Go Back   I-Mockery Forum > I-Mockery Discussion Forums > Philosophy, Politics, and News
FAQ Members List Calendar Search Today's Posts Mark Forums Read

Reply
 
Thread Tools Display Modes
  #1  
AChimp AChimp is offline
Resident Chimp
AChimp's Avatar
Join Date: Nov 2000
Location: The Jungles of Borneo
AChimp is probably a real personAChimp is probably a real person
Old May 20th, 2003, 12:12 PM        Warren Buffet talks dividend voodoo
EDIT: I forgot to post the article link.
http://www.washingtonpost.com/wp-dyn...l?nav=hptoc_eo


Dividend Voodoo

By Warren Buffett
Tuesday, May 20, 2003; Page A19


The annual Forbes 400 lists prove that -- with occasional blips -- the rich do indeed get richer. Nonetheless, the Senate voted last week to supply major aid to the rich in their pursuit of even greater wealth.

The Senate decided that the dividends an individual receives should be 50 percent free of tax in 2003, 100 percent tax-free in 2004 through 2006 and then again fully taxable in 2007. The mental flexibility the Senate demonstrated in crafting these zigzags is breathtaking. What it has put in motion, though, is clear: If enacted, these changes would further tilt the tax scales toward the rich.

Let me, as a member of that non-endangered species, give you an example of how the scales are currently balanced. The taxes I pay to the federal government, including the payroll tax that is paid for me by my employer, Berkshire Hathaway, are roughly the same proportion of my income -- about 30 percent -- as that paid by the receptionist in our office. My case is not atypical -- my earnings, like those of many rich people, are a mix of capital gains and ordinary income -- nor is it affected by tax shelters (I've never used any). As it works out, I pay a somewhat higher rate for my combination of salary, investment and capital gain income than our receptionist does. But she pays a far higher portion of her income in payroll taxes than I do.

She's not complaining: Both of us know we were lucky to be born in America. But I was luckier in that I came wired at birth with a talent for capital allocation -- a valuable ability to have had in this country during the past half-century. Credit America for most of this value, not me. If the receptionist and I had both been born in, say, Bangladesh, the story would have been far different. There, the market value of our respective talents would not have varied greatly.

Now the Senate says that dividends should be tax-free to recipients. Suppose this measure goes through and the directors of Berkshire Hathaway (which does not now pay a dividend) therefore decide to pay $1 billion in dividends next year. Owning 31 percent of Berkshire, I would receive $310 million in additional income, owe not another dime in federal tax, and see my tax rate plunge to 3 percent.

And our receptionist? She'd still be paying about 30 percent, which means she would be contributing about 10 times the proportion of her income that I would to such government pursuits as fighting terrorism, waging wars and supporting the elderly. Let me repeat the point: Her overall federal tax rate would be 10 times what my rate would be.

When I was young, President Kennedy asked Americans to "pay any price, bear any burden" for our country. Against that challenge, the 3 percent overall federal tax rate I would pay -- if a Berkshire dividend were to be tax-free -- seems a bit light.

Administration officials say that the $310 million suddenly added to my wallet would stimulate the economy because I would invest it and thereby create jobs. But they conveniently forget that if Berkshire kept the money, it would invest that same amount, creating jobs as well.

The Senate's plan invites corporations -- indeed, virtually commands them -- to contort their behavior in a major way. Were the plan to be enacted, shareholders would logically respond by asking the corporations they own to pay no more dividends in 2003, when they would be partially taxed, but instead to pay the skipped amounts in 2004, when they'd be tax-free. Similarly, in 2006, the last year of the plan, companies should pay double their normal dividend and then avoid dividends altogether in 2007.

Overall, it's hard to conceive of anything sillier than the schedule the Senate has laid out. Indeed, the first President Bush had a name for such activities: "voodoo economics." The manipulation of enactment and sunset dates of tax changes is Enron-style accounting, and a Congress that has recently demanded honest corporate numbers should now look hard at its own practices.

Proponents of cutting tax rates on dividends argue that the move will stimulate the economy. A large amount of stimulus, of course, should already be on the way from the huge and growing deficit the government is now running. I have no strong views on whether more action on this front is warranted. But if it is, don't cut the taxes of people with huge portfolios of stocks held directly. (Small investors owning stock held through 401(k)s are already tax-favored.) Instead, give reductions to those who both need and will spend the money gained. Enact a Social Security tax "holiday" or give a flat-sum rebate to people with low incomes. Putting $1,000 in the pockets of 310,000 families with urgent needs is going to provide far more stimulus to the economy than putting the same $310 million in my pockets.

