Tuesday, September 20, 2011
The Obama Administration is now setting tax policy based on Warren Buffett's belief that he does not pay enough in income taxes. Lovely. If Warren Buffett is undertaxed he can stop claiming the deductions that have lowered his effective tax rate and he can look at line 75 of his tax return that allows him to send in extra money if he wants to.
Mr. Buffett claims he and other millionaires do not need the money. He could also give that money he does not need to charity or to a new business that is struggling to get started.
Mr. Buffett - and by extension, Barack Obama - should understand that different people derive different 'utility' from each dollar earned. If Buffett has very little utility for his extra dollars that does not mean the millionaire next to him has the same utility for their dollars.
To impose, unilaterally, a new tax increase that presupposes all millionaires are the same and that all millionaires do not need the money and that all millionaires would not put their money to productive use is not only patently stupid but indicative of the fact that President Obama is economically ignorant on a scale we have not seen since FDR.