Monday, October 3, 2011

FOD 2011.10.03

When you've lost Black Entertainment Television (BET), you're really in trouble.
Robert Johnson, the founder of BET television, says President Barack Obama needs to stop taking shots at the wealthy.

Appearing with FedEx CEO Fred Smith on "Fox News Sunday," Johnson said that demagoguing the wealthy is not the way to get people to like you.

"I think the president has to recalibrate his message," Johnson said. "You don’t get people to like you by attacking them or demeaning their success. I grew up in a family of 10 kids, first one to go to college, and I’ve earned my success. I’ve earned my right to fly private if I choose to do so. And by attacking me, is not going to convince me that I should take a bigger hit because I happen to be wealthy."

Although he didn't directly address it, Johnson seemed to frown upon Obama's plan to hike taxes on the wealthy - the so-called "Buffett Rule."
Which brings up the point that obama and Buffet are 'misrepresenting' the situation.

Billionaire investor Warren Buffett isn’t as undertaxed as he and President Obama seem to think.
Buffett recently said that he paid only $6.9 million in taxes last year -- just 17.4 percent of his earnings, compared to an income tax rate of about 36 percent paid by his employees.
First of all, if Buffet's employees are paying income tax rates of 36% then their annual income is somewhere north of $380,000.

Second, much of Buffet's income is from investments, which are (a) risky, (b) taxed once as corporate income, and (c) taxed a second time as individual income, albeit at a capital gains rate of 15%.
First, Buffett had to make the money he invested. Those earnings were taxed as corporate income, at about a 35-percent rate.

Then, Uncle Sam took another cut when Buffett invested the money and earned a profit. That’s when Buffett paid the 15 percent capital-gains tax rate.

All told, after combining corporate taxes and capital gains taxes, Buffett forked over about 45 percent of his earnings.
If obama were to propose meaningful tax code reform that eliminated loopholes - including such things as subsidies for 'green' investments - then I'd agree. But that's a far call from raising tax rates. Similar to BET's Johnson, I've worked hard to improve my lot in life and get where I am today. While I'm not in the same league as Johnson or Buffet, I would like to keep most of what I earn, and not see a greater portion of my income flushed down the toilet that is government spending.

It seems clear that obama is more interested in fomenting class warfare than in solving the problems that face this country. It's definitely time to hope for change...