Secretary is Obama's pawn

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I listened to President Obama’s State of the Union address, and noted that he commented on Warren Buffett’s secretary’s income tax, and said he had the “Buffett Rule” that is simple math: Warren Buffett should pay taxes at a higher rate than his secretary.

Well Mr. Buffett’s secretary’s income tax forms are off-limits, and neither Buffett nor his secretary has said what she earns. For Warren Buffet’s secretary to pay at the 28 percent rate she would have to earn between $400,000 and $500,000. If Buffett’s secretary earns about $60,000 per year, her effective rate is about 14 percent.

Warren Buffett states his tax rate for 2010 was 11 percent. So Buffett’s secretary would be paying 3 percent more than Buffet. But Buffett’s income already has been taxed at the 30 percent corporate rate, making the rate of tax on Buffett’s income an actual 40 percent. Mitt Romney’s effective tax rate is 13.7 percent for 2010, so Buffett’s secretary would pay three-hundredths of 1 percent more than Romney if she earns about $60,000 per year.

Since Buffett and his secretary have become pawns in Obama’s class warfare, it would be nice for Buffett’s secretary to release her tax returns so we can determine if Obama is correct in his assertion, or once again exposing his ignorance.

David G. Brown

Augusta

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desertcat6
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desertcat6 01/31/12 - 01:27 am
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Wow. This sound amazing like

Wow. This sound amazing like many blogs and posts on-line since the Forbes piece on 25 JAN.

http://www.forbes.com/sites/paulroderickgregory/2012/01/25/warren-buffet...

southernguy08
499
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southernguy08 01/31/12 - 07:23 am
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Buffet's secretary IS one of
Unpublished

Buffet's secretary IS one of Obama's few pawns. Hey, he can't run on a record of accomplishment. Class warfare and fear are his only weapons to get his sorry self re-elected. PITIFUL!

johncapes
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johncapes 01/31/12 - 08:22 am
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What is really hard to

What is really hard to believe is that the Press lets Obama get away with these statements. Buffet pays capital gains taxes of 15% of less, because he does not have a salary. His secretary would have to be making a quarter of a million dollars with no tax deductions to be in her tax bracket. BS does not stand for Boy Scout,

charlesaiken
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charlesaiken 01/31/12 - 08:57 am
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Billionaire investor Warren

Billionaire investor Warren Buffett’s secretary Debra Bosanek has become the face of President Barack Obama’s so-called Buffett Rule, which maintains that the secretaries of wealthy Americans should not pay a higher tax rate than their boss.

Yet despite her presumably crushing tax burden, Bosanek and her husband last year were able to buy a second home in Arizona complete with a swimming pool and putting green.

The Bosaneks bought the 2,100-square-foot home in Surprise, a city outside Phoenix.

OJP
6788
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OJP 01/31/12 - 09:32 am
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It never ceases to blow my

It never ceases to blow my mind how willingly people defend and support the uber-wealthy in their assault on middle America.

harley_52
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harley_52 01/31/12 - 10:03 am
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Buffett's secretary is a red

Buffett's secretary is a red herring. Obama wants to raise the Capital Gains rate and he's using her as his vehicle. He doesn't care about the negative affects on the economy (which there surely will be) he's interested in pursuing his notion of "fairness" which should be interpreted to mean "income redistribution," or even "punishing the successful."

He has admitted as much.

southernguy08
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southernguy08 01/31/12 - 10:22 am
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OJP, and it never ceases to
Unpublished

OJP, and it never ceases to amaze me how those who've worked hard and succeeded are demonized by liberals. You want success? Go out, work hard, take chances like these people, and maybe you'll be one of them, instead of trying to punish them.

Carleton Duvall
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Carleton Duvall 01/31/12 - 11:09 am
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OJP, I defend the

OJP, I defend the uber-wealthy because they create jobs for the rest of us. Without a very rich man I would not be able to enjoy my golden years safe and secure. I went to work for him when I was forty and retired when I was sixty two and have had a good life for the last twenty five years. Could you have done that for me? All I had to do was work hard and do a good job and he did the rest.

dichotomy
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dichotomy 01/31/12 - 11:47 am
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There is no assault on middle

