The Economy, Stupid
What does it say about President Bush’s Tax Plan when one of the nation’s wealthiest people says it is bunk?
Basically, Warren Buffett says that the dividend tax cut is nothing more than “Enron Style Accounting.” The article at money.cnn.com states the following:
Buffett posed a hypothetical situation in which Berkshire Hathaway, which does not currently pay a dividend, paid $1 billion in dividends next year.
Through his 31 percent ownership of the company, Buffett said he would receive an additional $310 million in income that would reduce his tax rate from about 30 percent to 3 percent, while his office secretary would still have a tax rate of about 30 percent.
“The 3 percent overall federal tax rate I would pay — if a Berkshire dividend were to be tax free — seems a bit light,” Buffett wrote.
…He closed the piece by saying that the “government can’t deliver a free lunch to the country as a whole. It can, however, determine who pays for lunch. And last week the Senate handed the bill to the wrong party.”
Makes you wonder who our fearless leaders are really thinking about.