When you listen to tax-cut rhetoric, remember that giving one class of taxpayer a "break" requires -- now or down the line -- that an equivalent burden be imposed on other parties. In other words, if I get a break, someone else pays. 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.

Supporters of making dividends tax-free like to paint critics as promoters of class warfare. The fact is, however, that their proposal promotes class welfare. For my class.

The writer is chief executive officer of Berkshire Hathaway Inc., a diversified holding company, and a director of The Washington Post Co., which has an investment in Berkshire Hathaway.
Reply With Quote
  #2  
mburbank mburbank is offline
The Moxie Nerve Food Tonic
mburbank's Avatar
Join Date: Mar 2001
Location: right behind you
mburbank has disabled reputation
Old May 20th, 2003, 12:29 PM       
Gee, Chimp, none of that makes any sense to me at all. Do you suppose a smart person could craft me a metaphor about bunch of people going out to dinner and splitting up the tab?
Reply With Quote
  #3  
sspadowsky sspadowsky is offline
Will chop you good.
sspadowsky's Avatar
Join Date: Jun 2000
Location: Thrill World
sspadowsky is probably a spambot
Old May 20th, 2003, 12:31 PM       
Wow. When a rich white guy says the tax cut most benefits the wealthy, that's really saying something.
________
ARIZONA MEDICAL MARIJUANA DISPENSARIES

Last edited by sspadowsky : Apr 18th, 2011 at 07:05 AM.
Reply With Quote
  #4  
KevinTheOmnivore KevinTheOmnivore is offline
Mocker
KevinTheOmnivore's Avatar
Join Date: Feb 2003
Location: Brooklyn, NY
KevinTheOmnivore is probably a spambot
Old May 20th, 2003, 01:33 PM       
http://www.i-mockery.net/viewtopic.php?t=3513

Reply With Quote
  #5  
VinceZeb VinceZeb is offline
Senior Member
 
Join Date: Mar 2003
VinceZeb is probably a spambot
Old May 20th, 2003, 01:42 PM       
Who pays the most when it comes to taxes? "Rich" people.
Who gets the most back when taxes are cut? "Rich" people.

You can't get much plainer than dat.
Reply With Quote
  #6  
KevinTheOmnivore KevinTheOmnivore is offline
Mocker
KevinTheOmnivore's Avatar
Join Date: Feb 2003
Location: Brooklyn, NY
KevinTheOmnivore is probably a spambot
Old May 20th, 2003, 01:47 PM       
That isn't the complete issue when it comes to dividends, Vince.

You should read the article I have linked above.
Reply With Quote
  #7  
Protoclown Protoclown is offline
The Goddamned Batman
Protoclown's Avatar
Join Date: Oct 2000
Location: Richmond, VA
Protoclown is probably a spambot
Old May 20th, 2003, 02:10 PM       
I LIKE MINE WITH LETTUCE AND TOMATO
HEINZ 57, FRENCH FRIED POTATO

CHEESEBURGER IN PARADISE
HEAVEN ON EARTH WITH AN ONION SLICE















i hate jimmy buffet
__________________
"It's like I'm livin' in a stinkin' poop rainbow." - Cordelia Burbank
Reply With Quote
  #8  
mburbank mburbank is offline
The Moxie Nerve Food Tonic
mburbank's Avatar
Join Date: Mar 2001
Location: right behind you
mburbank has disabled reputation
Old May 20th, 2003, 02:23 PM       
I was once on a cable talk show with Jimmy Buffets Harmonica player. I can't recall his name, but he went by 'fingers'. Later we all went to Buffets club. Buffet himself did not show, but I got to see "The Black Elvis" for free, so it was okay.

That is not to be taken as an endorsement of Mr. Buffets music, or his carefree alchoholoic lifestyle.
Reply With Quote
  #9  
Zebra 3 Zebra 3 is offline
Striped Tomato
Zebra 3's Avatar
Join Date: Feb 2003
Location: Bay City
Zebra 3 is probably a spambot
Old May 20th, 2003, 02:41 PM        Tax-free Dividends
- For those that aren't familiar with the NYSE and NASDAQ, Warren Buffet is a well knowed, and respected financial guru.

