RSS Follow Become a Fan

Recent Posts

Q&A with Sen. Tom Cotton
Q&A with Sen. Ron Wyden
Q&A with Rep. Louie Gohmert
Q&A with Rep. Ted Lieu
Q&A with Sen. Tim Scott


Adam Kinzinger
Adam Weigold
Affordable Care Act
Agenda 21
Ajit Pai
Al DeKruif
American Enterprise Institute
American Legislative Exchange Council
America's Future Foundation
Amy Koch
Andrea Kieffer
Andrea Mitchell
Ann Coulter
Arlen Specter
Arne Carlson
Atlas Shrugged
Bad Legislators
Bad Republicans
Barack Obama
Barbara Banian
Bashar al-Assad
Ben Ginsberg
Ben Golnik
Ben Wiener
Beth Cobert
Bill Jungbauer
Bill Paxon
Bill Pulkrabek
Bob Barr
Bob Corker
Bob Davis
Bob Gunther
Bobby Joe Champion
Book Reviews
Brandon Petersen
Brandon Sawalich
Brian Johnson
Bron Scherer
Brookings Institution
Budget Control Act
Carla Nelson
Cass Sunstein
Cato Institute
Chamber of Commerce
Charles Chaput
Charlie Rangel
Chip Cravaack
Chris McDaniel
Christine O'Donnell
Christopher Painter
Civil Forfeiture
Claire Robling
Climate Change
Common Cause
Cynthia Lummis
Dan Hall
Dan Severson
Dave Brat
Dave Senjem
David Fitzsimmons
David Sturrock
Department of Justice
Department of Labor
Diane Johnson
Diane Rehm
Dick Armey
Donald Trump
Ed Morrissey
Edward True
Elijah Cummings
Erick Erickson
Erika Harold
Evie Axdahl
Federal Budget
Federal Communications Commission
Francesca Chambers
General Electric
Geoff Michel
Global Warming
Good Legislators
Greg Davids
Growth & Opportunity
Growth and Opportunity Report
Haley Barbour
Harry Reid
Henry Barbour
Heritage Foundation
Hilda Solis
House Amendment 111
Iowa Caucus
Iowa Republican Party
Jabhat al-Nusra
Jake Duesenberg
Janet Beihoffer
Jason Chaffetz
Jason Lewis
Jeff Bingaman
Jeff Flake
Jeff Johnson
Jeff Sessions
Jeh Johnson
Jim Abeler
Jim Oberstar
Jim Taylor
Joe Scarborough
John Blatnik
John Boehner
John Chafee
John Cornyn
John Gilmore
John Howe
John King
John Kline
John Kriesel
John McCain
John Nolte
John Yoo
Jonathan Merritt
Josh McKoon
Julianne Ortman
Julie Rosen
Justin Amash
Katrina Pierson
Keith Downey
Keith Ellison
Kelly Fenton
Keystone XL
King Banaian
Kurt Bills
Kurt Daudt
Kurt Zellers
Labor Department
Laura Ingraham
Lee Goodman
Liberal Republicans
Linda Killian
Loretta Lynch
Lost Generation
Louie Gohmert
Marco Rubio
Margaret Cavanagh
Marianne Stebbins
Mark Buesgens
Mark Dayton
Mark Foley
Mark Kennedy
Mark Meadows
Martin O'Malley
Marty Seifert
Mary Franson
Matt Dean
Matthew Feeney
Media Bias
Mercatus Center
Michael Brodkorb
Michael Cummins
Michael Gerson
Michael Kubesh
Michael Mukasey
Michele Bachmann
Mike Benson
Mike O'Rielly
Mike Osskopp
Mike Parry
Mike Pompeo
Mike Sommers
Minimum Wage
Minnesota Budget
Minnesota Conservatives
Minnesota Legislature
Minnesota Republican Party
Minnesota Tea Party Alliance
Mitch Berg
Mitch McConnell
Mitch Pangerl
Mitt Romney
Modern States Education Alliance
Morrie Lanning
Nancy Pelosi
National Security
Neal Peterson
Net Neutrality
New York Times
Newt Gingrich
Norm Coleman
Norm Ornstein
Office of Fossil Energy
Orrin Hatch
Pat Anderson
Pat Buchanan
Pat Garofalo
Pat Shortridge
Paul Demko
Paul Gosar
Paul Koering
Paul Krugman
Paul Teller
Pete Hegseth
Pete Nelson
Pete Sessions
Peter King
Phil Krinkie
Pine City
Pine County
Pine County Republicans
Politics in Minnesota
President 2012
Rand Paul
Raul Labrador
Ravi Zacharias
Reason Magazine
Reince Priebus
Religious Freedom Restoration Act
Renee Ellmers
Republican Liberty Caucus
Republican National Convention
Republican Party of Minnesota
Republican Study Committee
Rich Murray
Rick Nolan
Rick Perry
Rick Santorum
Rick Weible
Right to Work
Rod Hamilton
Rodney Davis
Roger Crawford
Ron Carey
Ron DeSantis
Ron Erhardt
Ron Latz
Ron Paul
Ron Wyden
Rory Koch
Rudy in the Media
Ryan Winkler
Scott Dibble
Scott Honour
Sean Duffy
Sharon Angle
Simply Right
Solar Power
Star Tribune
State of the GOP
Steny Hoyer
Steve Gottwalt
Steve Hensley
Steve Jobs
Steve Largent
Steve Perkins
Steve Scalise
Steve Smith
Steven Chu
Sue Jeffers
Tad Jude
Tarryl Clark
Tax Foundation
Taxpayers' League of Minnesota
Tea Party
Ted Cruz
Ted Lieu
Ted Lovdahl
Terry McCall
Thad Cochran
Thomas Mann
Thomas Massie
Thomas Miller
Thomas Sowell
Tim Cook
Tim Faust
Tim Griffin
Tim Huelskamp
Tim Kelly
Tim Pawlenty
Tim Scott
Title II
Tobacco Taxes
Todd McIntyre
Tom Clougherty
Tom Coburn
Tom Cotton
Tom DeLay
Tom Emmer
Tom Graves
Tom Harkin
Tom McClintock
Tony Sutton
Trans-Alaskan Pipeline
Twila Brase
Vin Weber
Virginia Foxx
Walter Mondale
Warren Buffett
Will Hurd
William McBridge
Xi Jinping
Yvonne Prettner Solon
Zygi Wilf
powered by

