Vicious Rants of an Angry Yellow Man

When Warren Buffett said that rich people pay too little, a lot of Republicans blasted him saying that he is so rich, it does not matter to him how much he pays. They said that it is the small business people who make between $250,000 to $1,000,000 that would be affected if the Bush tax cut were to be reversed. They argue that if the top bracket would have to pay more, these small business people would be less likely to expand their business and thus hurt the economic recovery. I find this argument is absurd.

Let's look at the math. The top tax rate during the Clinton years was 39.6%. The top rate with the Bush cut is now 35%. So basically the top bracket people will pay 5% more after the first $250,000. So the guy who makes say $300,000 with pay 5% more of $50,000, ie $2,500. I don't think that any business person will make a decision on hiring more employees or expanding his company base on $2500. Even the guy who makes a million will pay 5% more of $750,000 or $37,500 more. Would a guy who makes a million from his business make a hiring or expansion decision on $37,500? I don't think so. People who want to build their business would not let a few thousand dollars stop them from achieving what they want. Anyway if tax cuts increase hiring and business expansion, then how come that didn't happen after the Bush tax cut?

If people say that Buffett can be generous because he makes so much that it does not matter, then I think you can say the same for the other 400 plus billionaires in America. Why aren't many of them stand up and say the same?