It’s the time of year when our tax preparers tell us how much we
owe the government. Here’s what might be a revelation to any
high-income liberal who thinks his or her tax rate is too low —
the amount of taxes your CPA tells you that you owe is a
minimum not a maximum.
Warren Buffett is President Obama’s favorite tax policy
spokesman. It’s not, however, because of Mr. Buffet’s actions. It’s
only because of his words. Like a broken record, the President has
used Buffett’s words time and again as his primary argument for
raising taxes on “millionaires and billionaires” and on “the most
fortunate among us.” Obama claims, “That’s not class warfare,
that’s just common sense.” In a recent fund raising letter the
President asked, “Do you think it is fair that Warren Buffett’s
secretary pays a higher tax rate than Warren Buffett? I don’t and
neither does Mr. Buffett.”
In an interview with Christiane Amanpour Buffett said, “I
think people at the high end, people like myself, should be paying
a lot more in taxes. We have it better than we’ve ever had it.” In
testimony before Congress Mr. Buffett said, “The rich are coddled
by Congress as if they were spotted owls or some other endangered
species.”
Buffett’s specific indictment of the tax system is that
he, a billionaire with an annual income in the millions, pays a
lower tax rate (about 17 percent) than the 20 people in his office
who pay, according to Buffett, an average rate of 36 percent. (The
36 percent number makes me wonder about his
credibility.)
Buffett apparently has not the slightest clue as to how
much of a phony he’s proving himself to be and the chasm between
his words and deeds. In regard to Buffett’s famous protestations,
New Jersey governor Chris Christie recently made the following
recommendation:
He should just write a check and just shut up. Really. And just
contribute. I’m tired of hearing about it. If he wants to give the
government more money, he’s got the ability to write a check. Go
ahead and write it.
Governor Christie, of course, has it exactly
right.
President Obama claims that he is not against wealth, per
se. He says, however, “After some point, you’ve got enough.”
Presumably he thinks Buffett is well beyond that point.
Consequently, if Buffett paid two or three times the tax he’s now
paying, it would be with money he doesn’t really “need.” If Obama’s
right, Buffett wouldn’t feel a thing.
If you think you’re not paying sufficient taxes, there’s
something you can easily do about it. This is a problem that
readily lends itself to individual direct action. Beyond the legal
minimum we’re free to determine our own tax brackets. If anyone
actually believed that the government’s having more money would
benefit society then he might happily pay more taxes.
Have you ever heard of anyone who protests that his tax
rate is too low volunteering to pay more? Why not? Is there any
clearer example of hypocrisy?
Actions speak louder than words. Judging from their
actions, liberals have the same opinion as everyone else —
government is the least effective way to get anything done. Even
liberals recognize that they as individuals can spend or invest
their own money or contribute it to private charities with vastly
better results than sending it to Washington, D.C. Have you ever
read an obituary that ended with, “In lieu of flowers, please send
a contribution to the federal government?”
One easy way to raise your own taxes is by opting out of
some of your deductions. How often does that happen?
It would be interesting to know what Warren Buffet would
say to the question of why he doesn’t just voluntarily pay more
taxes?
Mr. Buffett, why do you want other people to be
forced to do something you are unwilling to do
voluntarily? Talk is cheap. Put your money where your
mouth is. Buffett is apparently unaware that he is making it
crystal clear he is a complete phony. If he voluntarily paid more
taxes he could quickly go from being a phony to being an
inspiration. Show some leadership. Go from having no credibility to
having tons of it. Why is it necessary to wait until your fellow
millionaires and billionaires are forced to join you?
Buffet could argue that one taxpayer can’t make that much
difference. Whether or not that’s true, however, isn’t contingent
on what other taxpayers are doing. As Milton Friedman wrote in
Free to Choose, “This contention that compulsion would
change matters is wrong — even if everyone else did the same, his
specific contribution… would still be a drop in the ocean. His
individual contribution would still be just as large if he were the
only contributor as if he were one of many.”
Of course, for liberals compulsion is a good thing. It’s
been said that a liberal doesn’t care what you do so long as it’s
compulsory.
In some instances liberals do believe in the effectiveness
of individual, voluntary action. I’ve had conversations with Prius
owners who admit that whether or not they drive a hybrid will make
not the slightest difference in regard to climate change. They will
say things such as, “Well, we can’t just do nothing,” or, “We have
to start somewhere.” They say it’s important to set an example. Of
course, the Prius’s distinctive shape assures that everyone will
recognize that they’re setting an example and helps spread the
guilt contagion.
Conservatives have no reason to feel conflicted about
paying the absolute minimum tax required. Conservatives think
almost everyone’s taxes are too high including millionaires’ and
billionaires’. There’s no conflict between their policy views and
their personal behavior. They have no reason to feel guilty. They
think the government already gets too much of our money and does
more harm than good with what it already has. On April 15, when I
send my checks to the IRS and the California Franchise Tax Board,
you can bet I will be sending the legal minimums. And my conscience
will be clear.