There is no assault on middle America by the "rich". Middle America is doing just fine. If you don't believe me, just go to any restaurant in Augusta on any evening of the week. Or go over to Augusta Mall and walk around a while. Now if you happen to be living off of the American taxpayer, drawing a welfare check, food stamps, and living in Section 8, then you might not be doing quite as well as "middle America". But in many cases this is a choice you made somewhere in your life. You quit school, you got pregnant in your teens, or you just decided that reporting into work and taking orders 5 days a week just isn't for you. You might not be doing real well, but you are not starving to death and you do have a roof over your head..........60% compliments of the "rich" and 40% compliments of the rest of us. The real "assault" that is going on right now is a socialist assault on people who have been good enough, smart enough, or lucky enough to make or inherit a lot of money. And the funny thing is that when we "punish the rich" it never ends up that way. The "tax the rich" liberals, who themselves are all very wealthy, always start talking about "taxing millionaires" in their rhetoric, and dribble down to taxing "people who make over "$250K" when they are pressed for details, and then get down to "people making over $100K" by the time it's put in writing in the tax bill. In other words, the class warfare always ends up getting paid for by the MIDDLE class. And in the end the rich socialist Democrats always end up building the loopholes for the really rich into that same tax law that raises the taxes on the middle class but still allows them to escape paying. That is the REAL assault on "middle America". If you don't believe me, go ask Senator Kerry. You can probably find him on his yacht down in Rhode Island where he is avoiding paying property taxes on his boat in his home state of Massachusetts. Yes, there is an assault on middle America but it ain't coming from where the Democrats are telling you it is. The rich will always be rich and will always be able to avoid paying a high tax rate. The assault on middle America is coming from the other end......it's coming from the "gimmee more" America sector.

Carleton Duvall
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Carleton Duvall 01/31/12 - 12:57 pm
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Well said ,dichotomy. If I

Well said ,dichotomy. If I might add , those that are complaining about the rich more than likely would not be willing to make the sacrifice that it takes to become rich. It ain't easy, believe me.

TParty
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TParty 01/31/12 - 01:48 pm
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charlesaiken: Can you source

charlesaiken: Can you source that? I would love to throw that into the faces of crying liberals.

Carleton Duvall
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Carleton Duvall 01/31/12 - 02:06 pm
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OJP
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OJP 01/31/12 - 03:45 pm
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@Carleton Duvall: Demand for

@Carleton Duvall:

Demand for goods and services is the primary engine of business growth and thus job growth. Ask any small business owner whether he or she creates jobs when he or she just wants to do so, or whether he or she creates jobs when there is an increased demand and the possibility of higher profits. As a small business owner myself (and the child of two separate small business owners), I can unequivocally say it is the latter (in my experience).

Therefore, the consumer class is what creates jobs. And what is the largest source of consumers in this country? The middle class.

All businesses need people to buy what they are selling. Without consumers, rich people would sit around all day doing nothing. Without rich people, some not-rich entrepreneur would step in and get the ball rolling.

And the middle class has taken a beating over the last 3 decades in terms of wages - which, of course, diminishes their ability to buy. Here's a good graph illustrating what has happened: https://motherjones.com/files/images/change-since-1979-300.gif

Business owners - like your boss - should be commended and rewarded for their initiative. But it's absurd to believe that we are the equivalent of Santa Claus for jobs. We don't magically make them - we make them in response to the market in an attempt to make more money.

And the most depressing and amazing thing about all this? This timeless war on the non-elites by the elites? If you point it out, YOU are accused of class warfare! Ha!

Carleton Duvall
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Carleton Duvall 01/31/12 - 02:18 pm
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Good commentary, OJP.

Good commentary, OJP.

TParty
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TParty 01/31/12 - 02:47 pm
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Thanks for the link Carleton,

Thanks for the link Carleton, and agreed OJP. Well said.

harley_52
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harley_52 01/31/12 - 03:00 pm
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dichotomy said "The assault

dichotomy said "The assault on middle America is coming from the other end......it's coming from the "gimmee more" America sector."

Great post, as usual, dichotomy. I'd like to add something.

There's another attack on the middle class and it's coming directly from the Obama Administration. It's the purposeful attack on manufacturers and manufacturing jobs here in America. The Administration's tax policy has insured businesses who manufacture goods in America cannot compete with companies who manufacture the same products in foreign countries and then export them to the United States. Thanks to big labor, the cost of labor for American plants is significantly higher, but even without our corporate income taxes and the high costs of trying to comply with a steady torrent of rules and regulations aimed at businesses have made the climate here untenable for many manufacturers. When they have to move their factories overseas in order to make a profit, the jobs go with them and those jobs have long been the jobs that kept the American middle class employed.