Rudy Takala's Columns

Who is to Share the Pain?

This is My latest column, presently up on RenewAmerica.
Republican lawmakers spend a significant amount of time talking about the right of affluent citizens to retain the money that they earn. Similarly, Democrats spend a lot of time going on about the idea that no one should be allowed to get too far ahead, regardless of how hard they work.
For example, in a recent speech, President Obama repeated a common cliché. “Warren Buffett's secretary shouldn't pay a higher tax rate than Warren Buffett. There is no justification for it,” he said. The Republican response has been traditional. House Speaker John Boehner replied, “I don't believe that class warfare is leadership…. We could get into this tax the rich, tax the rich, but that is not... the basis for America.”
A headline on the DrudgeReport reported on the story as it continued to develop. "Obama derides fat cats, then meets them for dinner to collect cash,” it read.
According to facts reported by the Wall Street Journal and Politico, tickets to the fundraising dinner featuring Obama cost $35,800, with $5,000 going to Obama’s re-election campaign and the rest going to the Democratic National Committee.
It is portrayed, and justifiably so, as an instance where we should be surprised and disdainful of the President’s dishonest hypocrisy. But another worthwhile question may be, is the President the only charlatan in the situation? Why do wealthy contributors keep on contributing to politicians who seemingly want to take more of their money?
Examples of Democrats maligning the “rich” while still getting contributions from the group are ample. That was especially evident earlier this year when the President proposed a tax on private jet owners that would have amounted to a mere $300 million per year in revenue. The President supported the tax simply as a means of symbolically harassing affluent citizens; Republicans defeated the proposal for equally symbolic reasons.
It speaks poorly of our political system that anyone believes their neighbor’s earnings should be harvested by a wasteful bureaucracy simply for sport. However, how much energy should Republicans expend in defending the “rich”? Should it be proportionate to the effort that the “rich” put in to defending themselves? Why doesn’t that effort seem to be present in people like Warren Buffett?
For that matter, why do people like Warren Buffett tell falsehoods about their own taxes in trying to convince people that taxes should go up? Buffett claims that he paid $6.9 million in taxes last year, or 17.4 percent of his earnings, compared to an income tax rate of about 36 percent paid by his employees. “My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice,” Buffett wrote in an op-ed.
According to an investigation by the New York Post, his claim didn’t take into account the taxes he paid on the money he had to earn in order to invest. That was taxed as corporate income, amounting to a 35-percent rate. On the earnings he received from the money after he invested it, he paid 15 percent capital-gains tax rate. All together, that amounted to about 45 percent of his money going to taxes.

According to the Tax Policy Center, “46 percent of households, mostly low- and medium-income households, will pay no federal income taxes this year.” In other words, the top 54 percent of households pay 100 percent of federal income taxes.
Low-income households are not paying much in taxes, so Buffett's claim is false. So what motivation does he have to lie? Could the reason the rich support “spreading the wealth around,” as it was famously described by Obama during his 2008 campaign, be that all of the wealth gets “spread” back to them?
In the news developing about wireless company LightSquared, The Hill reports, “Emails between [LightSquared] and the White House make mention of the fact that the company's CEO would be attending Democratic fundraisers in Washington, and administration officials met with executives from the company on the same day that CEO Sanjiv Ahuja wrote a $30,400 check to the Democratic National Committee.”
Rep. Darrell Issa (R-CA), chairman of the Oversight and Government Reform Committee responsible for investigating, observed, “This is another reason that crony capitalism … is dangerous, because they're going to pick winners that they ideologically, or in some cases because they support their candidacy, want to see win.”
In short, it is fine that Republicans advocate for lower taxes. It is accurate to say that taxing the rich is not the basis of America. But political contributions have become the basis for government appropriations in America, and some of the richest tycoons will continue to voice their support for “sharing the pain” until that reality ends.

0 Comments to Who is to Share the Pain?:

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment
Website Builder provided by  Vistaprint