GOP to Warren Buffett: Show us your tax returns

Warren Buffett

/ SAUL LOEB/AFP/Getty Images)

Updated at 5:50 p.m. ET

Now that President Obama has named an economic proposal after billionaire investor Warren Buffett, some Republicans are demanding evidence that Buffett's personal economic record actually represents "the gold standard" they believe it should.

"If he's going to be the gold standard, so to speak, in terms of what our tax policy should be, yeah, let's look at it [Buffet's tax returns]," said Sen. John Cornyn, R-Tex., in a Thursday interview with ABC News.

The proposed "Buffett rule" -- named in honor of Buffett after he wrote a much-discussed op-ed calling on Congress to raise taxes for wealthy Americans like himself -- would ensure that taxpayers who make over $1 million a year are taxed at the same overall rates as middle class Americans, thus reducing the deficit by about $3 trillion.

Democrats have largely applauded the proposal, but Republicans in Congress, many of whom oppose any increase in taxes whatsoever, argue the rule would do nothing to help the unemployed.

Now GOP lawmakers want to know more about the particulars of Buffett's finances -- particularly since some have espoused the suspicion that much of Buffett's income is derived from capital gains, which have already been subject to a tax.

"I know that Mr. Buffett's not likely to release his tax records but I'll bet what it'll show you is that most of what he earns is from capital gains, which is taxed at a 15 percent tax rate rather than deriving it as income [for] which he'd pay a much higher tax rate," Cornyn said on ABC. "If he doesn't derive ordinary income and if all of his, what he puts in his pocket is based on capital gains, I think that would be an important information."

Rep. Tim Huelskamp, R-Ka., argued in an open letter to Buffett that if the investor is to have a rule named after him that "shape[s] an entire nation's tax policy," he should be willing to provide "evidence to justify such a change in policy."

"The 'Buffett Rule' -- as it is called -- uses your anecdote to shape an entire nation's tax policy," Huelskamp writes. "Given the use of your name and your story as the guiding force for the President's policy prescription, it is my hope that the evidence to justify such a change in policy will soon be available for public review."

Tea Party Republican Sen. Jim Demint, R-S.C., also urged Buffett to make his tax returns public -- so that America could "see what he's really doing."

"I'd love to see Buffett's tax returns so we can see what he's really doing, because he's kind of operating in the dark here, making some claims," DeMint told Bloomberg Television, according to the Hill.

Update: Talking Points Memo points out that in an interview on the Charlie Rose Show last month, Buffett said he brought his tax return with him to illustrate the point that he should be taxed more.

[secretsquare12]

I don't even understand what they're talking about. They suspect that most of his money is from capital gains? I mean, DUH. That was the POINT.

[Term_Limits_Please]

At the end of the day....America cannot be great unless it has a healthy and thriving middle class. We've always carried this country on our backs and we will continue to do so if allowed.

Without us, America goes down. End of story!

[Term_Limits_Please]

I know this isn't in the article, but I have to mention it. Recently Boehner was bragging about his exceptional round of golf to VP Biden. Boehner shot a 67!

Ladies and gentlemen, a 67 is exceptional! I've played a lot of golf, I never have had that score, nor do I personally know a golfer who has had that score.

And I'm here to tell you....you have to play golf ALL THE TIME to be able to shoot that score.

This guy, and the rest of the gals and guys, shouldn't be working on there golf games...they should be working at getting people jobs...

PERIOD!

[Term_Limits_Please]

The point IS is that millionaires are paying only 15% on capital gains. The point IS is that capital gains are where most if not all of their income comes from.
The point IS is that 15% is not really appropriate when smaller incomes are being taxed at greater amounts....
Quit trying to spin it any other way that what it is.

[peteg2]

If you add together current taxes at every level of government, Warren Buffett, billionaire, pays a total tax rate (federal, state, local, corporate) of 11% of his income and investment gains. A typical single person earning a minimum wage pays taxes amounting to 37% of her wages, more than triple Mr. Buffett's rate.

