I Agree With Obama and Buffett

Nor' east Thinkin'

Why personal incomes of the wealthy should be taxed at a higher rate

Published on: November 19, 2010

Some of you probably are reading this in disbelief: Vogel actually agrees with President Obama on something!?

Politicians in our nation's capitol are pandering to the well-heeled by accepting their lame excuse of why people who make high incomes shouldn't be taxed at a higher rate. Their claim – that these high incomes create jobs – is as lame as the current session of Congress.

Think about it. Most businessmen, farmers included, separate personal income from business income. If they make a profit, there are many ways to stash cash away and protect personal income. Some are more legit than others. And if a business is making enough income, it's still encouraged to grow and employ more workers.

Personal and business incomes are different critters

Even billionaire Warren Buffett agrees with President Obama that the wealthy should be taxed at higher rates. In fact, he says he's taxed at a lower rate than those who work for him.

Take Social Security as one example; The maximum employee tax for 2010 is $6,621.60, no matter how much income. For the self-employed, that maximum amount is $13,243.20. At 12.4%, the tax tops out at an annual salary of $106,800.

In other words, the higher the personal income, the greater the no-tax advantage. Yes, that's what makes American the land of opportunity. But it's also why the rich get richer and the middle class grows poorer! And when the rich take social security payments they don't need, they're effectively taking it away from those who'll need it.

You're right in arguing that Social Security was never meant to be a sole retirement income. However, the rising cost of government has had a big hand in making it so.

Finally, there's a moral principle at stake upon which our country was founded. As the Bible puts it in Luke 12:48: "To whom much is given, of him much will be required."

That's why we should be with President Obama and Warren Buffett on this one. If you agree, pass this column along to your members of Congress.

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