Julian2
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Posts posted by Julian2
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Stop Coddling the Super-Rich
By WARREN E. BUFFETT
Published: August 14, 2011
OUR leaders have asked for “shared sacrifice.†But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,†thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.
These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.
Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.
If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot.
To understand why, you need to examine the sources of government revenue. Last year about 80 percent of these revenues came from personal income taxes and payroll taxes. The mega-rich pay income taxes at a rate of 15 percent on most of their earnings but pay practically nothing in payroll taxes. It’s a different story for the middle class: typically, they fall into the 15 percent and 25 percent income tax brackets, and then are hit with heavy payroll taxes to boot.
Back in the 1980s and 1990s, tax rates for the rich were far higher, and my percentage rate was in the middle of the pack. According to a theory I sometimes hear, I should have thrown a fit and refused to invest because of the elevated tax rates on capital gains and dividends.
I didn’t refuse, nor did others. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.
Since 1992, the I.R.S. has compiled data from the returns of the 400 Americans reporting the largest income. In 1992, the top 400 had aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum. In 2008, the aggregate income of the highest 400 had soared to $90.9 billion — a staggering $227.4 million on average — but the rate paid had fallen to 21.5 percent.
The taxes I refer to here include only federal income tax, but you can be sure that any payroll tax for the 400 was inconsequential compared to income. In fact, 88 of the 400 in 2008 reported no wages at all, though every one of them reported capital gains. Some of my brethren may shun work but they all like to invest. (I can relate to that.)
I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.
Twelve members of Congress will soon take on the crucial job of rearranging our country’s finances. They’ve been instructed to devise a plan that reduces the 10-year deficit by at least $1.5 trillion. It’s vital, however, that they achieve far more than that. Americans are rapidly losing faith in the ability of Congress to deal with our country’s fiscal problems. Only action that is immediate, real and very substantial will prevent that doubt from morphing into hopelessness. That feeling can create its own reality.
Job one for the 12 is to pare down some future promises that even a rich America can’t fulfill. Big money must be saved here. The 12 should then turn to the issue of revenues. I would leave rates for 99.7 percent of taxpayers unchanged and continue the current 2-percentage-point reduction in the employee contribution to the payroll tax. This cut helps the poor and the middle class, who need every break they can get.
But for those making more than $1 million — there were 236,883 such households in 2009 — I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more — there were 8,274 in 2009 — I would suggest an additional increase in rate.
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.
Warren E. Buffett is the chairman and chief executive of Berkshire Hathaway.
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Watched the Bourne trilogy (Identity, Supremacy, Ultimatum) last night. Got to bed about 4am this morning. Have watched them all individually a few times each but never one after the other. Three of the best action films ever imho.
I've never watched any of these but have heard them so highly spoken of I'll look around for the set.
I watched True Grit yesterday, the new one. Wasn't bad but then I like Jeff Bridges.
Then last night I dug out and watched "Support Your Local Sheriff".
Still hilarious after all these years.
He's got a heart as big as the whole outdoors, but he don't have one brain in his poor old head.
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Thanks for that, I started think that because I was the only one who thought this it must be wrong.
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Is the Danish Baker's still going?
Haven't stopped off there for a few years now.
And no, it's not a bakery....
Other than that a slow walk along the river front will surely reveal establishments with people drinking. (And girls fluttering their eye-lashes at them).
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Hardly a fantasy world, she could have had the fantasy most young people dream of.
It's easiest to say that people with an addictive personality belong on the garbage heap though.
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After the "Monmouth Rebellion" in 1685 over 800 English rebels were sent to the West Indies as slaves.
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...and also on the receiving end of another mutiny.
There is a school of thought these days making him out to be the aggrieved party but he did have a tendency to be in the wrong place at the wrong time.
Apparently he was also involved in the Spithead and Nore mutinies.
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Decriminalization is a big step for a lot of folks. Too big. In the interim I think what we can do is modify punishment. Instead of sending people caught with slightly over personal use of pot or coke or whatever to prison is to put those folks under house arrest.
There are many people who otherwise were employed and contributing members of society who are now in prison. We ended up with hundreds of thousands of folks who were making..lets say..on average of 30k a year, just to pull a number out of the air, and contributing to the economy to people who now cost on average of 60k a year to the taxpayer to house and feed.
