Political Insight | Editorials from the Habledash Team

The Phony Buffett Rule

For starters, nobody should give a crap about what the schmuck Warren Buffett has to say.  Good for him, he's a billionaire.  But that doesn't let him dictate to the rest of the country what other successful individuals should pay in taxes.  Additionally, Buffett is a liberal ideologue and a complete moron when it comes to politics - and paying his own taxes.  So, we're left with the Buffett Rule, which liberals have positioned as a "fairness" tax.  It's another divide intentionally promoted by liberals to ensure the politics of envy and class warfare remain at the forefront of every disenfranchised moron in the country.  Each day that goes by, the Buffett Rule becomes less popular.  And it should because it accomplishes nothing.

The Buffett Rule is a new 30% tax on millionaires and billionaires, otherwise known as individuals that make over $250,000 per year, which includes hundreds of thousands small business owners that drive the American economy.  When the numbers are crunched, it's crystal clear that the Buffett Rule has nothing to do with reducing the deficit - it's an attack on successful Americans, which the Left salivates over.  It's nothing more than a redistribution of wealth.  Understanding these details paint the true picture of the Buffett Rule, which is class warfare disguised as fairness.

From the Wall Street Journal

The case for the Buffett tax keeps eroding. When President Obama announced the idea, he said it would help "stabilize our debt and deficits over the next decade." Then came the inconvenient revelation that the new 30% millionaire's tax would raise only $46.7 billion over 10 years, and would leave about 99.5% of the deficit intact in 2013. It was a far cry from "stabilizing the debt."

Now we learn that the Buffett tax the Senate is expected to vote on early next week will make the deficit worse. That's because both Mr. Obama and Senate Democrats have made it clear that their new "fairness" tax is to offset the revenue loss from another provision related to the Alternative Minimum Tax

That measure would exempt more than 20 million middle class Americans with incomes as low as $80,000 a year from getting nailed by the AMT. This year's Obama budget clearly describes their intent: "The Buffett Rule should replace the Alternative Minimum Tax, which now burdens middle-class Americans rather than stopping the richest Americans from paying too little as was originally intended."

The Joint Tax Committee—the official scoring referee on tax bills—calculates that the combination of AMT repeal for the middle class and the Buffett tax would add$793.3 billion to the debt over the next decade. As Mr. Obama has said, "This isn't politics, this is math."

The Buffett tax is losing any serious rationale by the day. Mr. Obama's position now is that we need a new fairness tax, because the old AMT fairness tax that was targeted at millionaires and billionaires isn't raising much money from the Warren Buffetts of the world. Instead it's siphoning income out of more and more nonmillionaires. So they argue it's time for a new Buffett rule, that is almost identical to the old Buffett rule, and no doubt in time will have the same unintended consequences.

The Buffett rule itself may die, but the name will live on as a metaphor for pointless public policy.

Lest we forget that even President Barack Obama himself called the Buffett Rule a "gimmick." 

The way this administration attacks millionaires and billionaires, you'd think they're all child pedophiles.  Nope.  They're just a group of successful Americans that Obama associates with dollar signs that he would like to take and redistribute to his entitlement society, who, in turn, will vote for him come election day.

The Buffett Rule is a gimmick and it's a sham.  But did you expect anything more from this empty suit of a president?

Cliff Levine is a contributing editor for Habledash.


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