:/ - Canadian and U.S. brokerage houses have been throwing around (bitching) the tax-free dividend scheme-scam for sometime, and especially after the NASDAQ's 1999 hightech bubble.

- One of the reason is for older stocks like GE or McOutHouse that have little to no growth left in them to compete for investment dollars against the hightech sweethearts like Microsoft, EMC, and Nortel.
__________________
'Huuutch!' - Starsky
Reply With Quote
  #10  
sspadowsky sspadowsky is offline
Will chop you good.
sspadowsky's Avatar
Join Date: Jun 2000
Location: Thrill World
sspadowsky is probably a spambot
Old May 20th, 2003, 02:50 PM       
I work for a Buffett-owned company, that's why the article particularly interested me.

At any rate, it's refreshing to see a rich white guy essentially say, "You know, I really don't have to have more money than I already do."
________
Gay muscle

Last edited by sspadowsky : Apr 18th, 2011 at 07:05 AM.
Reply With Quote
  #11  
mburbank mburbank is offline
The Moxie Nerve Food Tonic
mburbank's Avatar
Join Date: Mar 2001
Location: right behind you
mburbank has disabled reputation
Old May 20th, 2003, 03:16 PM       
Sure, but what does any of that mean in terms of a dinner tab?
Reply With Quote
  #12  
AChimp AChimp is offline
Resident Chimp
AChimp's Avatar
Join Date: Nov 2000
Location: The Jungles of Borneo
AChimp is probably a real personAChimp is probably a real person
Old May 20th, 2003, 05:40 PM       
It means that the rich guy can now afford to buy the entire restaurant and eat for free.

I agree with you, sspad. When one of the richest people in America (I believe Buffet has $65B)--a self-made billionaire, I might add--says that the new tax cut is shite, I think he knows what he's talking about.

Of course, the government is stupid and probably won't listen. Voters will just hear the words "tax cut" and dollar signs will pop up in their eyes like in the cartoons.

Trickle-down economics are bullshit; they were attempted in the '80s and they failed then. They will fail again.

In other news, in the past 12 months, the Canadian dollar has gone up from $0.62 to just peeking over $0.74 today because of lack-lustre performance in the U.S. I think that's proof enough that Bushonomics don't work.
Reply With Quote
  #13  
mburbank mburbank is offline
The Moxie Nerve Food Tonic
mburbank's Avatar
Join Date: Mar 2001
Location: right behind you
mburbank has disabled reputation
Old May 20th, 2003, 06:11 PM       
I think identifying with the Rich is a very American trait. We think the Rich should 'get their money back' because we imagine we will be rich soon enough. We will win the lottery or our genious will be recognized, etc. etc. We think of ourselves as the proto-rich.

It's also very hard for most folks to concieve of being in favor of a policy that is not financially beneficial for them, as if wealth was a moral be all end all.
Reply With Quote
  #14  
VinceZeb VinceZeb is offline
Senior Member
 
Join Date: Mar 2003
VinceZeb is probably a spambot
Old May 21st, 2003, 12:00 AM       
Max, I know it is hard for you to see past your own nose, but realize that making a few pay for the many is wrong. No matter how you slice it, you are a socialist who wants to punish the rich. You, therefore, are an idiot who would be laughed out of the room if you socialized with anyone of your own age about these various subjects, unless the group of people your own age were left-wing professors or street performers.

You and your ilk will constantly whine about the rich. You will never try to improve your situation. You will bitch and complain until it is time to shine the shoes of people like myself. I'm sorry weality is twough. Quit your whining and deal with it. But unfortuantly you do not possess even that capability. You would have been a good fit in the heyday of the Communist control of Russia.

But you are probably right. I know all those people that come over to America just strive to be a constant bitch-machine about those who made something of themselves. They don't come to be successful or anything. The problem is you have had it too good in this country to appreciate it. If you were a woman in a physical way (your views already make you one mentally), you could be considere the quintessential "Jewish princess"; a girl that was always told she was intelligent and perfect but cannot stand when someone puts up their big paw and says "No."

