Warren Buffett: In tax war, rich people have "nuclear bomb"

Updated: 11:56 a.m. ET

Following a cameo in President Obama's State of the Union speech Tuesday, Debbie Bosanek and her boss, Warren Buffett, continued their push to overhaul the nation's tax code in an interview with ABC News.

Bosanek, billionaire investor Buffett's longtime secretary, has taken on a somewhat symbolic role in her boss's plight to even out a tax code he believes is unjust. In an op-ed last year, Buffett argued his secretary shouldn't be paying a higher tax rate than he, just because much of his income is in capital gains and investments.

"I believe this should be a defining issue," Buffett told ABC, of changing the nation's tax code. "Debbie works just as hard as I do and she pays twice the rate I pay. I think that's outrageous. "

According to Buffett, his "entire office" pays a higher tax rate - "between 33 and 41 percent in payroll and income taxes" -- than he does.

Bosanek, who said her rate was "average" relative to those in her office, said she hadn't necessary expected to be singled out in this way.

"Everybody in our office is paying a higher tax rate than Warren, so it just didn't dawn on me that I would be singled out," she said. Still, she said she "didn't think it was right" that her boss was paying a smaller fraction of his income in taxes than were his employees.

The issue has come under the microscope in recent days in light of Mitt Romney's having released his tax returns, showing that he paid less than a 15 rate on more than $40 million in acquired wealth over the past two years.

"I don't blame Governor Romney for paying the tax rate he paid," Buffett said. "I blame the U.S. Congress."

"People lobby to keep their estate taxes down. They lobby to keep their capital gains taxes down," Buffett said. "So, if this is a war - I wouldn't call it a war, I'd call it a struggle - but, if this is a war, my side has had the nuclear bomb."

He added: "We've got K-Street, we've got lobbyists, we've got money on our side in terms of lobbyists. Deb does not have a lobbyist. She doesn't have anybody remotely that's representing her. But, believe me, plenty of rich families have lobbyists that are working like crazy to get rid of estate taxes, lower capital gain taxes, whatever it may be. So, if there has been a war going on, the war has been waged by the people who are very well to do who are trying to shift the burden onto people like that and away from themselves."

Obama details "Buffett Rule," says millionaires should pay at least 30 percent tax rate

[echosierra2003]

Could someone from the esteemed Fourth Estate please ask Mr. Buffett or his secretary to clarify if his protracted legal battle with the IRS has kept his company Berkshire Hathaway from paying it's federal income tax obligations? Sources like the Huffington Post indicate Mr. Buffett's company hasn't paid since 2002.

[AnotherLevyRat]

Mr. Buffett, you can pay as much as you want. Quit taking all those deductions.

[MickeyFreakinDougal]

Wow, Americans' ignorance never ceases to amaze me. Guess what. There is only one federal tax code, not two. For earned income, Warren Buffett pays exactly the same tax rates, based on the federal tax tables as his secretary does. And Buffett's secretary pays exactly the same rate on her capital gains as he does.

Either Mr. Obama is lying or too ignorant to understand how wrong his statements about this are. Neither way makes him anything but a bad president.

[Zann-Zel]

The point is those who WORK pay a higher percentage than those who choose to invest.

We PAY for the right to work.
We PAY because we are not born rich.
We PAY the rich to employ us.

Are you getting it yet?

[KlatuBerataNicto]

I dont think you understand the intentional use of offshore tax shelters (which is borderline tax evasion), capital gains, or even the fact that average income individuals do not have lobbyists to tug the sleeves of politicians to lower tax rates for the highest earners. The fact is, through a combination of charitable donations, hidden accounts out of country, and lax tax rates (under the Bush tax cuts), most multi-millionaires like Mr.Romney for example, pay a tax rate of approximately 15%, while the majority of middle class workers are taxed about 30-35% on their regular income.

[Groucho60]

To make things fair, let's get rid of the capital gains tax rate altogether and tax all income using the wage earners income tax rate. It doesn't matter how you make your money (investments or wages), income of all types should be taxed the same. Then we could lower the income tax rate because all are paying under the same tax table and paying their fair share. This isn't class ware fare this is common sense. For instance, why should a wage earner making a $100,000 pay a 25% federal tax rate and the investor making $100,000 pay only 15%.

[cdraper5]

In response to Verycold.

