WARREN BUFFETT SUED BY OBAMA’S IRS
Obama and his rich pals think you are just another useful idiot like the Occupy (OWS) crowd.
While Obama seeks to enact the “Buffett Rule” to place a higher tax burden on families/small businesses who make $250K per year or more, his Internal Revenue Service (IRS) is suing Warren Buffett.
Obama’s pal just doesn’t want to pay his taxes… but he has no problem stumping for Obama and calling for a higher tax burden on families and small businesses.
“Get this: Uncle Sam is suing Warren Buffett’s company over taxes. Yes, taxes. The US government, in a little-followed case in Ohio, filed a lawsuit this month against a unit of Buffett’s Berkshire Hathaway, seeking $366 million in taxes and penalties. The Berkshire division at the centre of the suit is NetJets, the private-aircraft company that caters to the nation’s wealthiest – the people Buffett says should pay more in taxes.
It is an odd twist that a company controlled by Buffett – perhaps the most outspoken businessman in the country in support of raising taxes on the ‘mega-rich’ – is now in a dispute with the government over his company’s paying too little in taxes.”
But it gets better… Buffett’s NetJets has now filed a lawsuit against the IRS.
“Now, NetJets and its sister division, which have filed their own suit against the IRS, say they “are stuck with a $642 million-plus bill for past taxes the IRS never indicated they were required to collect”.
Obama’s rich friends do not want to pay their taxes, but they want to instill envy in the hearts of the uneducated and sing their “tax the rich” song.
Obama’s pal and Jobs Adviser, Jeffrey Immelt, has benefited since Obama took office through the same tax loopholes that Obama criticizes on the campaign trail. General Electric paid no Taxes in 2009, General Electric Paid No Federal Taxes in 2010.
“…GE’s success at avoiding taxes is nothing short of extraordinary. The company, led by Immelt, earned $14.2 billion in profits in 2010, but it paid not a penny in taxes because the bulk of those profits, some $9 billion, were offshore. In fact, GE got a $3.2 billion tax benefit.”
Before blindly jumping on the “Tax the Rich” bandwagon, people should ask two simple questions:
- If Obama makes people pay even more in taxes, will I get some of that money? (Answer = No).
- Why are Obama’s millionaire and billionaire friends unwilling to pay more in taxes themselves?
Maybe it’s time to rethink the envy that Obama is selling, or at least see it for the BIG LIE that it is.
Video: Milton Friedman: Why soaking the rich won’t work. Reference:
By DICK MORRIS – Published on TheHill.com on April 10, 2012
If Obama is reelected, the tax increase he and a Democratic Congress would impose on middle- and upper-middle-income Americans would be disastrous. It’s easy to lose sight of his tax plans because he has hidden them in a variety of nooks and crannies, including the Simpson-Bowles Commission Report, the Pelosi budget of 2009 and the various tax proposals advanced by his party. But, should he win, they will all come out of hiding, and together, they will be the principal legislative thrust of his efforts in 2013.
For a couple making $250,000, these tax hikes would add another $3,000 to $4,000 a month in taxes (depending on whether they were self-employed).
For a couple making $150,000, they would add another $1,200 to $1,400 per month.
Let’s all realize that Obama let a massive deficit accumulate precisely because he realized that doing so gave him the leverage he would need to raise taxes and increase, permanently, the size of government in America. Reagan let the deficit pile up so liberals couldn’t spend more money. Obama did so in order to make conservatives vote for higher taxes.
How will he tax us? Let us count the ways:
• Most basic, of course, will be an increase in tax rates. Those paying 33 percent will now pay 36 percent. People paying 35 percent will now pay 40 percent. Most people accept and expect that Obama will raise these brackets if he is reelected. But they don’t realize what else he will do.
• As he advocated in the 2008 campaign, he will eliminate the ceiling on wages that must be taxed for Social Security. Currently, wages are taxed at 6.2 percent (now, temporarily, at 4.2 percent) up to a ceiling about $100,000 per year in income. The ceiling rises with the cost of living. But Obama will eliminate the ceiling and subject all wages to FICA taxation. (In his campaign, he spoke of a “carve-out” for those making between $100,000 and $200,000, where income would be exempt from FICA, but don’t count on it.) For those who are employed, the increase in FICA taxes will mean an effective increase in their tax bracket of 6.2 percentage points. For the self-employed, it will mean a whopping 12.4 percentage point increase, bringing their effective tax rate, if they are in the top bracket, over 52 percent. Obama has refrained from addressing Social Security’s financial problems and will do so until after the election. But his solution will be higher taxes, not curtailed benefits.
• All deductions for mortgage interest, charitable giving and state and local tax payments would likely end for those making more than $250,000.
• Even for those making less than $250,000, the Bowles-Simpson recommendations call for replacing the current tax deduction for mortgage interest, charitable giving and state and local taxes with a tax credit. Usually 8 percent is mentioned as the tax credit level.
So add it up:
Home: $300,000 (mortgage interest: $20,000)
Property taxes: $15,000
Basic tax rate: +5% +$12,500
FICA on full income: +$18,600 ($9,300 if employed)
Mortgage interest +$ 6,500
Prop Taxes +$5,000
State income tax (9%) +$7,500
Total additional tax: +$50,100 ($40,800 if employed)
Home: $200,000 (mortgage interest: $10,000)
Property taxes: $10,000
Basic tax rate: +3% +$ 4,500
FICA on full income +$6,200 ($3,100 if employed)
8% credit, no deduction
Mortgage interest +$ 2,500
Property taxes +$ 2,500
State income tax (6%) +$ 1,500
(calculation replaces deduction at 33% bracket with an 8% credit)
Total additional tax: +$17,200 ($14,100 if employed)
Can we afford Barack Obama for four more years? No way! And don’t say you weren’t warned!