Face the facts, Max. You are the leader of the Special Ed Class, the #1 student of Summer school; you are the first monkey that learned how to throw a shit ball. Your constant whining will lead you down a road to bitterness and hatred for all you don't have, and mine will lead me down a path of perhaps not certain success, but self satisfaction that I did what was right for myself and also for the betterment of those that come beyond me. It is not a Messiah complex that I have, it is common sense and upholding of the core American values which drives me. You and others like you will be nothing more than footstools for those like me; your only escape being when we decide to give you a break so you can go to the smoke lounge to talk about how smart you are with the other lackeys.

I suggest you stock up on knee and elbow pads.
Reply With Quote
  #15  
AChimp AChimp is offline
Resident Chimp
AChimp's Avatar
Join Date: Nov 2000
Location: The Jungles of Borneo
AChimp is probably a real personAChimp is probably a real person
Old May 21st, 2003, 12:17 AM       
So, uhh... what about Warren Buffet's comments, then?
Reply With Quote
  #16  
mburbank mburbank is offline
The Moxie Nerve Food Tonic
mburbank's Avatar
Join Date: Mar 2001
Location: right behind you
mburbank has disabled reputation
Old May 21st, 2003, 07:30 PM       
He doesn't understand them. If we mixed up the verb tenses, removed some neccesary words and mentioned tne length of Buffet's penis, maybe it would be Vince friendly, but maybe not even then. I'm home now and can't be bothered, but tomorrow I'll harvest that rather lengthy post for gems of cretinism.
Reply With Quote
  #17  
kellychaos kellychaos is offline
Mocker
 
Join Date: Feb 2003
Location: Where I Started But In A Different Place
kellychaos is probably a spambot
Old May 22nd, 2003, 12:06 PM       
No offense to anyone here but logic tells me that, in all likelihood, we don't have too many multi-millionaire's posting on the Mockery boards. This leads me to my next question. Is vince a lobbyist for a multimillionaire because he sure seems to be investing a lot of his argument into protecting a wage bracket of which he'll never be a part ... not to mention the fact that many those in that earnings bracket don't particularly think that the tax cut is such a swoopty deal. Although I have a basic grasp of economics and a meager stock portfolio, I'll never claim to totally understand the "ins and outs" of economics, particularly macro-economics. I'm just curious about Vince's motivation. I do find it admirable, however, that Vince comes to the aid of the rich who are so desperate for his counsel and support. What's in it for you, Vince? Is it just your mission to just be contrary and obtuse .... an internet troll, so to speak?
__________________

Wherever you go, there you are.
Reply With Quote
  #18  
mburbank mburbank is offline
The Moxie Nerve Food Tonic
mburbank's Avatar
Join Date: Mar 2001
Location: right behind you
mburbank has disabled reputation
Old May 22nd, 2003, 12:20 PM       
He believes in the Capitalist Opium of the Masses, that he will one day be rich.

He also resents the concept of taxation period, in that he thinks his money should only go to things he agrees with. He espouses a universal sales tax on non essentials, but I imagine if that magically came to pass, he would still vigourously object to that money being spent on things he did not agree with. He is lately swing a Jefferson quote as if it were a roadkill cat, to the effect that a government large enough to do everything is large enough to take everything away. He ignores the fact that our government has been 'large enough to take it away' using it's military since probably the 1940's and as he embraces the Bush doctrine of global military supperiority, it will always be 'large enough to take it away'. Far from being a true Liberatarian, Vince wants a government that does only what he wants with it's cictizens money, and in fact finds it hard to concieve of anyone who osn't 'scum' or 'a liberal college professor' wanting anything besides what he wants. I believe this inability to respect the opinions of others coupled with his rage at any compelled expenditure outside his worldview, make him a Totalitarian.
Reply With Quote
  #19  
VinceZeb VinceZeb is offline
Senior Member
 
Join Date: Mar 2003
VinceZeb is probably a spambot
Old May 22nd, 2003, 01:22 PM       
Max,

First off, I never said I was a full libertarian. Second off, you are the last person to say what a libertarian believes/does not believe. I know one thing I am not, which is a socialist fool such as you.

You know what is considered rich in this freaking country? About 70,000 dollars. That is what our country considers to be "rich". Do you think that is rich, people? Probably not. I don't fight just for multimillionaires. I fight for everyone who is overburden with the task of taking care of people that refuse to do anything for themselves. They didn't ask to take care of them, why should they?