They may not know how wealth is created but I'm sure they know they'd like a cost of living increase and possibly a raise to go along with it. The private sector will not be the ones allocating money for the next big public works projects that we so desparately need, i.e. power grid upgrades, tranportation etc.
One of the problems that we have as a country right now is that we take for granted a lot of these creature comforts. The Interstates weren't here before 1940. The sewer systems and electrical grids weren't everywhere. These things were bulit because of the Federal Government and the taxes that were collected. Federal Summer Jobs Programs for students were the norm. They helped train many of the people that are millionares and billionares today. Now those same people could care less about the future of this country as a whole, only that they have their needs met. Trickle Down Economics does not work. If the rich payback some of the monies they've reaped over the last thiry plus years, this country could be on it's way to another leap in its progress toward the future that includes prosperity for us all.

[realtimecoffee]

No matter how much they pay we will spend more and borrow more to support wars and the safety plantations. Our problems all stem from too much governmnet collateralizing our future for today's cake.

[Zann-Zel]

I know so many of you think we need to go back to being Independent again! Each one of us needs to do everything on our own and never depend on our government! Great sounding words. But this is NOT 1776 anymore! When there were miles and miles of undeveloped land, yes, a person or a family could go off on their own and support themselves with the help of No One else! But we can't do that anymore. ALL of us use the roads, all of us use the police departments, the water departments, the school systems, the electric companies. Those are all things that are pretty much impossible to handle all on your own today. Unless you want to live in a tent on top of a mountain, all alone for the rest of your life, you need to accept that things HAVE changed! And all these things we take for granted today cost money - tax money.

[taxpayingvoter]

Have the people of this country forgoten one thing. Those peopel can not be rich without us happily giving our hard earned money to them. We can stop this but as a country we need to get out collective heads out of our aft oriface.
Rich people do nothing but collect money, they collect it from people buying their garbage or their services. if we do not want them to be rich we need to get out and do for ourselves. If we stop producing, they stop selling and the money does not go to their pockets.
We the People have the power, we just need to do it and stop idolizing rich people for being the theives they are.

[realtimecoffee]

You stop producing, they don't make money or pay taxes, you starve. Good plan.

[luadda22]

So you advocate that the people quit buying goods and services?? Then what happens? The companies go bankrupt and lay off the workers. Granted the "evil" rich won't receive your money any more, but you are therefore in favor of causing unemployment. You just don't care about other people, but just want to feed your own envy and hate. Did I get that right??

[nancy_naive]

Warren is right, but history has shown, time and time again, the when things turn really ugly, the rich lose.

Guillotine -- The best 99% solution yet.

[realtimecoffee]

lol, the rich will be happy in the Caymans and take all their money with them. Once you idiots burn their homes and loot Walmart the food will be gone and you will be eating your children. Mmm, yeah, life is good.

[realtimecoffee]

Are you telling me his long time secretary who makes hundreds of thousands a year never bought any Berkshire Hathaway? Poor Deb, she's not Joe sixpack, she is the 1%. This whole fraud stinks.

[bob_reed]

Maybe you're not aware of just how much even one share of Berkshire Hathaway costs? The share price the last time I looked was $120,000 per share. Yes, that is the cost of just one share. How many secretaries, truck drivers, postal workers or factory people can afford that? The only fraud being perpetrated here is the one being run on us by our "representatives" in Congress who are protecting their rich benefactors at our expense.

[realtimecoffee]

I first looked at them in the eighties. It was 3000 then. Even at today's prices she could afford it. She makes 250K+ a year, not some poor underpaid victim. And the rest of us CAN afford a few shares in a mutual fund here and there. That's how it starts, a little bit every month, reinvest the divs, accumulate wealth, take care of yourself, your family and your friends. Or be a government junkie and settle for the safety plantation. It's all about personal choices.

[daffy64]

In the end, a billionaire who's taxed at 50% is still a wealthy person. One would think that anyone who was blessed enough by the good Lord to have that much of God's resources at their disposal wouldn't complain so loudly about giving so much back to the country that made it possible.

I don't complain about paying taxes. And if I were a super-person I certainly wouldn't complain about a higher tax rate. But I guess the odds of me achieving "success" (being a millionaire: said with sarcasm) are low EXACTLY BECAUSE I'm not in love with money. I'm happy with what I've got.

Thanks God.

[luadda22]

daffy, I really doubt that "God" gave them their money. It's easy to say that if you were a "millionaire" you would be "happy" to pay more, when you don't have that million (and sounds like you don't have the drive or ambition to obtain it either). But remember, your "God" hates liars too.

[daffy64]

God bless Mr. Buffet. It's not often we see a millionaire who's God is not money.

[daffy64]

by Mortarman291SG January 26, 2012 2:35 PM EST
What is the flavor of koolaid you are drinking?

-

Jesus', my friend.

[IndependentinNH]

Warren Buffet is amazing.