EDITOR: The Democrat editorial mocking President Obama’s speech turned quickly to the “nonsensical” Buffet rule. The editor states that “(Buffet’s) capital gains were already taxed at 35 percent as corporate profits before being distributed to shareholders…”
Here’s a flash. Capital gains are not distributed by corporations. They are realized by investors who sell shares at a profit. If Warren Buffet as an individual investor buys a shirt company for $100 million and later sells it for $500 million he has made a gain on his capital of $400 million, on which he must pay a tax. The tax rate for this, however is only 15 percent, while his secretary may pay up to 30 percent on her labor. Buffet says that is not fair. Does the Democrat agree? Have you ever filled out Schedule D Form 1040?