Billionaires and millionaires benefit from a lower capital gains tax because almost all of their income comes from capital investment in our economy. But they’re not the only ones who benefit from the lower tax. More than half of all American workers who save for their retirement years by investing in stocks, mutual funds or other assets also pay the same rate that Buffett does on their capital gains and dividend income. But Obama doesn’t seem to understand this or conveniently chooses to ignore it because it sounds fair.
Warren Buffet’s secretary, who he said paid a higher tax rate than he does, probably invests in stocks, too, and the tax rate on her capital gains and dividends is the same rate that her boss pays.
Millions of retirees today, who do not think of themselves as rich, live off the cap gains and dividends from a lifetime of savings and investment and pay 15 percent on that portion of their income.
But while Obama is ranting about “fairness” in the tax code, that isn’t the problem facing our country or that most Americans care about right now. What they’re worried sick about is a weak economy that’s barely growing at a snail’s pace and the need for good paying jobs that are in short supply.
This is the legacy of Obamanomics. He isn’t talking about about growing the economy or jobs or incentives to boost capital investment to escalate new business creation that is the wellspring of a prosperous, capitalist country.
No, he wants to distract voters from his failures on the economy by playing the class warfare card and calling for inserting some theoretical egalitarian fairness into the tax code. While this hat trick appeal to many Americans, polls suggest that it may not be enough to keep him from becoming a one term president.