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Well -- next -- wrote an op Ed in the Wall Street Journal this morning.
Calling our tax code quote hopelessly unfair and in need of a complete overhaul.
This is an economic historian Don Steele Gordon also says President Obama.
Buffett tax ignores what He calls five myths about millionaires were pleased to welcome into the studio now let's get right to Joseph let's talk about these five minutes the first one.
Millionaires are rich.
Well it depends out how you define millionaire B traditional -- definition was had a million dollars and in net -- -- today that does not make you rich -- even and in good times it'll throw all maybe 50000 dollars a year -- in income.
Which is a middle class income these -- the other definition of course isn't a million dollars a year in income which still makes you -- keeps the wolf pretty comfortably away from the door.
OK but still that brings us the number two a millionaire's think that they're rich a lot of people were making a million dollars you're still don't necessarily build rich.
No they don't because you know most people think of themselves as middle class because -- -- what you're earning you know people who make much less than you do -- people who won't make much Morgan you -- Bill -- on the Forbes 400 list.
And so people don't tend to and also they tend to spends.
They will both people tend to have -- something they would really like to have of only may have enough money right well you know and then of course.
The big debate in this country about -- how much.
Tax -- you know the taxes that millionaires pay.
I have a radio show comes on Saturdays ago I called in this Saturday and say -- Once you -- a million your your your taxes your tax rate goes back to 10%.
In outside -- that this information the misinformation campaign that's going on out there.
It seems to be affected people believe millionaires don't pay taxes.
Well I mean that's just obviously it's untrue or you can just go to -- look at Friedman but the figures that are put out by the united state treasury.
Com am actually -- the what the top 1% pay 70% of all income taxes.
Now having said that the president can counters that -- counters criticism of the buffer role as saying listen it's not going to impact.
Investment obviously we need investment that's one of the big things hurting this economy right now.
But we -- -- attack the job creators of people who might actually invest in the business.
What this -- role actually impact them.
I think it probably would because an awful lot of those supposedly rich people are actually the Arab.
Owners of subchapter S corporations.
So there but they're actually they're paying you know 35% or whatever.
And so it would impact -- the no -- -- create the jobs are they gonna hire somebody knew for their company or they're gonna pay.
Taxes -- I mean I would actually say that that's his -- -- 101 but that's just me your -- in the journal today I've got so many highlights and here we only have minutes thirty seconds up.
What's what's the most important thing that the person reading this piece in the journal today to take away -- short history of the income tax I the most important thing is because of the history of the income tax the corporate income tax and the personal income tax are completely separate -- like -- corporate taxes paid my martians.
Where is of course corporations are owned by people who also pay personal taxes and they've they should be integrated in one way or another.
So you're you're essentially saying when we -- a system of double taxation even more in some cases in even more amenable if for instance some.
Warren Buffett says He paid six point nine million dollars and income taxes last year.
Well -- Berkshire Hathaway were subchapter S corporation which of course it is not He would have paid one point six billion in taxes last year or 231.
Times as much.
Mean the the profits of Berkshire Hathaway and 30% of them belong to Warren Buffett.
Ultimately what would what would be fair and the word -- being tossed around a lot would to be a would -- fair tax or flat tax what would be something that really will be equitable and and be hard for people to say it's it's unfair to everyone.
I would like to see above first integrate the corporate and personal taxes in some way or not I personally don't believe a flat tax because it makes it possible for congress to sell fiddles too rich people.
Home in order to avoid time to read those loopholes does still -- one of my favorite -- keep up the great work appreciated.
While the final hour trading just minutes away Liz Claman hazard.
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