When the news media pounce on the fact that Warren Buffet pays less taxes than his secretary, they create a complete distortion of the so-called “millionaires” in this country.
Millionaires as defined somehow have been morphed to include anyone making more than $250,000 per year, but that includes a whole bunch of us who are not really “wealthy” in the terms of Warren Buffet.
The so-called problem receiving the focus is the capital gains tax rate of 15 percent. But it is not the tax rate that is the problem.
Examples are being thrown around that show how the wealthy get to make money and pay only the lowest rate on their earnings.
So let’s take all the money managers and hedge fund managers and Warren Buffets of the country, who are being shown by example to not be paying their fair share of taxes, and put them in a room.
Then take all of the other people in the country who are not “wealthy,” but considered to be “millionaires” and who pay taxes, but depend upon capital gains investments to supply daily living needs, retirement and funds that support our businesses, which make this economy go, and put us into a room. No, actually, it will take several Superdomes, or maybe a Grand Canyon-size place.
Yes, there is an enormous population of people who are not really “wealthy,” who do not make millions and who also pay more in taxes than Warren Buffet’s secretary, who would be penalized with the type of changes proposed to the capital gains tax on investment income.
But going back to all those who are in the Warren Buffet room, figure out how to qualify them to pay their share. Don’t penalize those who have put their hard work into investment so that we do not have to rely on Social Security and Medicare to subsist.
The whole idea should be to encourage people to plan ahead and get off the government’s back for support. Don’t destroy that because of a room full of greedy, wealthy people who are not part of the group who are out here supporting the economic system with positive input and production.
Increasing taxes on the larger and more productive group only causes more of us $250,000 millionaires to get into a financial bind, which ends up making more opportunities for the Warren Buffets of the world to buy our good businesses and assets at a reduced price.
Z. David DeLoach