Why is it people who should know better say ridiculous stuff sometimes? Recently,
Warren Buffett came out in favor of Washington taxing the ultra-rich at much higher rates than the rest of the U.S. population. As an ultra-rich person himself, he should know a few things.
If the rich are taxed at increasingly higher rates, all they will do is find legal ways to hide their incomes in tax shelters, overseas funds and other places where it will do no one but them any good. Then, how will the government tax it? Who will they go after next, the already overburdened middle class??
Respectfully, Mr. Buffett, is your memory so short?? It’s all happened before, and not
all that distantly. Do you remember when President Carter tried it? He attempted to tax “luxuries” rich people buy, like yachts, cars, planes and the like. They responded by buying them used and/or presented to the IRS legitimately documented business reasons for owning and using them.
I have a wealthy friend, an entrepreneur, who did that with his yacht. He bought used during the Carter administration, then proved its usefulness to his business ventures to the IRS. He won his case with them, to the tune of 80% of his yearly depreciation and operating expenses. He also shared how he did it with fellow entrepreneurs, so they could get the same tax breaks on
their own “luxuries.” So, other than thousands of jobs lost and American companies bankrupt in yacht building and other “luxury” industries, who won that tax battle? My wealthy friend and his friends!!
President Reagan abolished many of the high taxes of his predecessors, and the U.S. economy was starting to rebound by the start of his second term. Why? Because the rich had the money that was no longer being taxed to invest, and invest they did. They created businesses, expanded businesses and created jobs over every sector of the American economy. The boom in the economy enjoyed by President Clinton was not of his making. An economy takes years to adjust, whether it be in recoiling from something foolish, or recovering because of the decisions such as
The government doesn’t create jobs, people do. More specifically and most often,
rich people do. Who owns corporations? Rich people. They are the people who can afford to invest huge sums of cash to do it. Rich people won’t invest their money to create jobs when they believe the income they earn for their investing and taking the risks to create said jobs will be taxed away.
Everyone, even the ultra-rich, operates on a WIIFM (What’s In It For Me?) basis. Of all people, Mr. Buffett, you should know this!
So, what do we do? Instead of trying to raise taxes, why don’t we look at the other end of the budget spectrum, and close the gap the way President Reagan did it, by lowering what the government spends?? Why don’t we abandon the “gimmie” mentality that so
pervades our culture??? Why don’t we take the budget to the chopping block and go at it until it balances??? Have we no people of courage in Washington and our state houses???
I am not saying there are not real people with real needs who need to be helped, and should be helped. But for every real person, with their real needs, there are at least 1 to 3 more who could work, and don’t chose to. I know some of them, too. Instead of looking for work, they make excuses and live off the government dole. It’s easier and more convenient to them. I also know others who could live off the government, and don’t chose to. They make their own way, depending on no one but their own efforts to make it in this world. Do they have it easy? No, and they tell me they have something of even greater value than ready government cash — their dignity and worth as contributing citizens, instead of feeling like human leeches on our society.
Cutting the wastefulness is something we could do. Why don’t we run our
governments, both at the state and national levels, the way Puerto Rico does? They do it as if they expect to have a surplus and turn a profit back to their taxpayers within the next 5 years. It looks from all the evidence that they are on track to do it! They did it by severely cutting back and eliminating waste. Was and is it popular? Heck, no!! Is it working?? Heck, YES!!!