11:56AM – Warren Buffett has written an article:in the Washington Post lambasting the tax cuts proposed by Bush and signed into law today by a 50-51 vote (Cheney cast the tie-breaking vote). In his article he states clearly the consequences:
The Senate’s plan invites corporations — indeed, virtually commands them — to contort their behavior in a major way. Were the plan to be enacted, shareholders would logically respond by asking the corporations they own to pay no more dividends in 2003, when they would be partially taxed, but instead to pay the skipped amounts in 2004, when they’d be tax-free. Similarly, in 2006, the last year of the plan, companies should pay double their normal dividend and then avoid dividends altogether in 2007.
He goes on to say that who will end up paying for this:
In other words, if I get a break, someone else pays. Government can’t deliver a free lunch to the country as a whole. It can, however, determine who pays for lunch.
Definitely worth a read. Truly an icon fighting against America’s New Socialism Deal.
I called up my credit card company and set about to fix my account so that it better reflects how the US government manages it’s debt/credit. Here’s how it went:
“I’m increasing my spending limit to oh… a million dollars or so. And by the way, I don’t think I’ll be paying as much monthly anymore, so you guys need to lower my payment to three dollars a month. Oh and I think I’m going to max out my card in a year by helping my buddies pay off their credit cards, so we’re going to have this conversation again pretty soon and I’ll probably need to bump my limit up to about three million or so.”