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kallend

Words from the wise

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SUPPOSE that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”

Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.

Between 1951 and 1954, when the capital gains rate was 25 percent and marginal rates on dividends reached 91 percent in extreme cases, I sold securities and did pretty well. In the years from 1956 to 1969, the top marginal rate fell modestly, but was still a lofty 70 percent — and the tax rate on capital gains inched up to 27.5 percent. I was managing funds for investors then. Never did anyone mention taxes as a reason to forgo an investment opportunity that I offered.

Under those burdensome rates, moreover, both employment and the gross domestic product (a measure of the nation’s economic output) increased at a rapid clip. The middle class and the rich alike gained ground.

So let’s forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased. The ultrarich, including me, will forever pursue investment opportunities.

And, wow, do we have plenty to invest. The Forbes 400, the wealthiest individuals in America, hit a new group record for wealth this year: $1.7 trillion. That’s more than five times the $300 billion total in 1992. In recent years, my gang has been leaving the middle class in the dust.
Warren Buffett

www.nytimes.com/2012/11/26/opinion/buffett-a-minimum-tax-for-the-wealthy.html?_r=0
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The only sure way to survive a canopy collision is not to have one.

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Google who holds our debt. You may be surprised.



"Fully two-thirds of the national debt is owed to the U.S. government, American investors and future retirees, through the Social Security Trust Fund and pension plans for civil service workers and military personnel. China, it turns out, holds less than 8 percent of the money our government has borrowed over the years"

Not surprised, I just hope those who are dependent on the government for their retirement and other entitlements have an alternate source of income.

...

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Is it Backward or Forward that was your hero's campaign slogan? Certainly looking back 50 years and saying "That's how we should be doing things" is a bit off, even for you perfesser. I'll submit that the US economic situation was vastly different than today's.
Please don't dent the planet.

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>Is it Backward or Forward that was your hero's campaign slogan? Certainly looking
>back 50 years and saying "That's how we should be doing things" is a bit off, even for
>you perfesser.

Well, your hero wanted to go back 85 years.

> I'll submit that the US economic situation was vastly different than today's.

Indeed!

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Two-thirds of millionaires left Britain to avoid 50p tax rate
Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax, figures have disclosed.



(A) The super rich with always make more money. It's what they do, and not because they are smarter or better than the rest. Members of the lucky sperm club have a lifetime membership.

(B) No matter what you do with the tax law, business and individuals will always react faster and avoid as much as possible. The ones with more money have more and better accountants. Or, if it get's bad enough in one place, they will relocated to another. Part of being rich/successful is both maximizing profit/assets and minimizing liabilities.

So go ahead, jack up the taxes on folks who make more than you. The ones with major bankrolls with either avoid the taxes or reclassify themselves as not taxable, and the only ones you hurt are the small businesses and small entrepreneurs who can't avoid, leave, or pay for more/better CPAs. Congratulations, taxing the "rich" hurts Joe Wanna-be-somebody down the street, and Warren Buffet still pays peanuts. Huzzah.
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Guard your honor, let your reputation fall where it will, and outlast the bastards.
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So go ahead, jack up the taxes on folks who make more than you. The ones with major bankrolls with either avoid the taxes or reclassify themselves as not taxable, and the only ones you hurt are the small businesses and small entrepreneurs who can't avoid, leave, or pay for more/better CPAs. Congratulations, taxing the "rich" hurts Joe Wanna-be-somebody down the street, and Warren Buffet still pays peanuts. Huzzah



But that didn't happen at tax rates in the Reagan era. If rates go back to those levels, why would the sky start falling now?

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So go ahead, jack up the taxes on folks who make more than you. The ones with major bankrolls with either avoid the taxes or reclassify themselves as not taxable, and the only ones you hurt are the small businesses and small entrepreneurs who can't avoid, leave, or pay for more/better CPAs. Congratulations, taxing the "rich" hurts Joe Wanna-be-somebody down the street, and Warren Buffet still pays peanuts. Huzzah



But that didn't happen at tax rates in the Reagan era. If rates go back to those levels, why would the sky start falling now?



Or the Eisenhower era, or the Clinton era. Times when the GDP was growing healthily, unemployment was low, and the ranks of the middle class were growing.
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Two-thirds of millionaires left Britain to avoid 50p tax rate
Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax, figures have disclosed.



