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Buffett Rule is not what it seems to be

 

When President Obama signed the bipartisan JOBS Act into law a couple weeks ago, he commended America’s business owners.

He recognized them because, “when their businesses take off, more people become employed,” and vowed to keep working together to move the economy forward.

A few days later, however, he’s calling for “fairness” in taxation, and pleading for the so-called Buffett tax.

What he does not tell the American people is that the Buffett Rule will not bring about deficit reductions. Still, the president continues to argue that it should be enacted as a matter of fairness.

The truth is that the proposed tax increases would hit small businesses and investors funding start-up companies -- the same businesses, as Sen. Kay Bailey Hutchison pointed out, that he praised when signing the JOBS Act.

Instead of inciting envy of the “1 percent” that Obama calls the millionaires and billionaires, why not make sure that the almost 50 percent of those households that paid no income tax would have to pay something?

That sounds fair to me, but that is not what Obama has proposed.

“President Obama has proposed the Buffett Rule to make sure that everyone does their fair share,” reads the White House website. He wants to make sure everyone “plays by the same rules, so that millionaires and billionaires pay at least the same share of their income in taxes as middle- class families pay....

“No household making more than $1 million each year should pay a smaller share of their income in taxes than a middle-class family pays. ...

“About 55,000 millionaires pay a lower effective tax rate than millions of middle-income Americans.”

This does make it seem totally unfair, and that’s just what it was intended to do. It is all part of the continuing class warfare being fomented by this administration, but it is totally disingenuous to be deceiving the public like this.

Actually, Buffett and every other investor pay income tax when money is earned. When they reinvest that money on which taxes have already been paid, they pay income taxes on any profits made from those investments. It is the rate of taxes on investment returns that Buffett refers to when he says he pays a lower rate.

The Democrats foist this Buffett Rule on the American public as “economic fairness,” while billionaire Warren Buffett continues his long court battle with the IRS over taxes which they claim he owes.

The Buffett Rule was defeated on a Senate vote last week, largely along party lines, but the fight continues.

Fairness, indeed. The “little” millionaires who own small businesses will not be able to hire teams of lawyers like Buffett does to fight for their rights.

Republican National Committee chair Reince Priebus issued a statement, which reads, in part, “At a time of record high unemployment, the Buffett Tax won’t create a single job. It doesn’t address our spending problem. And, it won’t help the nearly 13 million who are unemployed or middle class families who are suffering in the Obama economy.”

 
 
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