Debunking Warren Buffett and other tax myths

Contrary to Obama and Warren Buffett’s insistence, today’s taxes are not lower than they were in the 1950s. The Peter Schiff Show – Weekdays Live 10am-Noon Eastern

25 Responses to “Debunking Warren Buffett and other tax myths”

  1. DragonCitizen says:

    Buffet shows how mendacious and condescending he is with his heuristical “secretary story”. I guess when youre as rich as he is you become delusional and think you can fool people.

  2. CambridgeHeights says:

    The secretary is paid by a company, which is taxed by corporate income tax. Therefore the secretary is taxed twice too.

  3. loeghat says:

    @larsiemannen its also a urban myth that the free market exist, it dosent… Its like santa claus christmas night, dosent exist!

  4. sampraki says:

    The comments on this page are off the mark, because they are mixing balancing the governments’ budget with stimulating the economy.
    If the government tries to balance its’ budget, it may retard the economy.
    On the other hand, if the government tries to stimulate the economy, it may unbalance the budget.
    The reason the comments are off the mark is that people are trying to balance the budget and stimulate the economy at the same time.
    This may not be possible!

  5. larsiemannen says:

    @loeghat He he. Well, you said it! It’s a very long time since the free market has been allowed to work. It’s a urban myth since most men want democracy and power over your neighboor and not their own production and body. Free Market is allways the end game. The buble has to burst. It’s just life.

  6. loeghat says:

    @larsiemannen Free Market is a myth

  7. larsiemannen says:

    @sampraki That’s true. This is the logical conclusion from what he is saying. Those who don’t want to pay taxes shouldn’t pay taxes, as whoever don’t want to buy CocaCola don’t pay fort he CocaCola. Free market ftw.

  8. sampraki says:

    The logical conclusion from saying that Warren Buffet should donate, if he wants to raise taxes, is that only people who don’t want taxes should not donate.
    If people don’t want taxes, and also don’t want to donate, then since this is a democracy, then why not do away with all taxes, and resolve the argument?
    Then everyone can pay fees for the military, law enforcement, road building, postal sevices, medical care, etc, etc.

  9. afro84 says:

    That only works if your public sector is larger than your private sector. Neither of ours are, so the logic doesn’t work.

    Besides, private sector companies surely benefit from the loss of another private company, don’t they? So surely using your logic you aren’t “generating wealth” either, you are just taking from one hand and giving to another?

  10. kommisar says:

    No, it can’t, because it can only get the capital from the producers in the private sector, and thus doesn’t produce wealth. It’s a matter of stealing from one hand and giving to the other.

    Haha, the UK is in as much shit as the U.S. depending on the country. There are very few countries in Europe doing decent economically, and none include the UK. Even then, your argument is flawed because you can’t say for certain the tax increases have a causative relationship with the lowering debt.

  11. afro84 says:

    @kommisar Government can create wealth, just as any private entity can. The issue with what you mention has nothing to do with a public/private entity it is a debt/solvency issue.

    All “generates wealth” means is that you are able to take $1 and turn it into goods worth > $1. If you ran a private entity with a budgetary deficit and financed it with more and more debt, then you wouldn’t be generating much shareholder wealth, would you? It’s exactly the same for governments.

  12. afro84 says:

    @kommisar The Laffer curve may have some weight, but in my country (the UK) we have recently raised the tax rate over £150k from 40% to 50% and backed it up with clamping down on tax avoidance. All of the evidence is pointing towards this having a positive impact on reducing our deficit (although we won’t know for certain until the 10/11 tax returns are filed).

  13. kommisar says:

    @afro84 The main problem with your logic is you have fallen for the myth that is spread throughout liberal and Keynesian dogma that spending from the government creates wealth. This is completely false. What creates wealth is saving, investment and innovation from the private sector. If there were any validity to your logic, the war efforts and huge military spending in general would be making us the richest, most financially solvent nation in the world by far. It doesn’t though.

  14. kommisar says:

    @afro84 At least half your reasoning is completely bogus. Saying money is better spent on a government employee than sitting in a stock, asset or bank account is just plain ignorant. The rich often buy up government bonds for one, but really the money does not necessarily just “sit” there unused. Often a wealthy person will use it to invest in, other than the things I aforementioned, businesses. The problem has a lot to do with tax code making the country business-unfriendly.

  15. kommisar says:

    @afro84 You may have heard of the Laffer Curve, but whether or not you believe in that, the statistics cannot be dismissed. I am sure liberals such as you never bother looking at these, but here are a couple articles:

    house [dot] gov/jec/fiscal/tx-grwth/reagtxct/reagtxct [dot] htm
    american dot] com/archive/2007/november-december-magazine-contents/guess-who-really-pays-the-taxes

  16. afro84 says:

    @kommisar Then show me the “facts” instead of insults!

    People at the bottom are more likely to spend all of their money each month, so if you increase taxes on the bottom then you sap money from the economy that would otherwise be spent elsewhere. If instead you take taxes from the top then you impact the economy less, since this money will then be paid to a public sector worker and re-enter the GDP equation, whereas otherwise it would simple sit in a bank account/money market fund/stock/bond.

  17. kommisar says:

    @afro84 That’s not true at all. Buffett is full of shit like Schiff pointed out. If he truly believed his bullshit, he would write a check to the Treasury Department. More so, increased taxes results in lower tax revenue, and this is a statistical fact. Christ, did you even watch the video? You sound like a fucking moron.

  18. afro84 says:

    Increasing taxes means that less money is concentrated in fewer hands. The economy will be healthier when we realise that the majority of the rich are lying to us for a quick, easy buck.

    Warren Buffett realises this and knows that it is in his interests to pay more taxes to increase the health of the economy which in turn will increase the quality of the investments that are available to him!

    Buffett isn’t a “get rich quick” kinda guy. He is willing to wait decades for decent returns.

  19. MIT2004 says:

    @davehlgrn your statement doesnt make any sense. BH is not warren buffet? WTF does that have to do with anything? he is the largest stock holder think think think

  20. MIT2004 says:

    @TerminalRhinoVirus yes sir he has a bad ass house and bad ass cars. proof u can go from nada to prada

  21. Djambel says:

    Shocker that all these talking heads come out of the woods to defend tax cuts for the wealthy. I didn’t see this coming.

  22. Djambel says:

    yeah how dare we tax the people that can afford it! Tax the lazy people who don’t work because they just don’t feel like it. Idiots.

  23. Juliathemechanic says:

    Warren Buffet owns a large interest in Moody’s. Whenever he speaks keep in mind that he is an Obama administration mouthpiece. Do your own research and don’t listen to the talking heads – they’re lying to you.

  24. davehlgrn says:

    BH is not Warren buffet it is a private company that is it’s own person legally speaking. Warren buffet is commenting that his income is taxed less then the income of everyday earners. I think there is a difference in passive income and real earned income.

  25. davehlgrn says:

    BH is not Warren buffet it is a private company that is it’s own person legally speaking. Warren buffet is commenting that his income is taxed less then the income of everyday earners.

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