(A) The super rich with always make more money. It's what they do, and not because they are smarter or better than the rest. Members of the lucky sperm club have a lifetime membership.

(B) No matter what you do with the tax law, business and individuals will always react faster and avoid as much as possible. The ones with more money have more and better accountants. Or, if it get's bad enough in one place, they will relocated to another. Part of being rich/successful is both maximizing profit/assets and minimizing liabilities.

So go ahead, jack up the taxes on folks who make more than you. The ones with major bankrolls with either avoid the taxes or reclassify themselves as not taxable, and the only ones you hurt are the small businesses and small entrepreneurs who can't avoid, leave, or pay for more/better CPAs. Congratulations, taxing the "rich" hurts Joe Wanna-be-somebody down the street, and Warren Buffet still pays peanuts. Huzzah.



True that!
Look for the shiny things of God revealed by the Holy Spirit. They only last for an instant but it is a Holy Instant. Let your soul absorb them.

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Two-thirds of millionaires left Britain to avoid 50p tax rate
Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax, figures have disclosed.



(A) The super rich with always make more money. It's what they do, and not because they are smarter or better than the rest. Members of the lucky sperm club have a lifetime membership.

(B) No matter what you do with the tax law, business and individuals will always react faster and avoid as much as possible. The ones with more money have more and better accountants. Or, if it get's bad enough in one place, they will relocated to another. Part of being rich/successful is both maximizing profit/assets and minimizing liabilities.

So go ahead, jack up the taxes on folks who make more than you. The ones with major bankrolls with either avoid the taxes or reclassify themselves as not taxable, and the only ones you hurt are the small businesses and small entrepreneurs who can't avoid, leave, or pay for more/better CPAs. Congratulations, taxing the "rich" hurts Joe Wanna-be-somebody down the street, and Warren Buffet still pays peanuts. Huzzah.



True that!



So explain carefully why billionaires weren't fleeing the country prior to the Bush tax cuts.
...

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So explain carefully why billionaires weren't fleeing the country prior to the Bush tax cuts.



All the ones I know were investing heavily in Bush's campaign funds.
Look for the shiny things of God revealed by the Holy Spirit. They only last for an instant but it is a Holy Instant. Let your soul absorb them.

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So explain carefully why billionaires weren't fleeing the country prior to the Bush tax cuts.



Because they were living nicely on the Clinton Capital Gains Tax Cuts. In 1997, Clinton signed a reduction in the capital gains tax rate to 20% from 28%.

I know, I know. Those were supposed to be "Bush Capital Gains." But it's one of the reasons why Clinton was successful as a POTUS. He flip flopped on taxes,p even admitting in 1995 that he raised taxes too much.

Then he signed a bill limiting growth in spending (which ultimately almost balanced the budget)


My wife is hotter than your wife.

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That would be false. The extremely wealthy will NOT be hurt in any meaningful way by increasing theier tax rates.

The bullshit that right wing conservatives parrot is ridiculous. The best economic times for ALL citizens have occurred under Democratic administrations. The higher taxes paid by the extremely wealthy did not hurt them at all.

Thirty years of proof that trickle down economics don't work, and the dumbfucks that are RWCs still believe the lies. This past election showed the depth of the immense stupidity of those people.
Bushco's policies CRASHED the economy. The budget issues that the RWC turds are so concerned about are due to a responsible adminstration putting the two unpaid for wars back on the books, instead of hiding them in plain sight. The RWC turds pretend that didn't hapen, and were totally unconcerned about it at the time.

It is time to break up the media oligopolies that are unified in presenting a false and distorted picture of the world to the RWC dumbasses that believe the bullshit as truth. When all you hear is a pack of lies, one might come to believe the lies. Witness the fact that RMoney didn't even have a concession speech ready to go. He fell for the same bullshit the rest of the RWCs believe.

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Is Buffett a philosopher? Are we going to hear about butterfly dreams next? I only ask because the oracle apparently believes he lives is Norquist's imagination. (afterall, if a position only exists in Grover's dreams, and Warren has espoused such positions, in what reality are we living?)

Forbes: Buffett's Billions Can't Buy Him Exemption From His Tax-Averse Past
Massive hypocrisy, flip flopping, and lack of logic pointed out, for any who care to read the entire article.
witty subliminal message
Guard your honor, let your reputation fall where it will, and outlast the bastards.
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The extremely wealthy will NOT be hurt in any meaningful way by increasing theier tax rates.



