Warren Buffett wants to pay higher taxes

Warren Buffett

/ AP Photo

Billionaire investor Warren Buffett wants to pay higher taxes.

In an op-ed in the New York Times, the chairman and CEO of Berkshire Hathaway urged politicians in Washington to raise taxes on the "mega-rich" who have been "coddled long enough by a billionaire-friendly Congress."

Buffett, who has repeatedly argued for higher taxes on the rich, said the tax rate on his 2010 taxable income was about 17.4 percent, lower than any of the other people who work for him. Their rates ranged from 33 percent to 41 percent, he said.

The oracle of Omaha, as he is known, called on the newly-created "super committee" of 12 lawmakers tasked with improving the nation's fiscal health to immediately raise taxes on the richest 0.3 percent of Americans, though he declined to specify what he thinks the rate should be.

Buffett said the notion that capital gains tax rates should be lower than taxes on wages because it promotes investment is folly.

"People invest to make money, and potential taxes have never scared them off," Buffett wrote.

"I have worked with investors for 60 years and I have yet to see anyone -- not even when capital gains rates were 39.9 percent in 1976-77 -- shy away from a sensible investment because of the tax rate on the potential gain," he said.

Buffett said that the tax rates on his investment income were higher in the 1980s and 1990s than they are today and that has resulted in fewer jobs.

"I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what's happened since then: lower tax rates and far lower job creation," he wrote.

CBS MoneyWatch Editor-at-Large Jill Schlesinger seeks to clarify how much money those higher rates could raise.

[FP1970]

Not too long ago, Warren Buffet was pushing for an inheritance tax and it most people's minds, that led to images of an old millionaire dying off and leaving his fortune to snotty heirs...so it seemed reasonable. Then it was pointed out that a lot of the "millionaires" who'd be targeted by the proposed inheritance tax would be people who started small and medium sized businesses that they want to pass along to their children who might have worked in the business anyway. The inheritance tax, it was found, would make it more difficult and expensive to pass on the family business so in many cases, that would mean selling out to a large conglomerate that buys up smaller successful businesses--such as the one owned by Warren Buffet of all people.... You can be sure that Warren Buffet will organize his own affairs to pay the least tax possible and the horrible millionaires for whom he is proposing higher taxes have a lot less money than he does. Will that also be of benefit to and old "merger and acquisition" man like Mr. Buffet?

[dogtic]

Well said! Warren Buffet is the ultimate wolf and a fascist to his soul. Free Markets have not ruled since the early 1900s.

[hancul6]

This is bunk. Warren Buffet pays on capitol gains tax at that 17% rate. He is ripping off the system by using a loop hole in the tax code. He does not draw a salary because that means he would have to pay income tax at the 35%+ rate.

The capitol gains tax code is designed to use the gained capitol to build the infrastructure of the business to stimulate growth, more jobs. Warren is tapping into the capitol gains and keeping some of that money for himself. This is what is unfair. It is the politicians in congress, and the man that now sits in charge, Obama, that need to make the changes to the tax code. We need tax reform not tax increases. We need a fair tax system, that closes the holes that the "rich" and the 40+% that pay not tax take advantage of.

It would be absurd to raise the tax rate on anyone through the current broken, unfair, burdensome, tax code.

[Lindag10]

Mr. Buffett has a valid point. It is grossly unfair that the wealthy pay half the tax rate that a middle class person does. It's also unfair that many large corporations in the US pay virtually NO taxes on their PROFITS. The Republican and TEA Party argument that these people are "job creators" is nonsense. If that were true there wouldn't be such a high unemployment rate. This is causing the middle class to rapidly disappear as the ONLY jobs available now are very low paying (usually minimum wage) which creates a cycle of poverty and diminshed demand for the goods and services that has fueled our economy in the past. Good for Mr. Buffett, he's not consumed with greed as are most of the very rich.

