Obama all about ‘divide and conquer’

by Werner Patels on January 25, 2012

in Politics

Remember when everyone was trying to keep up with the Joneses? Nowadays, it’s not about pulling even with them, but torturing, clobbering, pounding and eventually killing them. That’s the kind of hostile environment that only left-wingers can create (given their congenital penchant for violence), and Barack Obama seems determined to make this mindset the main plank in his platform.

It’s the US of E, the United States of Envy, as one astute columnist called it. In Obama’s America, it’s no longer about freedom and the pursuit of happiness. No, the new mission statement calls for targeting and then taking out those who for some reason managed to be more successful than you.

This manner of thinking is also what created and drove the Occupy movement, a bunch of bums whose brains have turned to mush due to regular consumption of drugs and/or alcohol and who, accordingly, think that society owes them.

The “one percenters”, who in Occupy parlance make all the moolah and leave next to nothing for the other 99 percent, have had a bull’s eye painted on their foreheads, and even the US president now thinks it’s OK to be gunning for them (even though he’s a one percenter himself).

But none of that is actually true, because the one percenters do contribute their fair share, paying something like 60% of all taxes, whereas half the American population pays little or no tax at all. Let’s not forget either that it’s the one percenters who create jobs. Without them, there would be very little economic activity in the US.

Warren Buffett, a veritable buffoon (proved by the fact that he’s best friends with another buffoon, Bill Gates), doesn’t understand how the world works, including the financial one, which is odd, as this is his métier after all. We all remember how he complained last year that his secretary was taxed at a higher rate than he was. Duh, one is tempted to say, because she pays taxes on earned income, whereas Buffett is taxed on his investments. That such a celebrated “financial genius” should make such a fundamental mistake of comparing apples and oranges is surprising, but at least now everyone knows that he really is a buffoon who doesn’t know anything and therefore tends to speak through his derriere.

Obama, primed and ready to start another class warfare, invited Buffett’s secretary to his State of the Union address, showing her off like some weird specimen at a freak show in the olden days. Too bad they didn’t paint a beard on her for added effect.

“Now, you can call this class warfare all you want. But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense,”

proclaimed the Prez in his speech. He, too, succumbed to the fallacy started by Buffett, but added his own inaccuracy to the mix. In dollar amounts, Buffett actually paid a lot more in taxes than his secretary, so he did “pay at least as much as his secretary”, which is precisely what Obama – literally – called for.

Of course, the difference between taxes on income and taxes on investments went straight over the president’s head.

Now, Obama is free to change the tax code so as to equalize those two types of taxes, thus subjecting those who live off their investments to the same tax rate as personal income taxpayers. That doesn’t require a call to arms, as he did, but merely a change to existing laws. He can attempt to push through a bill like that and keep his fingers crossed that Republicans, and many Democrats, won’t defeat it.

Finally, allow me to digress a bit. The “1%” nonsense started by the Occupy movement needs to be put in perspective. Thanks to a left-wing reader of this publication, I can now reveal, yet again, the hypocrisy and sheer stupidity that drives everyone on the (far) left.

The “1% argument” goes something like this: those rich folks roll in money, and we need to force them to hand over more of their hard-earned money to those who don’t want to work hard, don’t go to school and educate themselves, and who generally don’t believe in personal responsibility. To even out the differences between the one percenters and the 99 percent, we have to take from the former and give generously to the latter.

This has been countered by those in the common sense camp who say that it wouldn’t be right to force the one percenters to give up everything, or at least most of what they worked hard to achieve. To which lefties retort that, no, it’s actually the only right thing to do.

As I have said before, the only true one percenters are the unions, especially the public sector unions. They pad their bank accounts, work next to zero hours, never so much as break a nail on the job, and then retire early (some in their forties and fifties) with a defined-benefit, and platinum-plated, pension plan – all things that none of us outside the unions has or can afford, and paid for by the “99%” – you and me, the ordinary taxpayers.

In reply to my “the unions are the one percenters” line of reasoning, said left-wing reader wrote:

So you want to crush their dream of secure employment and a comfortable retirement so that nobody has that.

First of all, I’m not about crushing anyone’s dream, but those fat cats need to live like the rest of us, that is, pay for their own (defined-contribution) pension plans, instead of robbing the rest of us blind and causing major deficits at all levels of government. As a result, we’d all be better off, as we wouldn’t have to pay through the nose to pay off the debt created by public sector unions.