Not in any way meaningful to you.

Ask them, though.



Well, the ones so unpatriotic that would leave the country on account of a 39.6% tax rate have already left, decades ago.
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Maybe not much of a philosopher, but a very, very good investment manager - and someone with more experience than most of the country with managing lots of money for rich people.



Absolutely, but since he's given conflicting advice to different groups, which advice would you take; the ideas given to politicians during political crisis or the ideas given to investors during financial meetings?
witty subliminal message
Guard your honor, let your reputation fall where it will, and outlast the bastards.
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>Absolutely, but since he's given conflicting advice to different groups, which advice
>would you take; the ideas given to politicians during political crisis or the ideas given
>to investors during financial meetings?

Whichever is more appropriate. I give very different advice to AFF students than I give to people with 1000 jumps; the audience is different so the advice has to be.

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Absolutely, but since he's given conflicting advice to different groups, which advice would you take; the ideas given to politicians during political crisis or the ideas given to investors during financial meetings?



Whichever is more appropriate. I give very different advice to AFF students than I give to people with 1000 jumps; the audience is different so the advice has to be.



So when discussing the finances of balancing the budget, should you take his financial advice or his political advice?

ps - poor analogy; both are jumpers discussing jumps, just different competence levels. Better analogy: you've given published advice on jumps to (a) 10,000 jump instructors and (b) farmer and airport property managers. As an AFFer, which is more appropriate to consider during exit?
witty subliminal message
Guard your honor, let your reputation fall where it will, and outlast the bastards.
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>So when discussing the finances of balancing the budget, should you take his
>financial advice or his political advice?

I guess that would depend if I was an investor he was advising or a politician he was advising.

>ps - poor analogy; both are jumpers discussing jumps, just different competence levels.

Right. And you might give them VERY different advice. For example, you would never tell an AFF student to hold off on pulling until he was sure his airspace was clear - but you might well tell someone on a bigway to do that.

>Better analogy: you've given published advice on jumps to (a) 10,000 jump instructors
>and (b) farmer and airport property managers. As an AFFer, which is more appropriate
>to consider during exit?

Probably neither one. The advice I give to observers is very different than the advice I give to AFF students - and that's also different than the advice I give to the tail of an 8-way.

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>So when discussing the finances of balancing the budget, should you take his
>financial advice or his political advice?

I guess that would depend if I was an investor he was advising or a politician he was advising.



Only if you state politicians want what's best for them to the point they ignore the solution to a looming financial crisis. If you state that, then I agree with your conclusion but you are prohibited from ever using "for the greater good" and "for the good of the nation" arguments to justify elected officials' actions.

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>ps - poor analogy; both are jumpers discussing jumps, just different competence levels.

Right. And you might give them VERY different advice. For example, you would never tell an AFF student to hold off on pulling until he was sure his airspace was clear - but you might well tell someone on a bigway to do that.

>Better analogy: you've given published advice on jumps to (a) 10,000 jump instructors
>and (b) farmer and airport property managers. As an AFFer, which is more appropriate
>to consider during exit?

Probably neither one. The advice I give to observers is very different than the advice I give to AFF students - and that's also different than the advice I give to the tail of an 8-way.



You can be obstinate if you like, but I think you see my point. Either way, the fundamentals of jumping apply to your pro and first timer, but are irrelevant to observers. Jumpers seeking a safe and pleasant jump can follow the same ideas for a positive outcome. Trying to apply other topics to jump safety will not turn out so well.
witty subliminal message
Guard your honor, let your reputation fall where it will, and outlast the bastards.
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>If you state that, then I agree with your conclusion but you are prohibited from ever
>using "for the greater good" and "for the good of the nation" arguments to justify
>elected officials' actions.

Uh, OK. I think most politicians _try_ to do the right thing but:

1) They want to get re-elected and so do what the voters want instead of what's best for the US in the long term

2) They may disagree with you as to what the best thing is for the US

3) They may not understand the issues sufficiently to make good decisions

4) They may follow the lead of their party, thinking that a strong, organized position is better than a lot of individual ones

Or all of the above. We're not in trouble because politicians hate the US, we are in trouble because a lot of short term decisions have compounded into long term trouble. Even ones that made sense in the short term.

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