There is a BIG difference between the mentally and physically handicapped that CANNOT do one single thing that is productive and people who can that flat-out refuse to. The govt is an inefficient machine. The govt should not bend to only my whim, but the govt should not screw over the people who make the country go. That is WRONG. It is IMMORAL.

I want my country to be safe. Iraq has been a threat and would continue to be. Any other country that is a threat gets the same shit done to them. I'm sorry that I'm not a big liberal idiot like you Max that thinks we can all hold hands and sing songs to solve our problem. People like me will go out and do the violence to protect the elitist assholes like yourself.

Can't you just face the fact that the only reason you have a shred of credibility in our entire argument is because you are on this fucking message board? Any other place that is straight down the line I would make you my punching bag. You are a fucking tool, Max. I could debate you ANYWHERE that is impartial to either side and make you look like a pompous ass, which in all honesty wouldn't take much effort. That is why you don't like me. I interfere with this big comfort zone you have here. Here, you are vast and wise and oh so intelligent. Everywhere else you are an old fart who thinks like a 20 year old girl who read Zinn and thinks she is the most politically advanced mind in the world.

You can give me hell here but you can't prove me wrong. And you hate that. Here I am the minority that can hold his own. Everywhere else max... well.....


[center:42a76f8614]You. Are. My. Bitch.[/center:42a76f8614]
Reply With Quote
  #20  
Bennett Bennett is offline
Senior Member
 
Join Date: Feb 2003
Location: one shot, right between the eyes, just for old times sake
Bennett is probably a spambot
Old May 22nd, 2003, 01:34 PM       
new creases in the Vincevolution...
Reply With Quote
  #21  
mburbank mburbank is offline
The Moxie Nerve Food Tonic
mburbank's Avatar
Join Date: Mar 2001
Location: right behind you
mburbank has disabled reputation
Old May 22nd, 2003, 01:40 PM       
I don't hate you at all, Vinth. Quite the contrary.

"People like me will go out and do the violence to"

People LIKE you, but not you, right? People like you in every way excpet for a 'condition of hives'. Simple as that. Are you talking about your top secret, ultra private weapons incident again? Where you defended your family with a weapon, family being defined by you as 'anybody'?

Are you challenging me, Vinth? Where did you have in mind? In what Arena are you offering to 'make me your bitch'? Might it be one where the regulars can think of debate without immediately employing sexual dominance as a metaphor? Or is that what you meant by 'straight' down the line? Pick place, Nancy, and I'll think about it. Unless that's as scary as being asked to post your submarine letter after you offered to do it. Simple as that.
Reply With Quote
  #22  
VinceZeb VinceZeb is offline
Senior Member
 
Join Date: Mar 2003
VinceZeb is probably a spambot
Old May 22nd, 2003, 01:41 PM       
Bennett, are you going to give anything intelligent to the conversation or just say something idiotic?

*geek laugh* BWAHAHAHAH BWAHAHAHAH BWAHAHHAHA!!!! I'm so funny! Vincevolution! Man I'm so clever! I hope the people on the anime boards will think this is funny! BWAAAHAHAHAHAHA!


I must remind you of the people that beat you up at school, Bennett. Except I am more intelligent than you as well as physically stronger.
Reply With Quote
  #23  
VinceZeb VinceZeb is offline
Senior Member
 
Join Date: Mar 2003
VinceZeb is probably a spambot
Old May 22nd, 2003, 01:44 PM       
I'll allow you to pick it. Anyplace I would pick you would label as biased. So you pick it and the rules as well. I am that confident that your ideas are that idiotic.
Reply With Quote
  #24  
mburbank mburbank is offline
The Moxie Nerve Food Tonic
mburbank's Avatar
Join Date: Mar 2001
Location: right behind you
mburbank has disabled reputation
Old May 22nd, 2003, 01:46 PM       
Alright, Vinth. I'm not the message board net geek you are, so it's not something I know all that much about. But I'll look into it.

I could suggest Brawlhall. They hate me there. It might give you a leg up.
Reply With Quote
  #25  
VinceZeb VinceZeb is offline
Senior Member
 
Join Date: Mar 2003
VinceZeb is probably a spambot
Old May 22nd, 2003, 01:53 PM       
I don't want a place where they hate you. I want a place where it is neutral.
Reply With Quote
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

   


All times are GMT -4. The time now is 01:53 AM.


© 2008 I-Mockery.com
Powered by: vBulletin
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.