Second, it’s funny how the left rejects the same arguments that it usually wields when attacking the “rich”. To the left, it is thus perfectly alright to crush the dreams of those who work hard and are lucky enough to end up as millionaires or even billionaires, but the union hogs can do as they please, and woe to anyone who attempts to bring them down to reality.

According to my much-appreciated reader, it’s best if we leave the union piggies and their perks alone, so that at least they have a comfortable life and retirement. Why, then, can the left not apply the same reasoning and leave the “rich” alone based on that premise, that is, that it’s better that at least some are fortunate enough to roll in money than taking measures to ensure that “nobody has that”?

The answer to that question is simple and straightforward: because they’re silly hypocrites who can’t, or won’t, think straight and logically.

  • Robert Andrew

    It’s nice to be appreciated.

    Perhaps you could explain why you think income earned on investment should be taxes at a lower rate.

    I believe the accepted reason is to encourage people to invest money instead of I don’t know what. The problem is so much investment today is in things that don’t create any real value like derivatives, future markets and other financial manipulation that causes recessions rather then investing in new products and ideas that make the world a better place.

    The other problem is the huge number of free riders. I don’t think lower taxes on investment effects very many people’s decisions on what to do with their money. People with low income simply can’t invest. People with middle income try to invest what they can for their retirement and people with very high income have so much money they buy what they want and invest the rest.

    There is a huge difference between wanting a comfortable life that a union can provide and the wealth of the CEOs. Many of them earn more then they could spend, yet they are getting more. They can’t be doing it to make their lives more comfortable. They are doing it out of greed, pride and the desire for power. 

  • Robert Andrew

    “Let’s not forget either that it’s the one percenters who create jobs. Without them, there would be very little economic activity in the US.”

    Actually consumers who want (and have the money) to buy something create jobs. The one percenters are enablers at best, or parasites at worst.

  • Dave Hodson

    Robert, I’ll give you one good reason why some types of income should be taxed differently.  The rules may vary around the world, but in Canada, corporations pay dividends to their shareholders out of income that has already been taxed corporately.  If you own a corporation, and took income out of the business in the form of a dividend, you would end up paying double taxes if you paid taxes on that income at the same rate as other income like employment income.  It’s not like shareholders are somehow getting away with a lower tax rate–the business they own has already paid chunk of tax on the income before they ever get their cut!
     
    Oh wait a minute, idiots of the left probably think people who invest in businesses should pay double!

    And your argument that CEOs shouldn’t earn what they do, simply becuase you don’t believe they can spend that much is just plain communist crap.  People are entitled to keep the money they earn–what they need is irrelevant.  If run a business and get paid millions, or even if I win millions in the lottery, that’s my bloody money and nobody elses, regardless of whether it’s more than I really need.

    • http://www.wernerpatels.com/ Werner Patels

      Well said, Dave, well said!

    • Robert Andrew

      In Canada corporate taxes have been cut dramatically over the last few years, which by your logic, means there have been dramatic cuts to the taxes that that 1% pay. Also many types of capital gains aren’t first subject to corporate taxes, like stock options, profits from tax havens and gains from speculation.

      “People are entitled to keep the money they earn”

      The questions is did CEOs earn it? CEO pay has increased ten times over the past 30 years. but most people’s have barely increased at all (adjusted for inflation). Have CEOs gotten ten times better over that period? I still hear about businesses going bankrupt all the time, often for obvious mistakes. Over the past 30 years there has been significant increases in technology and worker education, yet the 1% has reaped almost all the benefits. I think it is more likely they have used their power in influence to undermine the market for CEOs.

      Capitalism is a creation of humans to serve human interests. If it no longer doing that we shouldn’t hesitate to change it.

    • http://www.wernerpatels.com/ Werner Patels

      Wrong. Capitalism works; what doesn’t work is government’s interference with it.

    • Robert Andrew

      Do you have any empirical evidence to support your claim?

      It seems to me the United States has the most unfettered capitalism among developed counties, yet it has the biggest problems, while other countries like France and the Nordic countries interfere more and have better results.

    • http://www.wernerpatels.com/ Werner Patels

      No, the US system wasn’t unfettered at all. For example, the free market economy had government will imposed to push cheap mortgages so as to allow more Americans to become home owners, including those who never should own any property.
      France is a disaster, as its recent downgrading and economic/fiscal problems clearly demonstrate. If you cite that rubbish country as a positive example, then you really don’t know what you’re talking about.

