Mark Steyn writes about Obama’s budget fairytale and the “Buffet Rule”:
If the alleged Sage of Omaha is as exercised about this as his public effusions would suggest, I’d be in favor of repealing the prohibition on Bills of Attainder, and the old boy could sleep easy at night. But instead every other American “millionaire” will be subject to the new rule — because, as President Obama said this week, it “will help us close our deficit.”
Wow! Who knew it was that easy?
A-hem. According to the Congressional Budget Office (the same nonpartisan bean-counters who project that on Obama’s current spending proposals the entire U.S. economy will cease to exist in 2027) Obama’s Buffett Rule will raise — stand well back — $3.2 billion per year. Or what the United States government currently borrows every 17 hours. So in 514 years it will have raised enough additional revenue to pay off the 2011 federal budget deficit. If you want to mark it on your calendar, 514 years is the year 2526. There’s a sporting chance Joe Biden will have retired from public life by then, but other than that I’m not making any bets.
Let’s go back to that presidential sound bite:
“It will help us close our deficit.”
I’m beginning to suspect that the Oval Office teleprompter may be malfunctioning, or that perhaps that NBC News producer who “accidentally” edited George Zimmerman into sounding like a racist has now edited the smartest president of all time into sounding like an idiot. Either way, it appears the last seven words fell off the end of the sentence. What the president meant to say was:
“It will help us close our deficit . . . for 2011 . . . within a mere half millennium!”
It’s those fancy budget tricks again. It’s forecasting savings on things not spent and on income that won’t materialize when businesses move elsewhere.
Well, who cares about corporations? Only out of touch dilettante playboys like Mitt Romney who — hmm, let’s see what I can produce from the bottom of the top hat — put his dog on the roof of his car as recently as 1984! That’s where your gran’ma will be under the Republicans’ plan, while your contraceptiveless teenage daughter is giving birth on the hood. “Corporations are people, my friend,” said Mitt, in what’s generally regarded as a damaging sound bite by all the smart people who think Obama’s plan to use the Buffett Rule to “close the deficit” this side of the fourth millennium is a stroke of genius.
But Mitt’s not wrong. In the end, a corporation doesn’t pay tax. The marble atrium of Global MegaCorp’s corporate HQ is indifferent to the tax rate; the Articles of Incorporation in the bottom drawer of the chairman’s desk couldn’t care less. Every dollar of “corporate” tax has to be fished out the pocket of a real flesh-and-blood human being, whether shareholder, employee, or customer.
That’s a “tax on the manufacture” of the vehicle. It’s a business tax.
But you see that? That’s the window sticker. That tax is passed onto the consumer.
Taxing individuals who make $250,000 as robber baron slaveowner millionaires is just going to mean those small business owners and businessmen will simply increase the costs of their goods and services. If the Fantasy Maid Service of Lubbock ends up having to pay a millionaire bill of attainder tax, then they’ll simply pass it on to their customers. Ultimately, the increased prices hurt the business and crush them because they can’t expand if they can’t sell their goods and services to more people.
It’s a cheap cry for votes. It’s pushing class warfare, with useful (though incredibly wealthy) idiots like Buffet supporting it. While he may be wise in the ways of businesses he understands – note that he doesn’t invest in things he doesn’t understand – he’s unwise in government. Or else he’s chosen to create barriers to entry for his competition, making sure that no one little can make it – it’s the “pulling up the ladder” phenomenon.
If you’re an employee making $30,000/year, you’re working along, and you need your job. If you’re a business that grosses $500,000 and has ten employees to pay, you’re now a “millionaire” and the people who are going to hurt are going to be your $30K employees as well as the business as a whole. If you’re a $44,000,000,000 investor that owns a hedge fund that is 88,000 times larger than that small business, you won’t feel that tax at all. You buy and sell those ants for breakfast. Your personal wealth is larger than the GDP of most African nations, and your life will never be changed by another tax. You’ve got your money and it’s time to make sure no one else does. You can regulate and tax everyone out of existence because you have an army of litigators and lawyers to protect you.
But the small business owner will be destroyed.
Either Buffet is insulated, short-sighted, and foolishly believes, as have the tyrannical dictators of socialist hellholes around the world and throughout history, that he is smart enough to run everyone’s life and knows what’s best for you – or – he’s intentionally creating further barriers to entry, ensuring that the world he has created will be maintained, calcified in a web of regulations and taxes that enshrines the old businesses that can never be harmed as government will protect and save them for pull. He’s part of the Ruling Class, and has decided that he’ll run things from now on with his rich and powerful cronies… and the less rich and powerful will be demonized as “the real enemy”. There will be the masters and the serfs, and the citizen burghers and kulaks will have to be destroyed as we are driven down this Road To Serfdom.