In June, 2007,  Warren E. Buffett openly criticized our taxation system that allows the very rich to pay taxes at a lower rate than the middle class or even the poorest Americans. Buffett cited himself as an example. In 2006, Buffett paid 17.7 percent taxes on his income of over $46 million while his receptionist was taxed at about 30 percent. 

 

Paul C. Campos wrote in yesterday's Press, Atlantic City, that Bill and Melinda Gates paid only 15% taxes on his $366,577,390 stock dividends last year. Because neither he nor his wife receives a salary, they pay no Social Security tax like other workers. Even the least paid workers who work for minimum wages must pay around 15% of their income for Social Security.

 

THE GULLIBLE MASSES

Many people are in financial trouble because they believed in miracles. Millions tried to perform their own miracles with little plastic cards.  Realtors working for commissions convinced people to buy a house they couldn't afford with the promise that it would increase in value faster than they could make payments. Car salesmen, who also earn provisions, sold people cars with zero down, zero interest and zero payments for a year.

 

When the government lives beyond its means, it simply raises taxes or prints more money. Normal tax-paying citizens don't have that privilege, so where do they go for help when they have problems? To their government of course!

 

BENEVOLENT POLITICIANS

Some politicians are quite generous. New Jersey Governor Jon Corzine, whose income last year was around 11 million, donated more than $800,000 of his personal fortune to fellow Democrats and liberal charities last year. The Governor's tithe doesn't help troubled tax payers of course, but you can't accuse him of being a tightwad! 

 

I believe he and everyone else should be free to spend or give away their own money as they see fit. I have a problem, however, when benevolent politicians give away OUR money! Those gullible Americans who thought they could get something for nothing and are now faced with losing their homes are being offered a bail-out with OUR money! Because people are not in a spending mood, our politicians have come up with something they call "economic stimulus." It's just another name for OUR money!

 

People who live on Social Security have the least money, so they naturally want some of that economic stimulus. They normally wouldn't have to file a federal Income tax return but in order to get the stimulus, they have to file. And the government has to hire extra workers to process their forms.

 

It's late and I need my sleep. I hope no benevolent politician figures out how to rob me of my sleep and give it to those who can't sleep because of the mess they created.

 

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PS:

Just three big hedge fund operators earned over 9 billion Dollars last year, betting that a mortgage crisis was in the offing. The Wall Street Journal reported back in January on how John Paulson pulled that off: http://online.wsj.com/public/article/SB120036645057290423.html

Paulson's 2007 earnings were $3.7 billion (spelled with a B!). According to a Washington Post article published in the Press of Atlantic City today (April 18), George Soros (sound familiar?) also earned $2.9 billion and James Simons earned $2.8 billion.