There is a video of Alan Grayson showing how the wealthy can spend the tax cut that they will get from extending the Bush tax cuts. If such monumental ignorance and bias had come from some second rate academic at a third rate junior college in California I doubt if I would waste my time responding. Even responding to a sitting Congressman, even though he did just lose re-election, makes me want to take some sort of mental shower afterwards.
The ridiculous stereotypes used to describe the habits of the wealthy are as intellectually offensive as the racist and anti-Semitic cartoons and characterizations used by hate groups.
Like so much of the class warfare mongers, they use distorted facts and figures. He notes that the average income of the top 1% is $1.4 million a year. Yet this is a common distortion of the statistic; the point in income which places one in the top 1% is only $380,364. For anyone who understands the real business world, which Grayson clearly does not, a business owner who REPORTS $380,000 in income may actually make a salary of $120,000 and the rest may be reported as subchapter S income on his business. The subchapter S income is not likely cash as that is used to provide for the increase in receivables, inventory, equipment and other assets.
Yet such reality does not retrain Grayson’s disgusting display, he goes to use his ‘average’ number to show that the tax cut will yield a person making $1.4 million a tax cut of $83,347. I will not even address the twisted logic that somehow not raising ones taxes is the same as cutting his taxes. He goes on to report that this mythological ‘rich’ person could buy a new top of the line Mercedes Benz every single year, he could buy a $61,800 Hermes handbag, a $56,588 bottle of wine from 1787, 20,000 jars of Gray Poupon mustard, 800 expensive cigars and light each one of them with a hundred dollar bill, .. you get the picture. He may as well just draw the picture of the pot bellied industrialist with a top hat and tails, a chauffeur driven Rolls Royce parked at the exclusive marina as he boards his yacht. And of course he insinuates that all of this is at taxpayer’s expense.
Grayson does not consider that he may invest the tax savings in a new delivery truck to expand his business, making him pay even more taxes later. He does not consider that he would buy new equipment for his plant which would add some sorely needed jobs, reduce debt, make a larger charitable contribution or add it to the pool of investment capital that is used by other companies to grow their business. He can only see greed and conspicuous consumption.
Almost 50% of the small business owners with over 20 employees fall into the richest 1% category ($380,000 in income). These are the businesses that are having the hardest time getting credit from banks. They are the ones least able to handle the mountain of new regulations this president and his party have burdened this economy with.
Taxes are only a tiny part of the problem. It is the uncertainty that restrains capital growth. Who would play a casino game where the rules changed every hand? But the greater problem is an administration where the segment of our economy we need the most is demonized with inaccurate and offensive stereotypes.
Regardless of your opinion of the proper distribution of wealth, no one with money will invest it where the risk outweighs the reward. And every new regulation, every new tax and every idiotic speech from a vacuous elected official reduces the expected return.
At least the voters had the good sense to retire him after only one short term. Too bad he had to use his remaining months to prove what an excellent decision they made.