The person with too much pot loses their job and ends up costing Mr. and Mrs Taxpayer 60k to house and feed and when the get out they can't get the same job back because they now have a criminal record.
My idea, until we decriminalize is instead of sending them to jail, let them still be contributing members of society and have them be on house arrest for 12 hours each work day and 16 hours on the weekends. Lets say the are free from 8AM to 8PM. Allows them to keep their job, then for a number of time, 2 months, 3 months, whatever they wear an ankle braclet. Trust me, you restrict someone to their home and it becomes a pain in the ass. They come in for a pee test once a week, and any violation can mean an extension of house arrest or make them pick up trash on the highway or tutor kids or whatever. Make them contribute.
I would also allow them to have the record expunged after a period of time so they can still get a good job.
I grew up in a neighborhood that was known as a heroin neighborhood. Things got bad when it changed to crack.
Why? You can function on heroin. At least many people can, it depends on your body chemistry but there were people in our neighborhood that had and maintained a mortgage, a job and were recreational, often weekly users of heroin. Its very possible. Many jazz artists were hooked on heroin for years and functioned. Entertainers and some rock stars.
The thing with crack is that you can't function while on it. Everyone I've seen on it were completely out of it. They could not maintain any job or function in society at all while on it.
When the neighborhood changed to crack in the '80s, break ins skyrocketed. We never had break ins before. Heroin had a code. I'm not saying heroin is good mind you, just that the guys who dealt it, only sold to adults and didn't sell on street corners. There was a house you went to buy. Crack was being sold by kids, often to kids and sold in the open on the corners. Because you can function on heroin you can keep a job so you can feed your habit. On crack, you could not hold down a job so you had to steal. First from your own family then after they kicked you out, you stole from neighbors or anyone you could find.
Also, I think you will find that after decriminalization that there will still be a social stigma and that there will be an unofficial ban. Employers do drug testing now. More will do drug testing after decriminalization. I think that will be the check against using. If you want to get a job you better be clean.
Good post Steve, I doubt you will get a lot of support though.
I agree about crack users, they're either out and incapable or "jonesing"
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Not convicts Flash, Pitcairn was established by navel seamen blinded to reason by a surplus of brown crumpet.
(It still happens I believe.)
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I have to agree that this is possibly a cure for dishonesty, Australia was founded on the convict transportation system and look at the noble, honest and hard working race that came about.
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I think that there's a case for controlling drug use legally.
I saw some reports on "heroin trials" in Europe where addicts were given the drug in clinic type situations.
Apparently junkie type crime dropped dramatically and many addicts went off welfare to take up useful lives.
Of course some people are just fucking thieves and there's no cure for that.
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Blinded Muslim pleads to save his attacker's life
A MUSLIM who was shot and blinded by a white supremacist days after the 9/11 attacks is suing the governor of Texas to prevent his assailant from being executed.
Rais Bhuiyan says his rights as a victim were ignored when his attacker, Mark Stroman, was sentenced to death after a shooting spree at a Dallas convenience store that left two of his colleagues dead. Stroman, who claims he went on the rampage "against Arabs" in revenge for the death of his half-sister on September 11, 2001, is due to be executed on Wednesday after his final appeal was denied.
Mr Bhuiyan contends state prosecutors "pushed forward with the death penalty" without consulting him or the families of the other victims as required under the Texas Crime Victims' Bill of Rights.
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I knew a retired policeman who used to argue for making drugs legal. He said the junkies would go wild, OD, and that would be the end of them. It would reduce crime considerably.
There's a school of thought that the ease of manufacture of crack cocaine is responsible for the reduced crime rate claimed for some US cities.
Not only is it lethal personally but users tend to kill others around them as well.
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I'm not old enough to remember NP.com
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Play your cards right and I may even bookmark the site again....
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Lesson learned. I broke up with my girlfriend and tried to be peaceful. Told her I was leaving, taking my possessions at that was that. She called the police. told them that this was her house. Police said I could not take anything out of the place, not even my clothes or persomal belongings. He would have arrested me if I hadn[t brought some friends as witnessses. Bottom line walk away and stay out of trouble.
