How Barack Obama's 'Buffett' Tax Hurts the Middle Class

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Are rich people REALLY this ridiculous? Even though they've got MILLIONS, perhaps even BILLIONS, just b/c we raise the rate a mere 20%, they're gonna be, "OH NO! THIS IS GONNA TAKE SO MUCH EVEN THOUGH I'LL STILL HAVE A LOT LEFT OVER, so I have to pretend it's a huge deal and invest in something that's less-taxed"?? This guy's main argument is that, "Well, because some rich folks will see their taxes go up, they'll pull out their stocks and invest in other stuff, so people with things like IRAs and 401ks will lose out"?
And with regard to it being a "revenue loser", the fact is that revenues only SLIGHTLY dropped after Reagan rose the CG tax rate in '86. They were on a continuous upward path since 1982 and probably reached their 'peak' for that time.
Of course, this is not to say that incentives and rates DON'T MATTER, but many conservatives seem to ASSUME THAT EVERY SINGLE RATE CHANGE is REALLY STRONGLY TIED TO INCENTIVES, when the truth is that some tax cuts/increases HAVE A MUCH-BIGGER EFFECT than others because of a thing called "elasticity." Look it up!
I mean, is an 8% rise in CG tax REALLY that big a f*cking deal? What's 8%?? It's miniscule! Also, it seems here that the CG tax revenues PEAKED AGAIN even higher by 2001... but then went downhill massively til even after 2004. This is DESPITE the rate being cut to 15%, too!
Stop promoting this oversimplistic, troglodytic BS about taxation. IT'S A LOT MORE COMPLICATED THAN YOU THINK!

Brandon of MO 8:38AM May 30, 2012

Excellent succinct writing and powerful logic. Enjoyed reading (and considering) every word and will share on facebook and twitter. Thank you!

M Kathy Brown of CO 11:49AM May 14, 2012

Bad writing and idiotic reasoning. The writer needs to find a new profession other than prostitution. Someone had to pay for this commercial.

Nunci0 of MO 11:40AM May 14, 2012

I am stunned by the lack of critical thinking many of the comments on this blog have made.
Fairness is a straw man thrown out for the party faithful to unite them against anyone threatening that philosophy. It has nothing to do with facts.
Fact: Federal revenues have increased an average5%/year since the mid 1990's to ~$2.5 trillion/year.
Fact: Federal spending outpaces revenues by ~$1.5 trillion/ year under Obama.
So, despite being able to collect $1.5 trillion/year more today than it did twenty years ago (a ~150% increase) while population increased only ~25% over the same period, the current Administration wants more.
Fact: Two major areas are responsible for the excessive spending:Defense spending is 20% of the budget, Human Resources (Soc.Sec., Medicare, Earned Inc Credit) is ~69%. ---Guns vs. Butter
Butter is winning- but too much butter will make you sick.
I simply do not believe that giving the Federal government more revenue is a good allocation of resources. And, judging by how rapidly they are spending money WITHOUT the revenue to support it, they don't care anyway!
The philosophy of the current administration being based on fairness is harmful because achievement, excellence and advancement is suborned by petty emotions such as envy, fear, and the greed of people who believe they are "owed" something.

Can We Talk? of GA 9:15AM May 14, 2012

It is shocking a national magazine gives this Wall Street sycophant a propaganda platform and misrepresents it as credible opinion. Many readers will assume you only did this for a fee. Prior comments cover the intellectual lies and deluded assumptions of this propogandists, who refers to no credible evidence for his advertising for the exploitive rich. This magazine is equally guilty in this corrupt and immoral practice. Your mothers should be deeply ashamed of you.
ken

Ken Finch of NY 3:36PM May 13, 2012

Would Republicans have anything to say about tax policy if they were not permitted to use the incendiary phrase "class warfare"?

Jim of NC 11:52AM May 13, 2012

The capital gains tax rate has been around since the 1920's, and for much of that time it was higher than it is today. We've had nearly a century of American history with a capital gains tax rate higher than it is now. I don't recall it leading to financial meltdown.
And it won't, either. If you have a million dollars to invest, and the capital gains tax rate is 35% instead of 15%, what are you going to do with the money? Sit on it? Put it under your mattress and let it depreciate with inflation? No, you're going to invest it somewhere, even if the government does take the larger percentage of your profits.
Furthermore, hikes in cigarette prices are a false analogy to the capital gains tax issue. The poorer a person is, the more likely they are to smoke, statistically. An extra dollar per pack of cigarettes can dissuade someone who can't afford it. An extra 25% tax on an investor's profits is not the same in any way.
And I would love it if the author had specified what it was, exactly, about the crash in the 1980's that made it in any way worse than the crash in 2008. Because it wasn't worse than the crash in 2008. In any way. The crash in 2008 was a financial catastrophe, perhaps unparalleled since Black Tuesday. Perhaps the author didn't specify why it was worse because it wasn't worse. Perhaps the author didn't specify why it was worse because it was a false example to set up a false premise.
And that premise is one we know to be false. The idea that unregulated, tax-free markets operate with perfect foresight is dead. The 2008 Recession disproved it with remarkable clarity.
The truth is that we can tax capitalism's excesses so capitalism benefits more of the population as a whole. The truth is that markets need rules by which to operate, and if you don't have them you have Russia's economy, which benefits very few. The truth is that the Republican economic ideal is what devastated the economy, and now they're trying to score political points against Obama for not fixing it fast enough.
It's really pretty pathetic.

Jordan Capobianco of FL 10:54AM May 13, 2012

This is the same argument like raising taxes on "job creators" will stunt the economy.
Retarded. You are a Wall Street sycophant.

RTW of CA 5:47AM May 13, 2012

Joshua Gilder is a dirty liar.
He uses many words to confuse and obfuscate.
But ultimately he is selling a bogus story that if believed will continue to make the rich richer and the working class poorer.
If there were a law against deception in journalism Gilder would go to prison where he belongs.
I pity the foxbot that falls for this garbage.

Will of NV 1:49AM May 13, 2012

Trading volume is down over 20% since the 2008 crash, yet the DOW is at pre-crash levels. Fewer people buying stocks is not going to affect the valuation of a company in general. Mr. Gilder should stick to writing speeches and leave this work to economists.

William of PA 8:26PM May 12, 2012