Proposed Fare Share Tax Plan (http://fairsharetaxes.org)
1. Eliminate: Social Security taxes (fund SS from general revenue), sales taxes, property taxes, estate taxes and tolls
2. A reformed very simple Federal Income Tax on income above a realistic poverty level (25,000 for a family of three); Deduction only for certain medical expenses exceeding 10% of income. Effective rates: 10% for $75,000; 20% for $200,000
3. If you are a millionaire, there is a federal tax on your net worth. Effective rates: 0.2% for $1million; 2% for $30million.
4. State and local governments set a surcharge on your federal tax bill to fund all their spending

This plan would cut the total (fed, state, local, indirect) taxes paid by a family earning $73,000 from 39% ($28,000) to 23% ($16,000), have the very wealthy finally pay their fair share, balance all government budgets, and (with some sensible spending cuts) allow us to pay down our national debt. It would take you one hour a year to deal with all you taxes. See the plan - http://fairsharetaxes.org/ProposedReform.aspx. Join the movement - http://fairsharetaxes.org/ProposedReform.aspx

[noloyalisti]

So here we are in the SECOND Great Republicon Depression of the last 100 years caused by the insane Reagan economic policies of fake free market predatory capitalism. And this Republicon criminal party of death and spending has the nerve to demand anything? What has our country come to?

[placeangels]

Corporate income $10,000,000 , taxes to Fed $3,500,000, dividend net to shareholders , taxes to Fed $975,000, total FED taxes paid on income $4,475,000 or a total rate of 44.75%

[bill645]

The act of investing is separate from the operating activity of the underlying company. There is no double-taxation. Corporations have long sought (and won) legal status as entities that are separate and distinct from their owners - so they should be taxed accordingly. Saying that the dividend/cap gains tax is double-taxation is similar to saying that a restaurant should not have to pay tax on the income that it generates, because its revenues are derived from funds that its customers have already been taxed on. Both arguments are absurd. The corporation is a separate legal entity that its owners have voluntarily structured as a separate entiity. The operating activity of the corporation is separate and distinct from the investment activity of its owners, and the two activities should be taxed as separate streams of income. (Corporations are free to reorganize under a different legal structure if they want to avoid this so-called "double taxation").

[placeangels]

Corporate income $10,000,000 , taxes to Fed $3,500,000, dividend net to shareholders , taxes to Fed $975,000, total FED taxes paid on income $4,475,000 or a total rate of 44.75%

[WiseTaxPro]

Why don't they just fix the AMT instead of trying to shoehorn another level of BS into the tax code. AMT was supposed to ensure that everyone paid some tax. All its doe is make sure that the middel class pays more each year. Fix the AMT to accomplish the Buffett tax or repeal it.

[Sheilanagig30]

He's the third richest man in the world, and they demand to see his tax records? This should be interesting. It almost seems like Koch vs. Buffet behind the scenes.

The 1% won't starve. The 99% just might. Is it too much to ask for those so-called job-creators to create jobs without the profit for incentive? Maybe they can bring some of the jobs they created in India and China back to the USA. Our country produces less than we consume these days. It's an untenable position. It can't last. Those job-creators took all of their manufacturing jobs out of the country, as well as a lot of the phone jobs. Why? Because it was cheaper to outsource than pay an American to do the job. It's the same reason why we have immigrant labor. The employers don't want to pay Americans a fair wage, and they can get away with paying a foreigner starvation wages instead, whether it's on our soil or abroad. Now they don't want to pay more taxes on their dishonestly gotten gains? Forgive me if I don't feel any pity for them anymore.

[MekhongKurt]

muran04, thanks for the link. While I was reading this story (the one here), I kept thinking that I remembered he had shown his taxes already. I also think he has said that yes, some significant portion of his income is in the form of capital gains.

Of course, Senator Cornyn -- who is one of my Senators -- has a duty beyond other Republican members of congress in that he formally leads the effort to see that current Republicans retain their seats and to help Republican challengers of current Democrat office-holders win their elections. Besides, his comment fits in with what has become the GOP's sole strategy: search-and-destroy, period, to get power, at all costs -- even if the cost includes the detriment of the nation.

And this is from someone who over the past four decades has voted for Republican candidates and causes some 70-80% of the time. But that was before the capturing of the GOP by the Tea Party.

[MekhongKurt]

muran04, thanks for the link. While I was reading this story (the one here), I kept thinking that I remembered he had shown his taxes already. I also think he has said that yes, some significant portion of his income is in the form of capital gains.

Of course, Senator Cornyn -- who is one of my Senators -- has a duty beyond other Republican members of congress in that he formally leads the effort to see that current Republicans retain their seats and to help Republican challengers of current Democrat office-holders win their elections. Besides, his comment fits in with what has become the GOP's sole strategy: search-and-destroy, period, to get power, at all costs -- even if the cost includes the detriment of the nation.

And this is from someone who over the past four decades has voted for Republican candidates and causes some 70-80% of the time. But that was before the capturing of the GOP by the Tea Party.