Today, as part of his alleged deficit reduction package, Barack Obama is expected to announce his desire to enact a new tax rate only for the rich, which he will call the "Buffet Rule" in honor of loudmouth billionaire Warren Buffet, who recently complained that he wasn't personally paying enough income taxes.
Unfortunately, Mr. Obama wants the tax to apply to everyone with an annual income of $1 million or more, no matter where the money came from. That last distinction is crucial, because the reason Warren Buffet pays an effectively lower tax rate than "working, middle class families" is that most of his income is from investment, and capital gains tax rates are lower than personal earning tax rates in order to encourage people to accept risk and invest in American businesses.
If the "Buffet Rule" was passed, it would effectively double the capital gains taxes on the largest investors in America...encouraging them to withdraw their money from potentially job-creating companies, thereby leaving investment decisions to the government geniuses who just blew a half-billion taxpayer dollars on Solyndra.
It's also interesting that Mr. Obama is making the distinction that this tax would fall "only" on millionaires and billionaires, suggesting that he's been aware all along that the "millionaire and billionaire" taxes he has been pushing would actually fall on the backs of those middle class earners and small business owners who cobble together a couple of hundred thousand dollars annually.
Of course, the "Buffet Rule" isn't going to go anywhere...nor was it meant to. Just like his cynical and pointless "American Jobs Act," the "Buffet Rule" is little more than another campaign tool intended to tar Republicans with being "millionaire lovers" and foment a little more class warfare.
But Hope n' Change thinks that Obama may actually be on to something with the idea of special taxes tailored ONLY to specific individuals, and we think the Republicans might actually be willing to agree to some of them. For instance:
• "The Hoffa Rule" which imposes a 60% tax rate on any union member who foments violence.
• "The Baldwin Rule" which imposes a 70% tax rate on all Hollywood liberals, with an additional 5% surtax each time they go on a talk show to say they're considering running for office.
• "The Uncle Omar/Aunt Zeituni Rule" which imposes an 80% tax rate on anyone found to be related to two or more persons who are in this country illegally and sucking up welfare.
• "The Ayres Rule" which imposes a 90% tax rate on all book royalties earned by anyone for autobiographies actually written by Bill Ayres.
• "The Soros Rule" which imposes a 100% tax rate on any Hungarian billionaires who are also complete assholes.
C'mon, Mr. Obama! Pass these bills and, if you love us, pass them right now!
Don't worry. He promises to stop after the millionaires and billionaires.