Warren Buffett is wrong because he doesn’t understand economics. Support the FairTax
The rich are always going to say that, you know, just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you. But that has not worked the last 10 years, and I hope the American public is catching on.Technically, what Mr. Buffett said may be true but only because he is looking at the wrong thing. I’m sorry that this supposed capitalist and businessman has never learned that spending money is not what creates wealth. To create wealth, one must save, invest, and produce items that had not existed before or items that do exist but of higher quality or at a lower cost.
Instead of encouraging spending, as the current and past Presidents have done, we should be encouraging investment. That means lower taxes on investments (capital gain, interest, and dividends) and, to offset that loss of revenue, either lower government spending (my preference) or higher taxes on spending. Until 1913, with a few rare exceptions (Civil War), all federal taxes were collected on spending while income, both earned and from investments, were non-taxable. During that time, the United States economy grew like nothing the world had ever seen before. Since the income tax has replaced tariffs as the primary source of government revenue, the United States has saved and invested less money and the economy has grown more slowly.
Mr. Buffett argues that we’ve tried trickle-down economics and it has failed. We have also tried trickle-up economics (in the late 1960s) and it too failed. Let’s try something that has succeeded: consumption taxes instead of income taxes.
Tags: Michael E. Newton, The Path to Tyranny, Berkshire Hathaway, Capital gain, Economic, Fair tax, FairTax, Giving Pledge, Investment, Tax, Tax cut, This Week (ABC TV series), Trickle-down economics, United States, Warren Buffett, Wealth To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
Posted by Bill Smith at 6:57 PM - Post Link
2 Comments:
In fact, Buffett has already stated that HE SUPPORTS a progressive consumption tax (but he doubts that it will happen). It is up to We, the People to share the news of the FairTax.
As a former Fairtax cult member, I can assure you of two things
1) Fairtax sounds great.
2) Fairtax fine print is bogus preposterous and deceptive nonsense.
Google Fairtax fine print to find out more. Essentially, though, Fairtax fine print has a massive and hidden tax on city and state goverments.
It's over a trillion dollars, yet they don't mention this in any of their books (except one sentence in their sixth book), they don't mention it in their videos or speeches or web sites.
The state government of California, for example, would owe 14 billion dollars.
Fairtax spokesmen (including Jim Bennett, David Kendall, and Ross Calloway, have all confirmed this massive tax on city and state governemnts.
When asked why they didn't mention this in the books, the videos, the speeches, Bennett said there was no need to, because city and states will save so much, it won't matter.
Do you really hide a trillion in taxes on city and state governments because "it won't matter"? Or do you hide it because you know it's goofy?
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