Recently in an interview with ABC’s Christiane Amanpour; Warren Buffet, CEO of Berkshire Hathaway, Inc. said that “rich people should pay more in taxes and that Bush-era tax cuts for top earners should be allowed to expire at the end of December.”
Warren Buffet explains to President Barack Hussein Obama that the only way to save his presidency and keep the U.S. economy from rocketing into the abyss is to raise taxes on the "evil rich."
His rationale, “ the rich are always going to say that, you know, just give us more money and we’ll go out and spend more then it will trickle down to the rest of you.”
When we have MSNBC’s Rachel Maddow espousing the long since repudiated economic theories of John Maynard Keynes and singing in the same choir with Mr. Buffet it’s time to begin looking for a new church.
Using as her talking points the 1980’s primary debate between George H.W. Bush and quoting “voodoo economics” this years probable Nobel Laurite in Economics M.S. Maddow does what most progressives do, she revises the facts.
So before you book your flight to Oslo, Ms. Rachel, you may need to consider a few things.
1. The $700 billion that the “rich” would get to keep is theirs, and it doesn’t belong to the government. You are grossly mistaken that this $700 billion must be made up or there will be larger deficits.
2. Lost upon you during your Econ 101 class is that spending cuts on useless programs and departments within the federal and state governments must be made. Taxes do not need to be increased. That will begin to happen as the new Republican majority begins reshaping the current bloated federal you adore, starting in January.
3. In the case of the red ink you show for President Ronald Reagan’s two terms in office; apparently you missed the fact that spending didn’t go down it went up as congress built up the military and the U.S. defeated the Soviet Union in the Cold War.
4. Subsequently, a budget deal was cut in Congress with Democrats. The compromise contained provisions to increase funding for many social programs that had been assaulted during the Reagan presidency.
Despite the best efforts of the social progressives to spin these gains into a success story, the compromise required to ensure these budget increases came at the price of effectively undermining completely the very structure of program funding. Thus, the reason for President Reagan's deficits.
5. It’s a great talking point Ms. Maddow, yes let’s be divisive and tax the rich everyone will like that, the rich are “evil and they don’t pay their fair share.”
6. But wait a minute, the top ten percent of income earners paid 71% of all federal income taxes. It seems factually, they are paying more than their "fair share."
Had you considered that billionaires like Warren Buffett may not go out and purchase goods and services?
Mr. Buffets actions speak louder that his words. You see, CEO Buffett seems to take money that is already his, which the government so graciously allowed him to keep under the Bush-era tax cuts and invests it in new companies that would ordinarily provide capitol for growth, investment in research and development and create new jobs, wealth, and a larger tax base.
Ah, but you come back with if that were true where are the new jobs? You see Ms. Rachel; you have another thing in common with most in the current administration. You have never owned a business or made a payroll.
The current inept economic plans of the Obama administration will put many small business owners into the $250,000 bracket. Because of the inaction of President Obama, the Pelosi led Congress and the economic advisory team, businessmen and women, large and small are sitting on their money and not hiring. Why should they?
They have no clue what the tax structure will be; they already know that ObamaCare is destroying their bottom line. Many of them have dropped their health care plans.
Do you recall President Obama’s pledge that his health care plan would not increase the deficit? Well that wasn’t true now was it?
Do you remember that the health care bill was said to create 4 million new jobs, 400,000 almost immediately?
Since the health care takeover was signed into law, no such boom in jobs has occurred. Let’s not forget that President Obama's crack economic advisors seem to believe they can monetize the debt. You know, keep printing money that will insure the eventual return of inflation, few if any economists agree with this approach.
In fact, yesterday Russia and China have just announced to the world that they are abandoning the U.S. dollar.
Would it be a safe bet to say Mr. Buffet doesn’t have the help wanted sign out at the present time?
Ironically Warren Buffett has been named the "Wizard of Omaha." Now Omaha, happens to be the home of the College Baseball World Series.
Warren Buffett has created wealth unimaginable to most taxpayers. He’s repeatedly demonstrated great acumen when taking positions in the companies Berkshire Hathaway owns.
One thing is certain he would do well to stay away from Rosenblatt Stadium the last week in June as those college kids will hit him all over the park. Yes, when it comes to his reasoning on taxation "the Wizard" has clearly lost his fastball.
That's my story and I'm sticking to it, I'm J.C.
Jim Campbell runs Charging Elephants.