And all of it suits Obama's agenda very well. Fewer jobs, more people dependent on the government, and more people convinced it's all the fault of the evil rich means more Obama supporters at the polls and rioting in the streets.

Carleton Duvall
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Carleton Duvall 01/31/12 - 03:57 pm
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OJP, I looked at the graph

OJP, I looked at the graph that you referenced . It is compelling, I must admit. However, I am not sure that I would hang my hat on anything from Mother Jones, a very liberal, pro labor publication to say the least.

TNTHOMSON
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TNTHOMSON 01/31/12 - 04:30 pm
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The often commented "I've

The often commented "I've never been hired by a poor person" neglects how many government jobs are created to provide services for the 'poor'. You've even got to hand it to the Democrats. They really know how to create and manage a perpetual base of support playing their class warfare and race cards.....

itsanotherday1
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itsanotherday1 01/31/12 - 05:19 pm
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OJP, so then, by your

OJP, so then, by your reasoning of supply and demand; the "stimulus" money wee-wee'd down the drain at a cost of $200K/ job or some such idiocy, would have been much better spent in TAX CUTS to the people who would spend it, stoking the demand for goods and services?

madgerman
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madgerman 01/31/12 - 07:34 pm
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It is refreshing to see that
Unpublished

It is refreshing to see that a secretary making a hypothetical $60K a year is actually paying the same rate of taxes as a person making over $29 million. Yeah that is real fairness in tax laws. I didn't see anywhere where the secretaur even said anything about the issue, so why would she divulge her tax records, I am sure David has no intention of releasing his. I noted that David assumed that Buffet paid a corporate rate of 30 percent, but is that before or after deductions for his jets, yachts, limousenes and vacations around the world? P.S. David should also understand that a corporation is actually owned and operated by several people - unfortunately.

carcraft
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carcraft 01/31/12 - 07:50 pm
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Well the other fun thing

Well the other fun thing about Buffet is that his Company you know Berk something or other may owe back taxes to the rate of about 1 BILLION dollars, gee if Buffet's company only paid it's LEGAL taxes..just saying..May be Obama could hold up Gaitner, Dashel, Rangle, and the other White house aids that have had trouble ACTUALLY paying their taxes instead of rideculing those that do..

carcraft
26262
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carcraft 01/31/12 - 07:53 pm
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madgerman-Yes corperations

madgerman-Yes corperations are owned by the stock holders, of which Buffet is one, hence he has already paid 30% on the profits from the corperation and then he is charged 15% more on his share (dividends) when the profets are split with the stock holders. This gives corperate profits an effective tax rate of 45%.

southernguy08
499
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southernguy08 01/31/12 - 10:13 pm
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ITSANOTHERDAY, great post!
Unpublished

ITSANOTHERDAY, great post! Obama knows as much about growing an economy as I do about growing a catfish farm.

OJP
6788
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OJP 02/03/12 - 09:12 am
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@Carleton Duvall: Versions of

@Carleton Duvall:

Versions of the graph can be found from other sources. Here's one showing the increase in productivity but stagnation of wages:

http://voices.washingtonpost.com/ezra-klein/productivityincome.jpg

And here's one showing increases in income for the top 1% and everyone else:

http://voices.washingtonpost.com/ezra-klein/incomgegainsstraight.jpg

Both are from the Washington Post.

OJP
6788
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OJP 02/03/12 - 09:29 am
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itsanotherday1: I assume you

itsanotherday1:

I assume you don't know that approximately 40% of the stimulus bill WAS tax cuts? From the Wall Street Journal: http://online.wsj.com/public/resources/documents/STIMULUS_FINAL_0217.html

Government spending and tax cuts both are useful in stimulating the economy, as long as they put money in the pockets of middle class America. Government spending can do so via government works projects such as what took place after the Great Depression, or massive increases in the defense budget such as what took place during WWII. Both of those spending programs gave money to Middle America.

Tax cuts - assuming they don't go to the richest Americans - also increase the buying power of the middle class.

Dollar for dollar though, I'd rather the government hire someone out at Vogtle for $60,000 than give 600 people a $100 tax cut. The $60,000 is more stimulative because it likely brings someone out of unemployment (even if it is down the line as a series of people switch jobs to fill the new one).

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