be interesting to see if those measures are also drawn at the $1 million income line or if he will revert back to his $200,000 line.
There appears some hope that he is getting it, but the proof will be in the pudding as they say.
Regards to President Dunsell.
AH
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