This is what happens when non-businessmen run the country.
Progressives, including President Obama, are fond of the Buffett Rule, which roughly states that wealthy people should not pay a lower tax rate than their secretaries.
Mitt Romney said Tuesday that he pays an effective federal tax rate of 15 percent.
White House Spokesman Jay Carney responded, "This only illuminates what (Obama) believes is an issue, which is that everybody who's working hard ought to pay their fair share. That includes millionaires who might be paying an effective tax rate of 15 percent when folks making $50,000 or $75,000 or $100,000 a year are paying much more."
That's true, many households making $75,000 pay more than a 15 percent tax rate. But this is misleading. Here's why.
Romney, and other people whose primary income comes from investments, pay that 15 percent rate. "Working" people can pay more than that on income from their wages.
There's a huge difference between money earned from investments and money earned from wages.
Someone getting a salary or hourly wage is virtually guaranteed to see that money but an investor's investment can disappear overnight. If there isn't an incentive to risk that money, i.e. if he's taxed at the full rate if he's lucky enough to see a profit, he will make fewer investments.
That means fewer dollars going into struggling businesses, or expanding businesses, or startup businesses, and that's the last thing our economy needs.
But people in the Obama Administration, who have a strained relationship with the private sector, either don't understand that or understand it and are placing politics ahead of the economy. Either way, they do damage to the country.