The Warren Buffet Tax

This article originally appeared on the Daily Capitalist.

It really irks me when rich and famous guys are treated as gods and gurus because they made a lot of money. Money gives them the imprimatur to bloviate on how things should be. Warren Buffet is at the top of my bloviator list since he and Bill Gates (Sr. and Jr.) have talked about how they are under-taxed, how estate taxes are too low, and how rich people should give all their money away for charitable purposes. And, if you are Warren Buffet, how the government should bail out his investments.

Forget the fact that Warren Buffet is a great businessman, or, rather, was a great businessman. The man is a phony. He is a cheerleader for Obama's failed policies. Yet he has relied on bailouts to make his investments good, i.e., Goldman Sachs and Bank of America. I can guarantee to you that Mr. Buffet will never lose a dime in BAC because he knows that the government will never let it fail.

Now Mr. Buffet is prattling about how unfair his low taxes are and he has a big fan: President Obama.

Here is Mr. Buffet's argument for higher taxes: rich people should be taxed more because they make more. This is called a progressive tax (not to be confused with Progressivism, although it fits in) because the more you make, the more they take. In our history, the highest tax rate was 94% in 1944 during WWII. As recent as 1980 the highest rate was 70%. In other words because people are successful and have more of something, it should be taken away. "Fair" would mean everyone pays the same percentage no matter what they make, but that is not Mr. Buffet's idea of fairness.

Mr. Buffet favors taking away assets of rich people because they have them. That is, because he feels rich people should pay more, he wishes to force rich people to pay more.

Here is the phony part: why doesn't he voluntarily pay 90% of his income to the federal government right now? Why does he need a law to tell him to do this? If he truly believed it was the right thing to do, why doesn't he go ahead and set an example for other rich people and fork over 90% of what he earns to the government. Mr. Buffet, tell us why you don't do this.

Ditto with the estate tax. He and Gates Sr. and Jr. believe that they know what's best for you and your children and they wish to employ the power of the state to force you to part with your money because they think your kids will become wastrels. So effing what! They are your kids, not his. This is just social engineering by a bunch of rich guys who think they know what's best for everyone. Again, instead of giving their money to charity, why don't they just give it all to the government when they die since they believe that government knows better what to do with the money than their heirs. Mr. Buffet could actually pay for a couple of weeks of the wars in Afghanistan. That would be a big help. Mr. Buffet tell us why you don't do this.

So now the President comes up with an idiotic jobs program that is doomed to failure like the previous ones and he blithely claims it will be revenue neutral! Except that he is going to raise taxes to pay for it, which includes his tax-the-rich scheme which he calls the "Buffet Rule." Some neutrality.

President Obama looks desperate, dazed, and confused. He knows his America Jobs Act will go nowhere in Congress. He's trying to shift the blame on the Republicans. It is quite sad.

Mr. Buffet and others like him really don't have a clue as to how the economy runs. If he did he would understand that lower taxes and substantially reduced federal spending are the way to jobs and recovery, not more spending and debt, not more bailouts of his investments, and not more taxation on those who create jobs for the rest of us.

Mr. Buffet prove you aren't phony and do yourself what you would force other people to do.