I had more trouble breaking up with my Aussie wife than my previous two Asian g/fs but I kept joint property to a minimum in those cases.
Just packed for a "long trip" and sent them a text/SMS message when I was at a safe distance. (Out of projectile range).
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Instinct on HBO last night.
Great cast, Anthony Hopkins, Cuba Goodings Jnr and Donald Sutherland.
Anthropologist Hopkins has nervous breakdown after living with gorillas and ends up in prison, psychiatrist Goodings helps out.
Good prison scenes.
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I've been through Phitsanulok several times on the bus, always well after midnight.
One of the things that caught my eye was the number of lively looking places with strings of coloured lights even at that time of night.
These would certainly be Thai karaoke bars and can be great fun provided you can speak a little Thai and don't expect a public blow job.
I've yet to find a Thai city that doesn't have tuktuk drivers with some English skills so they would be the boys to take you to suitable establishments.
Do a deal for the night, you can cruise and it also reduces the chances of being stranded God knows where at 4am.
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The Golf Game
The Swede's wife steps up to the tee and, as she bends over to place her ball, a gust of wind blows her skirt up and reveals her lack of underwear.
"Good God, woman! Why aren't you wearing any skivvies?" Ole demanded.
"Well", she said, "you don't give me enough housekeeping money to afford any."
The Swede immediately reaches into his pocket and says, "For the sake of decency, here's a fifty. Go and buy yourself some underwear!"
Next, the Irishman's wife bends over to set her ball on the tee.
Her skirt also blows up to show that she, too, is wearing no undies. "Blessed Virgin Mary, woman! You've no knickers. Why not?"
She replies, "I can't afford any on the money you give me."
Patrick reaches into his pocket and says, "For the sake of decency, here's a twenty. Go and buy yourself some underwear"!
Lastly, the Scotsman's wife bends over. The wind takes her skirt over her head to reveal that she, too, is naked under it.
"Sweet mudder of Jaysus, Aggie! Where ta friggin' hell are yer drawers?"
She too explains, "You dinna give me enough money ta be able ta affarrd any."
The Scotsman reaches into his pocket and says, "Well, fer the love o' decency, here's a comb... Tidy yerself up a bit!"
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A TV INTERVIEW WHICH WAS NEVER AIRED IN THE UK ....
You know there are so many TV channels, each starved of new programs.
In a rural program for farmers, a female TV reporter seeking the main cause of Mad Cow disease,arranged for an interview with a farmer who may have some theories on the matter ..
The interview was as follows:
The lady reporter: "I am here to collect information on the possible sources of Mad Cow Disease. Can you offer any reason for this disease?"
The farmer stared at the reporter and said: "Do you know that a bull mounts a cow only once a year?"
Reporter (obviously embarrassed) : "Well, sir, that's a new piece of information.. but what's the relation between this phenomenon and Mad Cow disease?"
Farmer: "And, madam, do you know that we milk a cow twice a day?"
Reporter: "Sir, this is really valuable information, but what about getting to the point?"
Farmer: "I am getting to the point, madam.
Just imagine, if I was playing with your tits twice a day ... and only screwing you once a year, wouldn't you get mad?"
The program was never aired . . . .
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I just watched "Scarecrow" on TCM, a 70's Al Pacino and Gene Hackman movie.
Most enjoyable, I like both actors and hadn't seen this one before.
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Anyone remember "The High Road To China"?
Picked it up in Oz last month and finally got around to watching it (again).
Still worth a look.
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Did you hear about the thoughtful Scotsman
who was heading out to the pub? He turned
to his wee wife before leaving and said, "Chrissie,
put your hat and coat on lassie."
She replied, "Aw Jock that's nice! Are you taking
me to the pub with you?'
'Nah, Jock replied, I'm switching the central
heating off while I'm oot.'
What Film (Movie) Have You Just Watched?
in The board bar
Posted
I picked up three movies for 99B out of a remainder bin in the new mall the other day.
I watched one of them, "The Man Who Wasn't There" last night, a very dark drama with Billy Bob Thornton as a cuckolded husband who blackmails his wife's lover resulting in murder.
Wasn't bad, a bit strange in places.