I am fed up with the president of the United States, one Barack Hussein Obama, completely lying to the citizens of this country about the current tax system with him always harking back to Warren Buffett not paying as much in taxes as his very own secretary.
Mr. Obama, stop with the damned lies and tell the truth.
As of 2011, the tax structure on earned wages is set up as such:
10% on taxable income from $0 to $8,500, plus
15% on taxable income over $8,500 to $34,500, plus
25% on taxable income over $34,500 to $83,600, plus
28% on taxable income over $83,600 to $174,400, plus
33% on taxable income over $174,400 to $379,150, plus
35% on taxable income over $379,150.
What Barack is saying that Buffet’s 15% cap gains tax is a lower rate than the secretary’s ordinary income rate. VERY MISLEADING! If his secretary has capital gains she pays 15%, just like Buffet. And on their ordinary income they both pay the same rate until a point that one has higher ordinary income that exceeds the other. I believe that Buffet’s salary is $197,000.00, which would be taxed as ordinary income.
Capital gains tax rate is only 15% because the government wanted to stimulate investment in companies which produce the majority of jobs for american citizens. Guess what happens if that rate is raised to an excessive amount? People will stop putting as much money into investments because the risk begins to outweigh the reward of investing your hard earned money.
Some people argue that capital gains taxes should be 0% because the monies people are investing has already been taxed at the rates outlined above.
This is how it works. Let’s say you earn 50k a year from your job. Your 50k falls into the 25% federal tax bracket, so you fork over that amount to the federal government (excluding any deductions you may have). Let’s also assume you want to put money into a safe investment that will grow over time for your retirement, so you invest another 10% of your money into the stock market. If your stock investments increase in value, you have to pay capital gains taxes on your investments when you sell the shares. If your investment loses value, you obviously do not have to pay capital gains on your loss.
So, your hard earned wages which you have already been taxed on are taxed again at the capital gains tax rate, yet you can only write off 3k a year in losses.
For Obama to say Buffett or anyone whose majority of income is from capital gains, doesn’t pay as high a rate as their employees, it is very very misleading. Buffett has already paid taxes on the money he has earned at the federal rate, and the capital gains taxes he has to pay is nothing but an additional tax he has to pay.
The truth is, if Buffett didn’t want his secretary to pay a higher rate, he could just as easily decide to pay her in stock compensation (which is taxed at the capital gains rate of 15%) instead of salary which is taxed at the higher rates.
Obama still does not even realize what is wrong with the country. The country, especially him, is spending too much money. The country does not have a revenue problem, what we have is a spending problem. Obama has spent 5 trillion dollars in only 3 years in office. The previous presidents combined had only spent 11 trillion dollars.
This president is responsible for nearly 33% of the total outstanding debt that our country currently owes.
For anyone even considering voting for him, I not only question your intelligence, but I also question your morality. How can you, with good conscience, put someone back into office with such a horrible record on everything that he has taken on?
This man has zero accomplishments in his 3 years into office. Unemployment is still sky high. Health care costs continue their upward trajectory. Gas prices continue their higher trend. Food prices continue to increase.
All he does is try to spit out the typical class warfare garbage, trying to pit the poor people against the wealthy people. Instead of putting forward growth policies that will allow poor people to move into the middle class and middle class people to move into the wealthy class, all he wants to do is try to blame the wealthy and upper middle class for their success.
He wants to take money out of their pockets and give it to the less fortunate people.
As a country, when did we become so envious of the wealthy that we want their hard earned money? This class warfare business has to stop. The wealthy need incentives to invest their hard earned monies into additional businesses to create jobs for the working people. This isn’t done by castigating the rich people as evil and then try to take as much money away from them as you possibly can.
Wake up people, and educate yourself as to the workings of the economy. You could tax the wealthy 100% and all that money would barely run the government for a little more than half a month. Did you know that?
I will repeat it.
If you tax the wealthy 100%, you couldn’t run the government for more than 20 days with all that money.
So, do you realize the president is spewing nothing but class warfare to try to build up the envy of the people for the sake of being re-elected. Sure, he would like to get his hands on additional revenue from the rich people for his pet social welfare programs, but that isn’t what his ultimate goal is.
He spouts this garbage only because he wants to get the free-loaders and bleeding hearts to vote him back into office next year.
Do not fall for the empty rhetoric this time around. Seek out the truth, and the truth shall set you free.