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Monday, August 16, 2010

Hitler invading Poland = Obama's tax policies

So says Steven Schwarzman, the billionaire founder of private equity giant, the Blackstone Group. This sort of hyperbole would be laughable were it not so pervasive in today's discourse.

Schwarzman's big complaint is that private equity companies like his are beneficiaries of a tax loophole that allows them report their massive earnings as Capital Gains and pay the IRS only 15%. Last year the top 25 managers alone earned about $25 billion.

Let's assume Schwarzman, who didn't make the top 25 list has an unmarried personal assistant who earns $60,000 a year. The personal assistant pays 25% of his/her earnings to the IRS and as a salaried employee has no loopholes; 10% more than Schwarzman does.

A long delayed bill that may not even pass would raise the Hedge Fund managers' tax rate to 35%. Boo-hoo, I'm crying for them already. Schwarzman is so outraged at his affront to him that he feels the need to compare it to Hitler invading Poland because when you really think about it, it's the same thing.

These are also the same people baying that the #1 priority is to reduce the deficit, as long as someone else has to bear the brunt of that and as long as it's not billionaires like him.

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