Warren Buffett's secretary pays more* in taxes** than Warren Buffet does .
* The term "more" is used loosely and in this context actually means less, since the typical secretary earning $60,000 will pay approximately 10% of her income in federal taxes. This is less than the capital gains rate, regardless of which lie the President decides to trot out to "prove" his case.
** The term "taxes" is used loosely and in this context means "federal income tax" for Buffett's secretary and "capital gains tax" for Warren Buffett. The two are not the same, regardless of which lie the President decides to trot out to "prove" his case.
The President, not surprisingly, is once again lying his face off by claiming that a billionaire investor pays less in "taxes" than his secretary, since the taxes paid by the two parties are not the same tax since investors pay on capital gains and employees pay on income. Believe it or not, there is a reason for the disparity in tax structures - the capital gains rate is lower in order to encourage investment in capital within the United States. When capital is created, so are jobs.
In any case, the President appears hell bent on wielding the "Buffett Rule" as some sort of weapon against Romney, apparently thinking that nobody in the world possesses either 1) a calculator, or 2) a brain.
According to the Congressional Joint Commission on Taxation report released on March 20, 2012, the "Buffett Rule" would raise approximately $4.67 billion per year through 2022 . In other words, while the President is busy racking up deficits which recently have averaged $1.3 trillion per year, he is also beating us over the head with a "revenue enhancement" that will recoup 0.36% of that annual deficit.
The moral of the story is that we can soak the rich even more, further encouraging them to either 1) cease investment within the United States, 2) move their money offshore, or 3) retire completely and "go Galt , and yet still be left with 99.64% of the President's annual budget deficits.
Brilliant. (But then again, the only reason the President can routinely get away with this outrageous lie is that most of the people who will vote for him don't care.)
In love of liberty,
The Bulletproof Patriot
Note: We'd do far better by simply requiring Warren Buffett's Berkshire Hathaway to pay its back taxes, which amount to approximately $1 billion all by itself .
Note 2: Rick Santelli breaks down the stupidity on CNBC .