    • Robert Andrew

      The crash was caused by the bank repackaging high-risk mortgages as low-risk. During the peak the bank weren’t forced to give people mortgages. They desperately wanted people to have them so they would have more to repackage.

      Of course the real problem was all the derivatives built around the mortgages.

      As for France it has a lower debt to GDP ratio then the United States. In fact it is even slightly lower then Canada’s.

    • Dave Hodson

      Robert, Robert, Robert.  Perhaps you should just stop talking now, because you just make yourself look stupid, preaching about things you clearly have no knowledge about.  I don’t know where you got your business and economics degrees, or your tax training, but it clearly wasn’t from a qualified school like the ones I attended.  Coming out of your mothers basement to try to argue tax regulations with me would be like bringing the proverbial knife to a gunfight.

      So cuts to corporate taxes mean dramatic cust to the taxes that the 1% pay?  Really?  Do you want to know who owns Canada’s corporations and benefits from reductions in those taxes?  Every person in Canada with a pension plan, and RRSP, or a few investments.  Hell, the CPP even benefits from corporate tax reductions as its investments are invested in equity markets.  I think corporate tax cuts actually benefit the 100%!  Besides, corporations don’t really pay taxes in the end; it’s their shareholders that do.  If you cut corporate taxes, then the corporation passes on more income to their owners, who in turn have a higher personal income and therefore pay more personal taxes.

      As to CEOs earning their pay, well, since the shareholders of the corporations they each work for have authorized their compensation, then, yes, they did earn the money.  In any business transaction, the only test that matters about whether or not an amount of money paid from one entity to another is fair, is if the payor and the payee in the transaction are agreeable to the terms.  Your opinion from the sidelines is not the least bit relevant.

    • Robert Andrew

      “Every person in Canada with a pension plan, and RRSP, or a few investments.”

      That is far from everybody in Canada. Probably almost half of the people in Canada don’t have any of those. Nevertheless, the 1% own a highly disproportionate amount of shares in companies and would gain much of the benefit of corporate tax cuts. If you want to help all Canadian that are far more efficient ways to do it.

      “If you cut corporate taxes, then the corporation passes on more income to their owners, who in turn have a higher personal income and therefore pay more personal taxes.”

      Not if it is passed to the owner as a capital gain, where the personal income tax rate is much lower, which brings us back to my original point.

      As for CEO pay, do you believe the market is always right and can’t be undermined? I think the evidence shows that happens very frequently.

    • Dave Hodson

      Robert, corporations don’t pay their owners in the form of a capital gain.  There are basically 2 ways to take money out of a corporation.  You ‘bonus’ out the money, much like you would a salary, in which case the money is deductible by the corporation for tax purposes, but would be taxable to the shareholder like any other regular income.  The other method is by dividend.  You don’t pay out a capital gain.

      For me to realize a capital gain on a business I own, I would need to sell the shares.  If I buy a share for $10 and sell it to you for $15, I have a $5 capital gain.  But, the corporation has given me nothing in this transaction, and I wouldn’t even own it anymore.  If you own a business, either in full or in part, the profits are not paid to you through capital gains.

      Regarding the CEO pay, what makes the pay right or wrong other than the market?  Unless it’s a business that I own, I couldn’t care less what the CEO earns.  If it is a business that I own, then I can make my opinion known by voting for a slate of board members who plan to change things.  If the vote doesn’t go my way, I can either live with it, or sell my holdings.

    • http://www.wernerpatels.com/ Werner Patels

      Dave, excellent 101 introduction for lefties LOL

    • Robert Andrew

      It is common for companies to return profits to shareholders by buying back stock in order to raise the stock price so the stockholders can collect a capital gain instead of a divided, thereby paying much lower taxes. There are other methods as well, like have to company keep the profit as cash and paying executives with stock options. Of course, these method only really work for large publicly traded companies.Market prices are supposed to be based on a rational reason, like supply and demand. After all capitalism is based on the assumption that people make rational decision or the whole thing would be subject to wild swings that would devastate the economy and throw millions of innocent people out of work.If there is no apparent reason for CEO salaries to increase so rapidly that means the market has been undermined and that places an unnecessary cost on the economy.

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