One of the many false talking points of the Obama administration is that a rich man like Warren Buffett should not be paying a lower tax rate than his secretary. But anyone whose earnings come from capital gains usually pays a lower tax rate.
The core of Barack Obama's campaign is built upon the fallacious idea that Mitt Romney's plan to get the economy growing again will take us back to the policies that caused the Great Recession in the first place.
Politicians conveniently forget that dividends and capital gains get hit by the corporate income tax. And since America now has the developed world’s highest corporate income tax rate, it’s adding insult to injury to tax the income again. Actually, it’s adding injury to injury!
Income tax time is an appropriate moment to go to the heart of President Obama’s complaint about the taxes Warren Buffett and other rich people pay, or don’t pay. What the president is really complaining about is that the tax rate on capital gains is too low.
While Romney is a millionaire, any American who buys a share of stock and sells it for a profit, or is paid dividends from that stock or other investment, or sells a home would would pay the same rate Romney does.
The reason we find that conclusion to be significant is because the Taxpayer Relief Act of 1997 left dividend tax rates unchanged - they continued to be taxed at the same rates as regular income in the United States, which provided a powerful incentive for investors to treat the two kinds of stocks very differently, favoring the low-to-no dividend paying stocks over those that paid out more significant dividends.
Especially in tough economic times, like these when people in general have less to give, charities and universities welcome any type of donation -- cash or stock.
If you work hard, play by the rules, save your money, create jobs, and make a success out of yourself, President Obama and the Democrat party will plunder everything you have worked so hard for, because in their view that is only fair.
What if Barack Obama had begun his presidency by enacting a permanent tax cut that further lowered income tax rates, cut the capital gains rate in half and reduced business taxes across the board?
President Obama and the Democrats are finally happy. Liberated from thoughts of compromise with Republicans, they can fully indulge their most lascivious pleasure -- trashing rich people.
The president, of course, isn't in either business specifically, but in a larger sense he's been investing our money, picking the businesses he thinks will fuel economic expansion, new jobs and the technology of the future, and rebuild the nation's fraying infrastructure.
It’s time to put America back to work! Chances are that President Obama will give his “New” plan after his vacation. Most likely, he’ll announce a new stimulus plan with “shovel-ready” infrastructure improvements, a call for more taxes on the “wealthy,” and a move to extend unemployment benefits forever!