Crazy Liberals

NY Times on the Minimum Wage: 1987 vs. 2012

Mr. Andrew Roth - February 16th, 2012

The Grey Lady advocated for no minimum wage in 1987 and then advocated for a higher minimum wage in 2012.  Mark Perry has the deets.

After Three Years, Obama Promises Only One Term

Mr. Andrew Roth - February 01st, 2012

Buffett's Faulty Logic

Mr. Andrew Roth - January 27th, 2012

By now, everyone has heard Warren Buffett complain that he pays less than his secretary does in federal taxes, and therefore, the government should raise his taxes.  But he fails to include the taxes that he pays as a shareholder of his company, Berkshire Hathaway.  This blogger explains it quite nicely:

Imagine that you are self-employed. Every year, you earn $100,000, pay 35% in taxes and have $65,000 left in your pocket. Now you form a corporation. $100,000 goes into the corporation. There is a corporate tax rate of 25%, so that leaves $75,000 which you pay to yourself as a dividend which are taxed at 15% which leaves you roughly $65,000. So sure, you could say that your tax rate was 15%, but that would be nonsensical. Nothing of significance has changed. What about if you get a partner and the corporation earns $200,000 paying $65,000 to each of you? Well, what changed? Nothing.

Hat tip: Greg Mankiw

Cato Institute Fact-Checks Obama's State of the Union 2012

Barney Keller - January 25th, 2012

 

A "Reasonable Profits Board"?

Mr. Andrew Roth - January 20th, 2012

Check out this crazy idea:

Six House Democrats, led by Rep. Dennis Kucinich (D-Ohio), want to set up a "Reasonable Profits Board" to control gas profits.

The Democrats, worried about higher gas prices, want to set up a board that would apply a "windfall profit tax" as high as 100 percent on the sale of oil and gas, according to their legislation. The bill provides no specific guidance for how the board would determine what constitutes a reasonable profit.

The Gas Price Spike Act, H.R. 3784, would apply a windfall tax on the sale of oil and gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding "a reasonable profit." It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress.