Senile of Omaha

He was once known as 'The Oracle of Omaha'. His reputation as the best stock picker is still very much intact and almost legendary. And yet I am not sure if the rest of his thinking is still as sharp as it used to be. Has senility kicked in?

He claims his 'class' is not taxed enough. I do not quite think there is a cohesive 'class' that can be identified. He and a few other mega rich are very philanthropic. So, by his own admission, he would rather give to private charity than to public spending. If he ever wanted, he had every opportunity to write a check to pay down the debt. And yet he has not chosen to do so - that would have been quite a drummed up event, if he did.

He didn't object to low taxes when he was building out his Berkshire empire. Now that his empire is high flying, he is proposing this taxation. Doesn't it look like he does not want others to catch up to his empire? It seems obvious to me.

There are really only a handful of people in his league. So, when he is proposing this taxation, he is obviously proposing it for a whole lot of people that make a lot less than him. Taxation that he is proposing is not significant to him, but everyone else it affects.

Now, on cue, the President wants to implement the 'Buffet Rule'. And by and large it is going to impact everyone - not just the mega rich. And here is why.

First of all, there aren't enough of them to generate $1.5 trillion. So, this billionaire rule is going to hit everyone who makes more than $200,000.

Next, they claim that the dividend tax rate is not high enough. We have 2 classes of dividends and it is really the 'qualified dividends' that get the lower rate. And the qualified dividends are issued primarily by stable, domestic companies - that either manufacture domestically or in the services sector state side. By increasing the tax rate, you are encouraging investors to find instruments that are either in the speculative growth sector or foreign companies. Smart move, Mr. President.

And then the capital gains tax rate. Short term capital gains is taxed as regular income - so, it gets progressively worse. Long term capital gains get the lower tax rate. These are the gains that I reap from investing in our economy to grow with an upfront investment - with my disposable income that has already been taxed to the hilt. Sounds like yet another smart move, Mr. President.

Mr. Warren Buffet has essentially turned into 'Senile of Omaha' and a mouth piece for Obama Socialism.