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Discerning
Fact From Fiction In The
Tax Hike Debate
Austin Hill
October 3, 2011
Just
because you’ve excelled in your
chosen career field doesn’t mean that you have a clue about economics.
And
just because people claim that
they are being self-sacrificing, doesn’t necessarily make it so. As
President
Obama struggles seeks support for his tax-and-spend “jobs bill,” an
intriguing
chorus of supporters has emerged, intertwining fact and fiction. Start
with the
“objective journalists” at The New York Times who have lent their
support to
the tax-hiking agenda.
The
Times has twice characterized the
President’s push for higher taxes as “asking the rich to pay more.” But
here’s
a fact: the I.R.S. doesn’t ask anyone to pay taxes – it mandates that
taxes be
paid. It requires it. The Times might ask a small business owner about
this –
especially one facing an IRS audit – and see if our government is
requesting or
demanding that people hand-over their money.
Next
let’s look at Warren Buffett. The
“Oracle of Omaha” is in a category all his own, and deserves respect
for the
ways in which he has amassed his personal wealth. He has achieved this
by first
and foremost serving his clients remarkably well, and in so doing he
himself
has prospered. This is the way it’s supposed to work, and Buffett has
emulated
the virtues of capitalism and free enterprise throughout his career.
Why
Mr. Buffett has hitched himself to
the President’s never-ending quest for higher taxes is a mystery. Yet
despite
the fact that President Obama has nick-named his latest tax hike plan
the
“Buffett rule” (reports last Friday indicated that maybe Mr. Buffett
doesn’t
like his name being used in this way and that maybe he doesn’t support
the
tax-hike scheme after all), Mr. Buffett has still found it necessary to
respond
to the President at times with a few facts of his own.
In
August of 2009, Buffett began
sounding the alarm about how staggering levels of government debt could
hinder
private wealth creation. And earlier this year Mr. Buffett publicly
corrected
some of the fiction that President Obama was propagating about how
“millionaires and billionaires” duck out of their tax responsibilities
by
deducting the costs of their “corporate jets” from their tax bill.
The
story is a bit different with
former Google Executive Doug Edwards. Speaking at an Obama town hall
event in
the Silicon Valley recently, Mr. Edwards stepped up to the microphone
during
the “q and a” portion of the show and noted that “I am unemployed by
choice,”
and that he “worked for a small startup down the street here that did
quite
well (a reference to Google).” Then came Edwards’ question: “My
question is –
would you please raise my taxes?”
Mr.
Edwards’ remarks have been
characterized as a display of sacrifice and virtue. But here’s another
fact:
Mr. Edwards does not need his government to take more of his wealth
away. As an
American Edwards is quite free to do what he wishes with his money, and
he has
the power to part with more of his money all on his own.
“Please
raise my taxes” may sound
righteous, until you consider that the government doesn’t set tax rates
for
individuals, but rather, for groups. With a call for higher tax rates,
Mr.
Edwards is actually calling for the government to confiscate more money
from millions
of other people as well as himself. If he was serious about more of his
money,
alone, going to fund the government, he could simply make extra
“contributions”
to the IRS, and choose to not itemize his tax deductions...
Read
the rest of the column at
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