Famed billionaire Warren Buffet, who a couple of years ago made a splash by informing that his secretary paid a higher tax rate than he, is shown here receiving the United States Medal of Freedom this past February at the White House from President Barack Obama. Thus, the picture is of two dummies and a medal.
Buffet’s secretary’s rate was on her salary, thus, “earned income”. Buffet’s was on capital gains on invested capital, thus “unearned income”. “[U]nearned” is a misnomer, but legally-correct nonetheless. When Buffet earned the money in the first place in order to later invest it, he paid a higher rate on it than his secretary, all that before being double-taxed.
The medaler and the medalee agree that the government’s debt should be reduced by stopping “coddling” the wealthy and called on Congress to raise taxes on those making $1 million or more. In a New York Times op-ed August 15, Buffet said, ““My friends and I have been coddled long enough by a billionaire-friendly Congress,” wrote Buffett. Then, along came the Tax Foundation.
The Tax Foundation asserted that there were 236,833 such households. Buffet also said that an ever-higher rate should be assessed thos earning more than $10 million per annum. The Tax Foundation then asserted that there are but 8,274 of those. Taxing these folks at, say, 50% on all income, including capital gains and eliminating all deductions would only
reduce the nation’s debt by about 1%.
Now the Tax Foundation’s researcher and author, David Logan, proved why he should have been at the ceremony back in February, that so we could have had a trio of dummies and a medal in the room. Logan said — I couldn’t make this up — that if we taxed all of the millionaires and billionaires annually at a 100% tax rate, that would only raise $186 billion for the Treasury and reduce the deficit by 12% and the debt by 2%.
Then Logan — no he wasn’t finished making a fool of himself — provided the solution. After every American earning more than $200,000 had paid his federal income taxes, if the federal government took away every penny they had left, that would net the government $1.53 trillion, virtually eliminating the deficit.
Folks, these guys just know that they are the best-and-brightest-ivy-educated intelligentsia destined to lead as the “ruling class” the RAMs (ragged dyassed masses) to utopia here and now. And what’s really really scary is that tens of millions of “country class” RAMs are nodding (vertically) in agreement.