The Train Keeps A Rolling

In continuance of their tired attacks on those evil Koch Brothers and in effort to slam the GOP, did those on the left forget to note that without the pipeline the oil is currently transported by rail and who is among those profiting from it?

That would be our favorite ukulele playing uncle, Democrat Warren E. Buffett of Omaha, a significant backer of Barack Obama.  In 2010, Buffett sold stakes in other rails, inclusive of Union Pacific (UNP:NYSE) and Kansas City Southern (KSU:NYSE), to purchase Burlington Northern Santa Fe, which became a subsidiary of Berkshire Hathaway Inc.

Buffett friend Bill Gates has also taken large equity positions in railroads.

I do not have an issue either way where investors legally find return on investment, just pointing out what DemoNews.org failed to be transparent about.

With transparency in mind, full disclosure would note I am a native Nebraskan and have been a longtime shareholder of Berkshire Hathaway (BRK.B:NYSE). The train keeps a rolling! #GBR!

Warren Buffet with Nebraska Cheer at BRK Annual Meeting

The Santelli Slam

President Obama, unable to run his campaign on the merits of his first term since it has been nothing short of abysmal, has resorted to tactics unbecoming the Grinch. Obama is attacking anybody and everybody, but perhaps the worst aspect of his antics is his economic commentary surrounding what is known as "The Buffett Rule".

Generally speaking, President Obama indicates that Mr. Buffett pays less taxes than his secretary, which simply is not the case. It has been reported that Mr. Buffett's secretary does not make enough annual salary to reach the 25% bracket; therefore, she pays taxes at the 15% rate. Mr. Buffett, provided he makes a salary over approximately $150,000, pays 25% minimum on his income, which is more than his secretary. It should be noted that Buffett makes the majority of his income on dividends from his investments, including his company Berkshire Hathaway, and dividends are taxed at 15%, equal to his secretary.

President Obama is not being square with the American people when he misrepresents the facts in such a deceitful way. Most Americans are not shareholders of Berkshire Hathaway and do not engage in reviewing the annual report and therefore, fail to recognize the lies being told them. It is noted I am a longtime Berkshire Hathaway shareholder and read the annual reports.
The fine editorial page at Investors Business Daily examines this mess further.

Imagine we did hit the most wealthy with additional taxes in an effort to force them to "pay their fair share". Where would that get us? CNBC's Rick Santelli, father of the TEA Party, gives us an earful from his perch at the Chicago Mercantile Exchange.



The entire argument Obama is presenting to the American people on this subject is incorrect, and he is well aware of it. This speak volumes about his character, since America is on the precipice of financial disaster. Obama's actions tell us he is much more concerned about being re-elected than solving the critical economic issues of our time.

Hitting the extremely wealthy with a heavier tax burden will not solve problems, instead creating a host of them. If taxed a higher rate, these folks (investors) will not be incentivized to earn more and will invest and spend less; therefore, creating less commerce which in turn results in less tax revenue for Uncle Sam and hurts those Obama claims he is attempting to assist. As Santelli points out, the impact on solving the massive debt issues would hardly be measurable.
This whole level of discussion is nothing more than a campaign gimmick, one that divides our citizens in class warfare over a false premise. With our country in such great economic peril, I find these actions by our President and his surrogates nothing short of disgraceful.

Omaha Oracle Fumbles On Taxes

When you tax something, you get less of it. This simplistic theory is Economics 101, which is why it is so very puzzling that the worlds most successful investor, Warren E. Buffett, CEO of Berkshire Hathaway of Omaha, is so out to lunch on taxation. Is he having lunchtime bananas with the monkeys over at Doorly Zoo?

As a fellow Nebraskan, Cornhusker and stock investor, I have long admired Warren Buffett, often employing many of his techniques in my investment philosophy. Like Mr. Buffett, I am a longtime shareholder of The Coca Cola Company (KO:NYSE) and I do own shares of Buffett's Berkshire Hathaway (BRK.B:NYSE). I have always listened carefully to Buffett on market matters, noting his analysis and transactions on the corner of Wall and Broad.

Buffett, now ranking as third among the most wealthy individuals in the world, and unfortunately a big supporter of President Obama, wrote an opinion piece recently in The Wall Street Journal, championing the need for revenues (raising of taxes) and an increase in the level of taxation among the wealthiest Americans. In other words, taking money from successful individuals to give to those who for whatever reason have failed to achieve high levels of income. That is like Nebraska giving a less fortunate Kansas State three touchdowns. Absurd!

Buffett's unyielding support of President Obama, who has destroyed job creation and investment with his high taxation, expansive regulatory control and wealth redistribution policies, is bewildering. PGA golfer Paul Azinger has created more jobs than Obama. But for Buffett to editorialize support for policies that run against sound free market economic theory suggests the best days of Buffett may be behind him.

Buffett claims his secretary pays higher taxes in relative terms than he does. Since Buffett draws the greater majority of his income through stock dividends, this statement is thankfully accurate. Investors Business Daily explains and properly calls Buffett out.

Berkshire Hathaway's stock price has been diving since about the time Buffett editorialized, or when Obama and his policies handed Uncle Sam his first credit downgrade. Given the thought process behind the piece and the economic policies Obama and Buffett are eager to employ, one can certainly understand why. Furthermore, Buffett and Berkshire actually have tax issues to deal with, an incredible irony considering. Where is Timothy Geithner when you need him?

The bottom line is Buffett is far off the mark. Government has been criminally negligent engaging on a spending spree which is set to bankrupt generations. Given that alone, government has demonstrated their inability to efficiently utilize the tax dollars they do receive. For America to emerge out this economic malaise, regulations must be retracted and tax rates need to be lowered, allowing businesses, entrepreneurs and small business to to create, innovate and flourish. This will increase the tax receipts the government receives all the while putting American citizens back to work, restoring pride and dignity to our first class workforce.

At such time, would it be too much to ask for government to discontinue rewarding bad behavior, cease all redistribution of wealth policies and spend our tax dollars wisely? As you may have heard across the fruited plain recently, we are TEA, or taxed enough already.

Out of the Fog Blows A Horn

Tim Pawlenty is in. Newt Gingrich is ready. Real estate mogul Donald Trump is creating quite a stir.

The list of potential challengers to a second Obama term is long, and given the rapidly deteriorating status of our once great nation, it well should be. Although the bench is lengthy, many in the mainstream media contend the list lacks quality contenders. This is far from true, as is most of the "news" you get from these lemmings. However, you could probably grab someone from seat 32 row 22 of dugout section 216 of the next home game for the Kansas City Royals and improve on Obama.

In fact, I have been touting such a noteworthy character.

I mentioned him in my blog post "Water Hazard a Top Flite Crisis" back in June of 2010. In August of 2010, in my post "Locked Out", I said give him the key! Just a few weeks ago, I again singled him out in my post "Happy Presidents Day" He was recently discussed on The Glenn Beck Program!

Now, for real, it looks like he is positioning himself and becoming a star all over again.

Foghorn Leghorn 2012!!!!! An improvement, I say, an improvement indeed. Almost anyone with any common sense would be. Let's get to work!

GEICO is a subsidiary of BERKSHIRE HATHAWAY, of which I am a shareholder.