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Oops, here comes gravity …

The fine folks over at the Center for Individual Freedom compiled a list of their Top 5 Most Laughable Moments from this past week’s State of the Union. Teaser below and be sure to check out the remaining four, even if you’re BarryO. Actually, especially if you’re BarryO.

“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.”

We’re only spending $1 trillion in this instance if you define “spending” as “failing to take from someone the money they’ve earned.” To understand how ludicrous this rationale is, consider the following: The same logic would lead you to conclude that we’re “spending” nearly $1 billion a year by failing to tax the American Cancer Society at a 100 percent rate.

Also, this Warren Buffett nonsense has to stop. Buffett’s tax rates are lower than his secretary’s because he’s being taxed on capital gains: the profits he’s made from investments made with after-tax dollars. When Buffett originally made that money in the form of earned income, he paid a rate at least as high as his secretary (and probably higher, given the nature of the progressive income tax system). One simply cannot advocate for renewed economic growth in one breath and then decry the fact that there isn’t a higher tax on job-creating investment in the next. This shouldn’t be surprising coming from Obama, however. In a debate during the 2008 campaign, he said that he would favor raising the capital gains tax even if it resulted in a reduction in tax revenue – as a matter of “fairness.”

22 comments to Oops, here comes gravity …

  • Mighty Skip

    I especially like the last one, because he completely misquoted Lincoln. But I don’t think it was a mistake, I think he misquoted on purpose to obfuscate Lincoln’s true meaning.

    http://www.humanevents.com/article.php?id=49059

  • Nice picture of Chumley.

    “Let’s take a look at the 3D BB!”

  • JimmyC

    Okay, new drinking game for Obama’s speeches. Take a drink every time he mentions Warren Buffett’s secretary.

  • Stephanie

    Doesn’t the secretary make 500k a year? Cripes I want that job.

  • Stosh from da Sticks

    The worst thing about all this Warren Buffet/tax rate crap is that it takes the focus off the real problem – spending – by distracting the populace and the opposition from it to what is (by any realistic assessment) a side-issue – revenue. It’s like spending all your time worrying about treating your gout while ignoring your doctor’s diagnosis of a malignant tumor.

    I’ve point out the following fact before in a number of places, probably including this forum, but I’ll keep doing it until if finally sinks in with everybody: in every year of the Obama regime, we’ve run deficits of roughly $1.3 trillion, and we’ve brought in income tax revenues of roughly $1 trillion. DOUBLING EVERYBODY’s taxes would only bring in an additional $1 trillion, still leaving us several hundred billion short of balacning our books.

    It matters hardly a whit what Warren Buffet and his stinking secretary pay – if the current idiot at the helm doesn’t cut spending (fat chance) or doesn’t get sent packing, the hand-basket we’re all in will reach its designated destination damned soon, and we can meet up with Greeks in the same state of fiscal chaos.

    • Rufus

      You are absolutely correct, Stosh. Classic misdirection. Houdini would be proud.

      By far the biggest reason it’s a nuisance is the one you mention, it takes our attention off of the spending. However, there are two other bogus components:

      2) Yes, taxes on earnings at 15% are lower than the highest, marginal income tax rate, but every dollar someone invests and pays earnings on was already taxed at that higher, marginal rate. It’s double taxation but Warren and our President don’t ever mention those taxes Mitt paid on that same money in prior years. For example; Mitt Romney paid $6M in taxes this year. If it was all earnings, and based on 15% that means he earned $40M. Wow! That’s great! I bet you’d like to earn $40M! It’s scandalous that he only pays 15% on that when you earn far less and pay 28% or 33%, maybe even more! Well, if it is earnings on investments that means he already paid taxes on it at the highest marginal rate when he earned it. You can’t invest money you don’t earn. At some point in the past Mr. Romney earned that money, and he paid income taxes on it when that occured. Now he is investing it, and some of those invements paid off and he has to pay taxes again on any profits he makes on those investments. So he is actually paying at least 43% on that money. Warren Buffet’s secretary would vomit if she paid 43% in federal income taxes. And goodness knows what else Mitt pays in state taxes and property taxes and fuel taxes and, and…

      3) Warren Buffet’s “secretary” is very well paid. Almost 50% of Americans pay no federal income tax at all. Estimates of her annual income put her in the top 10% of average, household incomes. Calling her a secretary is like calling Prince Fielder a batboy.

  • Tink in Cali

    I thought the most preposterous one was this, 3. “Millions of Americans who work hard and play by the rules every day deserve a government and a financial system that do the same. It’s time to apply the same rules from top to bottom. No bailouts, no handouts, and no cop outs. An America built to last insists on responsibility from everybody.”

    Does he even read his speech or listen to himself? Everyone wants this, and no one’s administration has ever been more of the antithesis of it. And, um, when exactly do the bailouts, handouts and cop outs stop? Especially since he was touting their effectiveness when talking about the auto industry?

    Even more ridiculous than the environmentalists and “Whale Wars” (from Floyd’s earlier post), it is to laugh except that the ramifications are proving to be too dreadful for our country.

  • I have found my life to be much more enjoyable if I turn the station every time that SCFOAMF comes on my TV.

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