Why You Should Laugh, EVEN HARDER, When ANYONE Quotes the Heritage Foundation

DeMint announced Thursday that he planned to succeed Ed Feulner, the longtime head of the Heritage Foundation, next month. The news of his departure was first reported by the Wall Street Journal.

“I’m leaving the Senate now, but I’m not leaving the fight. I’ve decided to join The Heritage Foundation at a time when the conservative movement needs strong leadership in the battle of ideas,” DeMint said in a statement. “No organization is better equipped to lead this fight and I believe my experience in public office as well as in the private sector as a business owner will help Heritage become even more effective in the years to come.”

via DeMint will leave Senate to head Heritage Foundation – First Read.

Previously noted here, where the Heritage Foundation’s predictions about what the Bush Tax Cuts would do for the economy were found to be wrong in every aspect.

Now they have the Tea-Nuttiest guy taking over, so expect even less correlation between reality and their “predictions” about reality.

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The Effect Of Tax Rates on Investment Thinking via Warren Buffet

SUPPOSE that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”

Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.

Between 1951 and 1954, when the capital gains rate was 25 percent and marginal rates on dividends reached 91 percent in extreme cases, I sold securities and did pretty well. In the years from 1956 to 1969, the top marginal rate fell modestly, but was still a lofty 70 percent — and the tax rate on capital gains inched up to 27.5 percent. I was managing funds for investors then.

Never did anyone mention taxes as a reason to forgo an investment opportunity that I offered.

via A Minimum Tax for the Wealthy – NYTimes.com.

But, you say to yourself, what would Warren Buffett know about investing.  And there’s the rub.