Posts Tagged ‘Buffet’

24th January
written by Sean Noble








Obama told some real whoppers in is State of the Union address. Here are just a few:

This country needs an all-out, all-of-the-above strategy that develops every available source of American energy – a strategy that’s cleaner, cheaper, and full of new jobs.

C’mon, do you really expect us to believe that you support an “all of the above” strategy less than a week after you strike down the Keystone pipeline?  Get serious.

On clean energy – in particular, Solyndra, he said this:

Some technologies don’t pan out; some companies fail. But I will not walk away from the promise of clean energy. I will not walk away from workers like Bryan. I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here. We have subsidized oil companies for a century. That’s long enough. It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising. Pass clean energy tax credits and create these jobs.

Really?  There are already more tax credits for “clean” energy than any other form of energy.  To ask Congress to pass MORE tax credits and incentives – while billions of tax-payer dollars have been wasted, is irresponsible.

Speaking of taxes:

Right now, we’re poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2 percent of Americans. Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. Right now, Warren Buffett pays a lower tax rate than his secretary.

First off, does he really argue that the government SPENDS money on tax breaks? That is a typical Democrat talking point, as if it’s THEIR money to begin with. Secondly, Obama is purposely trying to confuse the American people by not acknowledging the difference between “earned” income and “unearned” income.  Warren Buffet doesn’t take a salary – so he doesn’t have “earned” income.  He has enough wealth that he can live on his investments and interest.  Those are called capital gains.  The capital gains tax rate is 15%, for good reason – because it is capital gains that fund new businesses, which in turn grow the economy.  If Obama actually doubles the tax rate on capital gains, economic growth will grind to a halt.  This is a cynical attempt to engage in class warfare, while trying to claim that it isn’t class warfare.

Obama continues:

But in return, we need to change our tax code so that people like me, and an awful lot of Members of Congress, pay our fair share of taxes. Tax reform should follow the Buffett rule: If you make more than $1 million a year, you should not pay less than 30 percent in taxes. And my Republican friend Tom Coburn is right: Washington should stop subsidizing millionaires. In fact, if you’re earning a million dollars a year, you shouldn’t get special tax subsidies or deductions. On the other hand, if you make under $250,000 a year, like 98 percent of American families, your taxes shouldn’t go up. You’re the ones struggling with rising costs and stagnant wages. You’re the ones who need relief.

Notice his crafty addition of the word “earning” when he is talking about people who are millionaires?  He knows, as well as anyone, that people who are “earning” millions are paying a much higher rate than the 15% of unearned income. They don’t get special subsidies or deductions – it just may be that their deductions are higher because they give more to charity, etc.

Obama continues again:

Now, you can call this class warfare all you want. But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense.

They only call that common sense when you confuse earned income with unearned income.

And here is the biggest whopper of the night:

We don’t begrudge financial success in this country. We admire it. When Americans talk about folks like me paying my fair share of taxes, it’s not because they envy the rich. It’s because they understand that when I get tax breaks I don’t need and the country can’t afford, it either adds to the deficit, or somebody else has to make up the difference – like a senior on a fixed income; or a student trying to get through school; or a family trying to make ends meet. That’s not right.

What’s not right, Mr. President, is for you to demagogue taxes in a way that is cynical and anti-productivity.

It’s sad that the President of the United States cannot be honest with the American people.