The bloggers at Common Sense Thinkers are a group of mature, fiscally conservative and socially compassionate Americans who believe in America, the capitalist system, and are generally folks who “cling to our guns and religion.” Our opinions and comments on the events of the world we live in are the simple application of common sense.
Friday, January 27, 2012
The Buffet Rule! What a joke?
The Socialist in Chief, (Obama)has developed the "Buffet Rule," named after billionaire investor Warren Buffet, which says rich people shouldn't pay taxes at a lower rate than their secretaries. To impose this rule, Obama said at his State of The Union address Tuesday that people making more than $1 million should pay at least 30 percent of their income in taxes.
Surprisingly I find myself in total agreement with Obama and the Occupy crowd, secretaries should not pay a higher tax rate than high income earners. But that is where the agreement ends! The Communist/Socialist economic model loved by Obama and the Democrats is to raise taxes on the high income earners. My view, and that of most common sense thinking individuals, is that we should fix this inequity by lowering the tax rate on all income earners.
The following article in of all places the Huffington Post does a great job of explaining why Mr. Buffet and Mr. Romney and folks who make most of their income from investments pay a lower tax rate than their Executive Assistants, perhaps Socialist-in-Chief Obama will actually read it since it comes from a liberal rag, however do not expect him to get it!
Investment Income Historically Treated More Favorably Than Labor By Tax Code
WASHINGTON -- Why do Mitt Romney and other wealthy investors pay lower taxes on the income they make from investments than they would if they earned their millions from wages? Because Congress, through the tax code, has long treated investment more favorably than labor, seeing it as an engine for economic growth that benefits everyone.
President Barack Obama and the Occupy Wall Street movement are challenging that value system, raising volatile election-year issues of equity, fairness – and Romney's tax returns. . . . .
"There are two ways to look at this: There is a moral argument and an economic growth argument, and they both point to lower taxes on capital gains," said William McBride, an economist at the conservative Tax Foundation.
McBride says it is unfair to tax income more than once, and capital gains are taxed multiple times. If you got the original investment from wages, that money was taxed. If the stock you own gains value because the company you invested in makes a profit, those profits are taxed through the corporate tax. And if that company issues dividends, those are taxed as well.
The fact is that Congress, not business owners and high income individuals, write and pass the laws and they don't go into effect until the President signs them. The fact is that income tax rates paid are based on where an individuals income comes from. By law wages and salaries are taxed at one rate, gains and income from qualified investments is taxed at another level, set by Congress. The fact is that everyone whose income comes from salary and wages, and those whose income from salary and wages exceeds $1 million dollars a year, regardless of their title (CEO, Scientist, Doctor, secretary, athlete, actor, union thug) already pays 35% (currently the highest rate for individuals earning over $358,000) of that income to the Federal Government. So could someone please tell me what more the Socialist in Chief and the Occupy Crowd want them to pay?
The little fact that never gets stated is that the Capital Gains tax (currently 15%) is an additional tax on income from money that has already been taxed once before. Making the real tax rate on capital gains income around 50%.
Every American who pays income tax (and nearly 47% of Americans DO NOT PAY one dime in taxes) is getting fleeced by the confiscatory policies of the Federal Government.
Don't believe the lies put out by the Democrats and repeated by the Integrity Free Media, Americans are Taxed Enough Already. We need less spending, not more taxes.