[elliesamericana]

Buffett is simply saying that it is the patriotic and moral duty of those of us who have to pay our fair share of taxes. America's wealthy have the lowest tax rate of any upper class in the world. They only pay out 1-2% of their net worth in taxes as most of their money is in tax free munis, bonds, dividend paying stocks, hard assets that generally are not subject to taxes. The rest of us pay out around 20-30% of our net worth as our net worth is what we earn in a year. Simply allowing the reckless bush tax cuts to expire would go a long way towards putting our nation back on the road to fiscal solvency. Buffett should not be the one to write a big fat charity check. He is simply stating taxes need to be fair and shared. Rich people are Americans too, but I don't see them serving in the military, so they need to pay back to the rest of society for what our country has given them. Respectfully, retired US Army Medical Officer.

[andrewjsacks]

Sane and sage advice, of course. Good man, Warren.

[flameway]

Warren Buffett and Bill Gates are major philanthopers. Of course they should donate to their country by paying more to the IRS (if that's the most efficient way to help our deficit). All the rich should! In fact, we all should! We give donations to Haiti and to Japan. It's about time we start helping ourselves. The IRS certainly causes a lot of negative vibes for everyone, but they do have a section on their website that allows Americans to donate to our government. This part of their website should be advertised the way that the Red Cross and other aid-giving association are advertised when other countries are in trouble. Americans should be assured that their donations are being used to make our country solvent again and also assured that their donations are voluntary and will in no way cause more taxes to be required in the future.

[memphispiano]

I have a great idea....if Warren Buffett wants to pay higher taxes, then let Warren Buffett pay higher taxes!!!! The IRS is more than happy to take contributions. At the same time, why don't the do-gooders in Hollywood send in a little extra too! They love to demand that the government do more; why don't they pay for it!

[MurdochSucks]

Yea, and Tennessee never asks for help in Federal Aid when natural disasters blast their homes away. Where do you think that money comes from? It doesn't grow on trees, contrary to what the red states seem to believe.

[elliesamericana]

I often hear this same argument from radical conservatives. The basic point is that taxes need to be fair. The wealthy have enjoyed a free ride for over 10 years with the bush tax cuts. Conservative argument there is they pay more taxes so they should get a bigger cut. Well, no they should not. They have made their money on the opportunities this country has given them that are not generally available to the rest of us. Even on my ~$100,000+ income I get breaks not that available to those in lower income brackets--and the truly wealthy get even bigger breaks--making me look like a pauper. Buffett is fond of pointing out that his tax rate is half that of his lowest paid secretary. There is no way that this is fair. The wealthy already suck up money like a fiscal black hole. Money does not trickle down like the repugs are so fond of saying, rather it flows up from the poor & middle class to the upper classes. Since rich people do not spend much money in proportion to what they have, nor employ anybody much either, they just sit on it watching it get bigger. The only way to stop this is to tax them more on what they have and redistribute this wealth to the rest of the country that has given them such advantage. Respectfully, retired US Army Medical Officer.

[Harden_Tar]

I would think that Mr. Buffet could simply elect not to claim whatever deductions are allowing him to skate on his taxes. He could set an example and use peer pressure on the other gazillionaires. Won't make a dent in the debt monster in any event until spending comes down.

[rdw1mt]

send the check, all you hollywood elite and dimos - and make it a really big one. still won't make a dent in the deficit. it is not a revenue problem, it is a spending problem. spending monies from future generations, who have NO say in the matter. stop the spending and get out of the way of business. it will take a while, but we can recover. if not, you and future generations will pay a BIG price.

[aldrich617]

Buffett apparently lives in a circle of unusually enlightened
job creators/destroyers. A larger minority of the super-rich than
his own circle of amicable friends are highly organized and dedicated to owning everything and controlling the lives of everyone (including eventually Buffett himself, may he live so long). He sounds quite naive really, and rather tolerant of the sins the the nascent Kleptocracy.

Buffett's welcome suggestion that millionaires and billionaires
could pay a larger amount in taxes without doing the economy any harm would actually go a long way toward solving the US debt
problem. Over ten years a 8% increase in their tax rate would
bring in an extra trillion dollars in revenue (extrapolating
from a PBS news segment about a TEA Party symapathizer (Why stop
at throwing tea overboard when you could sink the whole merchant
fleet?).

[nearl451]

Sane advice.

Too bad the greedy bastards on this board can't see it that way.