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To: juno67
I think many conservatives believe in the fairness of a flat tax, by which the rich would pay the same rate as someone making $100,000 a year at his job.

Even with a "flat" tax income rate, there most likely will be an exemption on first $30K-$40-$50K (or whatever median income, or close to it, will be at the time) so the bottom 50% of income earners will not have to pay income tax on "earned income" thus still maintaining the highly "progressive structure" of "effective" income tax, though supposedly at a smaller rate and with much smaller number of deductions, if any. Whether any of it is "fair" is left to be decided by the individuals, depending on who is going to be subjected it, but it will be significantly simpler and, hopefully less bureaucratic.

First of all Buffett is a liberal Democrat, which means he is a first-class hypocrite, though he is (like many other very rich Democrats) a first-class investor and is well-spoken advocate for investing and other "causes" in his "folksy" manner.

But exposing this kind of hypocrisy is pretty easy. For instance, he is all for the "estate tax / death tax" yet the government will get almost nothing from his own estate, since it will be transferred to the family foundation, managed by slightly less liberal but about as rich Bill and Melinda Gates.

Same on taxes on the "rich". First, his secretary's taxes include paying disproportionate (relative to the salary) in payroll/Social Security taxes, which is capped and therefore is a miniscule percentage on $39M. Second, his "income" comes not from salary but from capital gains, which are tax-advantaged (as they should be, if not tax-free, because it involves capital risk, and is not a guaranteed "income") so here again he is deliberately omitting the difference in the tax rate structure. In other words, raising a tax bracket for M&Bs would not affect Warren Buffett's capital gains rate in the least next year. But it does endear him (and those like him, e.g., rich Hollywood crowd who call for more taxes on the rich, while investing their own money with Madoff and other privileged and/or tax-advantaged hedge funds or off-shore) to the hoi polloi and the "great unwashed" who represent the mass of Democratic voters.

That said, it's also easy to point out that his "revenue" math doesn't work either, even under his "best case" scenario:

From Warren Buffett's Tax-Hike Proposal Is Mistaken - Buffett's Blunder on Taxes - B, by Gene Epstein, 2011 August 20

When the numbers are on your side, it's easy to call the hypocrites on their "vague" assumptions and conjectures, which have no basis in real life. Just need to have the facts and the right lexicon in your arsenal.

And Warren Buffet was called on it, by none other than Arthur Laffer:
Buffett a Hypocrite for Seeking Tax on Ultra-Rich: Laffer - CNBC, by Margo D. Beller, 2011 August 18

Just the facts, ma'am. That will expose them to the sunlight of reality.

8 posted on 08/22/2011 12:13:35 PM PDT by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy

“First, his secretary’s taxes include paying disproportionate (relative to the salary) in payroll/Social Security taxes, which is capped and therefore is a miniscule percentage on $39M.”

Aren’t payroll taxes in fact taxes on income and therefore “income taxes”? So make it fair and undo the cap. That would bring the tax rate that Warren Buffet pays into line with his employees.


9 posted on 08/22/2011 12:46:07 PM PDT by juno67 (a)
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