I was watching an interview last week and for a moment, thought I was having a bad dream. The interview was of Whitney Tilson, and his assistant Kelli Alires with the Whitehouse in full view in the background. Tilson is a self-professed Warren Buffett fan, a bit of a Buffett side kick. The purpose of the interview was to discuss the so-called “Buffett Rule” which states that folks who make over a certain amount in income should pay a minimum tax RATE (the levels being bandied about are $1 million in income and tax of 30%). In his best (I’m sure rehearsed) fatherly tone, he explained that his tax RATE was lower than the lady standing next to him even though he made far more money (basically she was positioned as a “commoner”). He shared that in his opinion all folks who make a lot of money should pay a higher rate. He further suggested to Kelli that by people like himself paying more taxes, the government could do more for her.
I could not disagree with Mr Tilson any more vigorously. Firstly, its interesting that President Obama with his “spokes people” conveniently leave another interesting fact out of the conversation: Mr Tilson pays around 22 times more in TAX DOLLARS than his assistant. In fact, the top 1% pay about 20% of all income taxes. Further, 46% of all Americans pay no income tax. So when I listened to Mr Tilson espouse his advice with the White House firmly in view behind, I couldn’t help but wonder if a quid pro quo was in process. The tight, self-serving bond between Washington DC and Wall Street appears to be alive and well. Who knows, but one has to wonder what goes on behind closed doors.
How sad that folks like Warren Buffett (with Mr Tilson in tow behind) have forgotten the free market forces that allowed them to make the billions/millions in the first place, only to be replaced by Social-Capitalism. Social Capitalism is where you reap 100% of the profits when you make a “good” investment, but you are on the phone to washington DC to bail out or otherwise assist your bad investments. They love us because we must support the bailouts and other types of assistance as we don’t have a vote at the table. A great example is the current zero interest rate policy from the Federal Reserve bank. Anyone who is dependant on fixed income on which to live, has been placed back to the wall, to search for higher risk income vehicles. This is so the big banks can be “saved”…banks that were managed by simple self-serving greed. But that is not enough…President Obama now wants to tax at much higher rates dividend income. Another nail in the coffin of the average American who needs income to live on (mostly retired people).
Further, what happened to reducing the deficit??? Towards the end of the interview, Mr Tilson did say that we should have some spending cuts to go along with the higher tax rate…but it was kind of a “sound good” throw away comment.
I have not shared the nightmare part of the story yet! On the very next segment, new video was released from the big party that the GSA held in Las Vegas…at a price of $850,000. The videos showing government employees mocking how stupid the American tax payer is and how good it is to be government employee are absolutely sickening. All of this was conducted and led by GSA management. There was actually a prize for the “best video”. If you can stand to watch without throwing up, here is the link: http://www.huffingtonpost.com/2012/04/06/gsa-conference-video-vegas_n_1409281.html
The manager who presided over the Vegas party pleaded the 5th in front of Congress yesterday, but I did read reports that he earned a bonus last year for his “hard work”….sounds like Wall Street.
Nightmare part two: It seems once again that while Washington DC can certainly lecture the average citizen on how to lead our lives and how much money we should send them for their “investments in America”, our very own Buffett Rule organizer reported a tax rate of 21% on his income for 2011, which was over $1 million…President Obama, of course.
Mr Tilson should be ashamed of himself for supporting the Buffett Rule. How sad that our out of control government is so enthusiastically supported by the Wall Street crowd. Lets hope that reason prevails and our government spending is finally dealt with. Dont look to the Wall Street crowd to help, the money is too good under the current system.
On to more positive more positive topics…Famous Names introduced Dadi’ Oil about six weeks ago. Dadi’ is absorbing market share about as fast as it penetrates the nail and skin. We are so excited about the response and thank those who have tried and enthusiastically shared their feedback. If you have not tried it, give us a call at 877-235-1141.
Until next time….