I get nauseated and disgusted when guilt-ridden wealthy people try to come across as friends of the common man by endorsing soak-the rich taxes. I’ve even debated a couple of self-loathing trust fund babies (see here and here) about class-warfare policy.
If neurotic rich people believe that the government should have more money, there’s nothing stopping them from writing big checks to Uncle Sam. This is a free country and they have the right to be stupid.
But they shouldn’t be allowed to lie, either intentionally or accidentally. And this is why I get so upset when Warren Buffett says that rich people have lower tax rates than their secretaries. I’ve already explained on the blog that this is completely inaccurate because it ignores double taxation, and I reiterated that argument in this CNBC interview.
I’m not surprised that my debate opponent disagreed (even though I assume he knows I’m right), but I am surprised that one of the CNBC hosts didn’t understand the concept.
[…] any event, Bill Gates isn’t the only rich person who feels guilty about their wealth (or strategically pretends to feel guilty in order to either […]
[…] Unfortunately, I doubt this idea will work. Rich statists with neurotic disorders tend to deal with their feelings of guilt by supporting higher taxes on other people. I’ve actually debated these crazies (see here, here, and here). […]
[…] Unfortunately, I doubt this idea will work. Rich statists with neurotic disorders tend to deal with their feelings of guilt by supporting higher taxes on other people. I’ve actually debated these crazies (see here, here, and here). […]
Yes, indeed, I’m 65 years old, thus have a life expectancy of 17 more years on this earth, but heck! I’m just dying to spend them working for my children so that I can pay a 45% marginal tax (Fed+State) on the extra income and then from what’s left my children can pay 55% in inheritance tax. Thank God that by not working I leave room for others to take my slice from the finite pie of innovation and entrepreneurship.
So what’s America’s long term trendline growth rate gonna be once HOPE and CHANGE take root?
Dave,
Assuming your percentages are correct re: Cheney and teachers, the disparity cries out for a low, flat tax on all income, or better yet, abolishing the income tax and substituting a reasonable consumption tax, such as the Fair Tax.
Inheritance tax is paid on money already taxed. Our after-tax income should be ours to do with as we desire – spend, save or gift.
Where do the “wealthy” “stash” their income? If there are reasonable tax rates, they “stash” it in investments that can then be used by businesses to expand or create their businesses, thus creating jobs and wealth. Giving government money via taxation does not grow the economy or create wealth, only the private sector does that.
Regards,
Steve
1. Dick cheney paid 8% of his $35,000,000 income while teachers paid about 22% NOT COUNTING PAYROLL TAXES which put the teachers with a huge tax burden.
2. if you are dead you cannot pay any taxes. only those who receive untold “gifts” during their lifetime expect $3,000,000 tax -free income. They obvious didn’t make it the American Way ( earned it)
but got it as a gift. Does a lottery winner get that break? oh but those special “productive job creator” offspring do?
3. As Henry Ford learned long ago, the consumer ceates the jobs and the proportionately higher spending worker is the real job creator who now can buy a car, a house, appliances, et.al.
Be economically wise and tax the wealthy before they stash it away somewhere. That will be the time when our economy grows
Superb! That was a very courageous stand!
The guy with a beard says at 3:54: “We cut taxes under president Bush and we got no jobs!”
Well, it seems that people quit their jobs to become entrepreneurs, because June 1st 2003, ONE WEEK AFTER THE TAX CUTS WERE SIGNED INTO LAW (May 23th 2003), is a MULTIYEAR HIGH on the number on unemployed, as soon as tax cuts were signed into law the number of unemployed started a multi year sharp decline!
On June 1st 2003 the unemployed were 9,266,000. That was a MULTIYEAR HIGH. Next mont, in july, they were down to 9,001,000 then down to 8,889,000 in august and the uneployed headed down until it reached 6,725,000 in march 2007, almost 4 years after. The tax cuts succes was simply spectacular. The data is from the Federal Reserve FRED database http://research.stlouisfed.org/fred2/graph/?chart_type=line&s%5B1%5D%5Bid%5D=UNEMPLOY&s%5B1%5D%5Brange%5D=10yrs
Employment must have not increased that much but, what happens if people decide to leave their employment and start a business? Does the owner of his own business counts as an employed person in the USA? I do not know how that works
It seems that the guy with a beard came up loaded with a misleading fact. Well, such is TV, you cannot check facts, that is the reason I prefer blogs
I keep waiting for your scathing review on the basic unconstitutionality of income taxes.
Let me know when you’re getting worked up for a proper tirade on the subject, I’ll send you a few beautiful Hermes ties and a handful of gorgeous card girls to hold your charts.
You, Dan Mitchell, are my hero. I never get tired of seeing you outdebate these clowns on tv. Keep up the great work.
“I am surprised that one of the CNBC hosts didn’t understand the concept.”
He is paid to read of a teleprompter. Not to do 5th grade math.
So when is he moving to France ?
While he may still be bothered that someone, somewhere pays lower tax rates, at least in France he’ll be surrounded by other happy, highly taxed people.
No one seems to understand who pays corporate taxes. Do people really believe that corporations actually pay taxes? All of their services and products are more expensive to cover these taxes, which means that consumers are paying corporate taxes, after they pay their own income taxes.
If anyone believes that corporations actually pay taxes, I have some canned unicorn meat just for them, it’s an excellent source of sparkles.
http://www.thinkgeek.com/caffeine/wacky-edibles/e5a7/?cpg=ogc1&source=google_caffeine&gclid=CLHEnvTPraUCFUS8KgoddS0sZQ
Even if Buffett was correct (which he is not), the obvious solution is not to raise his tax rate, but to reduce the tax rate of his assistant…