Tuesday, March 11, 2014

Elizabeth Warren, foolish redistributionist

Copied from an article dated March 6, 2014 on the Think Progress website:

U.S. Senator Warren (supposedly representing Massachusetts) ...
... plans to introduce a bill that would create an “America that invests in those who get an education” by revising the tax code and enacting the Buffet rule.

The Buffet rule is named after billionaire Warren Buffet and would establish a minimum tax on income in excess of $1 million.  The measure, which never got out of Congress, raises approximately $50 billion in revenue and ensures that millionaires do not pay lower tax rates than middle-class families.
She doesn't get it.

She just doesn't get it.

Most Americans make economic decisions with a lot of knowledge of the potential gains and losses, due to the unquestionable fact that there is so much knowledge that is available to the average American.  Senator Warren underestimates the education of the American consumer, investor, and even the students.  There are many things that Elizabeth Warren knows nothing about, and that includes most of what she should know in order to do her job as a U.S. Senator.

The American economy is dynamic

People in this country are allowed to make changes to their economic situations whenever they feel like it.  Many people have done it, some voluntarily, others were encouraged to do so by the benefits of various government welfare programs, and still others were forced to accept these benefits because their income shrank.

Over the past five years, there has been a very large-scale shift in the middle-class.  Many people who were working full-time jobs before Obama was elected are now working one or even two part-time jobs, thanks to a feature of the Unaffordable Care Act which imposes a harsh tax on any company that has 50 or more employees.

As a direct result of this harsh tax, companies all across the United States have reduced the number of hours that individual employees work down below the 30-hour threshold that is mentioned in the law.  These companies are thus taking advantage of the dynamic U.S. economy, and the reason why they are doing it is because this makes good business sense.

Elizabeth Warren is a classic redistributionist

She wants to rob from the rich, with a public goal of helping the poor.  If this is done more-or-less voluntarily, it is socialism.  If, however, the wealth is confiscated by a government, then this is Karl Marx's version of Communism.

Copied further from the same March 6th article.  Notice that the writer, Mason Atkins, doesn't even call it Elizabeth's plan.  He calls it "Warren's plan" and "the Buffet rule".  This is simply a cowardly coverup.  Warren Buffet didn't push very hard for the redistribution of wealth, but Elizabeth is pushing.
Warren’s plan would allow students with outstanding student loans to refinance at lower rates.  The cost of the change would be covered by a “dollar for dollar” effort where for “every dollar the Buffet rule brings in, we use that dollar to refinance student loan debt,” she explained.  She estimated that recent graduates who borrowed the maximum in undergraduate loans could see their payments drop by $1,000 a year and total interest paid over the life of the loan could be cut nearly in half.  Students with graduate loans or borrowers from private lenders would save even more, Warren projected.

Warren Buffet's "rule" and his projections were forced on him by a president who has been proven to use the I.R.S. to harass his political opponents.  Mr. Buffet has written extensively about wealth creation, and he has authentic first-hand experience.  The mutual fund that he began decades ago now has shares that are being bought and sold at a price of over $180,000 each, up from "only" $170,000 three months ago.

Here are some price charts of the Barkshire Hathaway Class A shares:
Three months Six months
One year Two years Five years

Please notice that five years ago, according to this chart, the price of this mutual fund was "only" around $80,000 per share.  Since then, shareholders have seen the price grow by an additional $100,000 per share.

Warren knows how to make money, and it isn't by taxing the wealthy people who include his earliest and thus wealthiest shareholders.

March 25, 2015 update

Elizabeth Warren's student loan plan has been defeated.

Copied from an article published today (March 25th) in The Hill, a newspaper that covers Capitol Hill, where Congress does its' business.
Senate Republicans on Wednesday blocked an effort by Sen. Elizabeth Warren (D-Mass.) to attach an amendment aimed at lowering student loan rates to the budget.

Senators voted 46-53 against Warren's amendment to the Republican budget resolution.

Warren's amendment would have allowed people with college loan debt to refinance at interest rates from the 2013-2014 academic year.  The Massachusetts Democrat, who is rejecting calls to run for president, said the move would allow undergraduates to refinance their loans to a 3.9 percent interest rate, with a "slightly higher" rate for graduate students.

"Millions of borrowers are still stuck paying interest rates at 6 percent, 8 percent, 10 percent and even higher," she said.

Her plan would have been paid for by requiring millionaires to pay at least a 30 percent effective federal tax rate.
Her plan would redistribute money from millionaires to college students.

That's redistribution, which inflicts economic punishment on those millionaires for the "crime" of having a lot of money.

Elizabeth's friend Barak also wants to redistribute wealth

The first YouTube video was recorded, with Barry's own voice, in 1998.

