By Bill O'Reilly
Nothing the President said last night surprised me. He is convinced the federal government can unleash economic justice that will bring prosperity to the U.S.A. There is no question the President really believes that.
But I don't. Let's start with the capital gains deal. The President is making a big issue out of Warren Buffett secretary paying more tax than the billionaire does. In fact, the secretary Debbie Bosanek sat near the First Lady and the camera zoomed in.
Once again, the President did not tell the folks the difference between income taxes and the tax on cap gains. He is lumping it all in together.
(BEGIN VIDEO CLIP)
OBAMA: Tax reform should follow the Buffett rule. If you made more than $1 million a year, you should not pay less than 30 percent in taxes.
(END VIDEO CLIP)
O'REILLY: Well, that's interesting because back in September 2008, I talked with President Obama about the same issue.
(BEGIN VIDEO CLIP)
O'REILLY: Listen, if you raise the cap gains tax that's going to inhibit investment. I won't buy as many stocks and many, many more people won't. If do you that it's going to come back to bite you, Senator.
(CROSSTALK)
OBAMA: If we went up to a prohibitive rate, you are right. But look, I've --
O'REILLY: 30 percent on that's Vegas, man. I'm not going with those odds. 15 I'll pay. Not 30.
OBAMA: I didn't say we would go to 30.
O'REILLY: But you said between 15 and 28.
OBAMA: No let me say is let's say we go up to 20.
O'REILLY: 20 is ok. Not 25.
OBAMA: Well, there you and I agree.
O'REILLY: All right.
(END VIDEO CLIP)
O'REILLY: Well, not now we don't because he's talking 30 percent. And if the cap gains tax does go to 30 percent or even 25, I'm not going to buy stocks. It's too risky. Remember, the money I'm investing in the stock market or bonds or anything else I have already paid taxes on that money, 35 percent my bracket.
So any cash I make on stock sales, if I'm lucky enough to get a winner, savings and bond interest gets taxed again. But if I lose in the market I can only deduct $3,000 a year.
There is no question America needs money. We owe $16 trillion. But instead of reforming the tax code, reforming entitlement spending, trying to get as much revenue as possible by closing loopholes; the President wants to tax the wealthy as much as he can. Remember, the highest tax revenues in recent years came under President Bush in 2007 because the economy was worried; 15 percent of a lot is better than 30 percent of a little.
"Talking Points" believes firmly that if the cap gains tax is raised, the economy will be hurt by declining investment.
The other sound bite that caught my ear last night was this one.
(BEGIN VIDEO CLIP)
OBAMA: America is back. Anyone who tells you otherwise, anyone who tells you that America is in decline or that our influence has waned doesn't know what they're talking about.
(END VIDEO CLIP)
O'REILLY: Uh-oh. That might be me. I don't think American power is back. How can it be when you have massive debt and chaotic government in Washington and no entitlement reform? How can it be?
One more thing, Medicare spending stands at $566 billion this year alone; $566 billion. If you take Medicare off the table, we might begin to get some control over the budget.
How would you do that? Well, you make changes. You factor in wealth and age maybe you raise a little bit of the age, you know. If you're making a lot of -- if you have a lot of cash, you don't require as much or something like that. And they you add a three percent national sales tax for everybody. That would pay most Medicare expenditures.
Now, that's the kind of creative thinking we need in the country. Isolate the problem, come up with a solution. Class warfare is not a solution.
And that's "The Memo."
Pinheads and Patriots.
Eighty-one-year-old Warren Buffett was on Chinese TV recently.
(BEGIN VIDEO CLIP)
WARREN BUFFETT, BUSINESSMAN: I've been working on the railroad, all the live long day. I've been working on the railroad, just to pass the time away.
(END VIDEO CLIP)
O'REILLY: Apparently, Mr. Buffett's appearance was on tape for a charity deal. He will not -- I repeat, not -- be competing on "American Idol" anytime soon. You can decide if he's a patriot or a pinhead.
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