Me and My Nine Iron

September 12, 2011

Why Warren Buffet is right


For those that follow my blog, you know that I spew my personal beliefs, opinions and values freely. I love talking about religion, politics and those damn Yankees, and sadly, my friends don’t share in my love for discussing intellectual topics. Save for the midterm elections, the last current event that I had a stance on was the war. A year or two ago, I conceded that the war was a lost cause and that we should pull out immediately. But enough about old news.

A current hot topic is taxes and our country’s bizarre decision to adopt progressive tax rates with the most complex tax system in this planet. Even though I’m not rich, I hope I can be viewed as unbiased when I say I don’t see a problem with the rich being taxed at a higher rate. And if my not being rich makes me biased, Warren Buffett can back me on that because it really comes down to government revenues and how the government stiffs itself with all these tax breaks for the rich in their current fiscal straits. Oh yeah, and fairness to the lower and middle classes.

Either close the loopholes or adopt a flat tax rate across the board, but no way in hell should the rich be paying less in taxes than the lower classes. I’m not just talking about percentages either. I’m talking about what Buffett illustrated in his New York Times article last month, how millionaires can pay a lesser amount than a lower or middle class person based on technicalities.

More a Republican than a Democrat–if I were to be a registered voter–I defended President Bush through all the decisions that he made and all the mocking he received, except on one thing – when he gave tax breaks to the upper class. I don’t buy the theory that the money saved on taxes will be pumped back into the job market to create new jobs, and I couldn’t agree more with probably the most essential paragraph of Buffett’s article.

“I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.”

Two days later, Jeffrey Miron, wrote his opinion titled, “Why Warren Buffett is wrong.” Buffett’s a smart guy so as with any persuasive piece, he knew to address the weaknesses or arguable points. Miron’s musing is nothing Buffett didn’t already counter-argue, and it’s clear this Harvard director is what all the politicians opposing this tax change are – a rich asshole.

To all those who say President Obama is just like the rest of them or that he lied by failing to deliver what he promised, his head’s in the right place. He only realized after he took office that he can’t single-handedly change what is an unfixable and fucked bureaucracy. All he can do is what he did in this case – voice his stance in backing Buffett. Hopefully, people are smart enough to know that there are 100 other people who actually run the country, and that they’re determined not to agree on anything for the sake of fighting with the other side.

BJ

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4 Comments »

  1. Obama just proposed the Buffett Rule. Nice!

    Comment by Bryan Jeon — September 19, 2011 @ 11:02 pm | Reply

  2. By the way, I agree with everything you wrote in this post. Very well covered and I thought all bases were covered. It was a logical and sensible argument.

    See? Sometimes people do listen/pay attention to you.

    But you still are an asshole. But at least you’re my kind of asshole.

    Comment by Ja-Hon Suh — September 12, 2011 @ 12:41 am | Reply

  3. pretty good insights. I’ll be sure to stop by and read more from you. thanks.

    Comment by Jamie Holts — September 12, 2011 @ 12:40 am | Reply

  4. Really? I thought I discuss intellectual topics with you in earnest and with some semblance of intelligent rapport. Granted, knowing us (or perhaps just me in particular) I throw in some toilet humor and beyond-risque expository into the situation, but nevertheless I always thought it was invigorating mental exercise.

    Comment by Ja-Hon Suh — September 12, 2011 @ 12:39 am | Reply


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