In the second video, you will hear Barry's voice as he called in to a Chicago radio station in 2001, fourteen years ago.  The transcript of his words is printed onscreen in the video.

America, love it or leave it

I really hate to break the bad news to Elizabeth and her redistributionist friend Barak Hussein Obama, but some of the wealthiest people in this country have had enough of the "tax the rich" dreamers and schemers.

They're leaving the United States.

This is the first sentence in an article dated March 11, 2014 on the Finance Page of the Yahoo website.  There are brief interviews with five former Americans later in the same article.
3,000 Americans around the world renounced their citizenship last year.  Meet five U.S. citizens who have given up their passports -- or are thinking about it -- to escape an overly complicated tax code.
When you see the phrase "overly complicated tax code", remember the Dodd-Frank law (PDF 848 pages, not counting the regulations), which regulated a very large portion of the American banking sector that was functioning with already high government regulations, and remember the thousands of pages of the Unaffordable Care Act, (PDF, 906 pages, not counting the regulations), which is now bankrupting millions of Americans because of higher insurance premiums caused by unnecessary "benefits" like pregnancy care for single men and senior citizens.  Are single men likely to get pregnant?  How about senior citizens?

Leaving America and moving to Belize

Copied from an article dated November 24, 2013 on the Huffington Post website.  All links in these paragraphs were in their article.
Expats have settled all over Belize, but one spot is starting to earn lots of attention lately... Corozal, the northernmost of Belize's six districts.  It has the second-largest population of the districts with about 35,000 people and shares the border with Mexico.  Once considered the undiscovered gem of Belize, this district and its tidy little capital of Corozal Town are quickly rising on the radar of foreign retirees and other expats, and there are lots of reasons why.

One big reason is that it's generally less expensive to live here than are other areas of Belize.  In large part this is because of that border we mentioned with Mexico... the city of Chetumal, Mexico, is just on the other side.  Since Belize has little domestic manufacturing and relatively high duties on imported goods, shopping trips to Chetumal -- to Sam's Club and other big-box stores and supermarkets -- help Corozal residents beat the higher prices on imported goods paid by folks elsewhere in Belize.

Chetumal is also where most in Belize go for medical care from an excellent, modern hospital.  But there's also a small and efficient public hospital in Corozal Town, fine for most general medical needs.

By the way, if you're looking to relax and enjoy life when you move to Belize, you can definitely do that. For just $25 to $30 Belize dollars ($12 - $15 USD) per day, you can hire someone to clean your house, do your yard work and more...

Real estate in Corozal is also less expensive than other places in Belize because Corozal doesn't have the notoriety of more popular destinations like Ambergris Caye or Placencia.  Deals still abound in Corozal for raw land, single-family homes, and residential developments.  Another plus is that this part of Belize gets less rainfall than the rest of the country, a big benefit for fans of dry, sunny days.

If you can see why Belize is such an attractive place to live, you can also see a good reason why people like Elizabeth Warren should think twice before trying to force wealthy and already heavily-taxed Americans to pay even more taxes for any reason, including subsidies for college students who have student loans.

Oh by the way, during 2013, a record number of Americans emigrated to other countries.

Some reading material for Senator Elizabeth Warren

I hope she reads them before she makes another fool of herself.

These essays were all published on my "Conserving the Nation" blog.

Redistribution of wealth, published September 28, 2012.

Taxes and national income, published October 22, 2012.

We're ignoring 200-year-old wisdom, published November 15, 2012.  Benjamin Franklin said that a penny saved is a penny earned.  I simply updated his wisdom for the 21st century by modifying his sentence into the following sentence, which every government official, including one particular Senator, should read and understand.

A trillion dollars saved (by not spending it) is a trillion dollars earned.

I do hope that she understands this principle before I move to Belize.

May 19, 2016 update

May 20, 2016 update.

She is being considered as Hillary's Vice-President.

These are the first two paragraphs of an May 18, 2016 Editorial in the Washington Times.  The links in these paragraphs were in their story.
If the millennials can’t have Bernie Sanders at the top of the Democratic ticket, Hillary Clinton is feeling the burn (if not the bern) to put Sen. Elizabeth Warren at the bottom of the ticket.  This would wreathe the campaign in clouds and tendrils of estrogen, the female “gender” hormone, and give Hillary the opportunity to set two precedents in one.

The Constitution requires that both president and vice president be Native Americans, and Ms. Warren claims to be a Native American as well (born in Oklahoma), descended, at least in part, from the Delaware and Cherokee tribes.  Her claim is in dispute, however, and the only proof she has produced to back the claim she made in a campaign biography in 2012 is her contribution of two “family recipes” to the Pow Wow Chow Cookbook, published by the Five Civilized Tribes Museum in Muskogee, Okla., in 1984.

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