Buffett urges Congress to raise taxes on the rich
Warren Buffett, CEO of Berkshire Hathaway / Nicholas Kamm/AFP/Getty Images
OMAHA, Nebraska Billionaire Warren Buffett is again calling for higher taxes on America's "ultrarich" and he's urging Congress to compromise on spending cuts and tax increases.
Buffett said the current tax system has contributed to the growing gap between rich and poor. He said he supports President Barack Obama's proposal to end the Bush tax cuts for the wealthy, but he'd prefer setting the point where taxes increase at $500,000 income instead of the $250,000 the White House proposed.
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Buffett expressed his views on fiscal policy Monday in an opinion article that appeared in The New York Times (NYT) on the same day Congress returned from the Thanksgiving holiday.
In the article, Buffett mocked the idea that investors would pull back if capital gains taxes increase. Buffett said he's never seen that happen even when capital gains taxes above 25 percent early in his investing career.
"Let's forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if - gasp - capital gains rates and ordinary income rates are increased," Buffett said. "The ultrarich, including me, will forever pursue investment opportunities."
Buffett, who is chairman and CEO of Omaha-based Berkshire Hathaway (BRK.A), has complained for several years that Congress has been coddling the wealthy, and Obama even called one of his tax reform proposals the "Buffett Rule."
Buffett reiterated his call for a minimum tax of 30 percent on income between $1 million and $10 million, and a 35 percent rate for income above that.
He said both Republicans and Democrats will have to make major concessions to deal with the nation's fiscal problems. Congress is trying to address the so-called fiscal cliff of automatic tax increases and spending cuts that could be triggered at the start of the new year.
"All of America is waiting for Congress to offer a realistic and concrete plan for getting back to this fiscally sound path," Buffett said. "Nothing less is acceptable."
Berkshire Hathaway owns more than 80 companies; including insurance, utility, railroad, furniture, jewelry, manufacturing, restaurant and apparel companies. Berkshire's insurance and utility businesses typically account for more than half of his company's net income.
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The primary reason that the rich pay a lower rate than the rest of us is due to the fact that most of their income comes from capital gains which are taxed far too low. The current rate of 15% is the lowest in recent history! And yet super-rich like the Honeywell CEO think it should drop to zero! The audacity of these pampered rich is unbelievable!
When you tax capital gains less than ordinary income, it is the same as saying that making money by owning things is better than labor. That's what capital gains are---making money by lending out money or property. Why should this be considered a better way to earn money than someone like a taxicab driver or factory worker that labors for a living?
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Investing doesn't always make money. Investments can produce a return or evaporate into thin air and you lose everything. There is substantial risk of loss in investing - either in stocks or in opening a business or buying property and watching it appreciate. Investment is also one of the primary economic drivers in this country. Without it we cannot survive.
Thus, the government incentivizes investment by taxing it less to offset the risk of loss. It's pretty simple really. Your lack of understanding of this is common amongst the lower classes and those of limited education. They see those who are more successful than they are and don't understand what those people do with their money or why. The have-nots will eternally be envious of the haves.
When you tax capital gains less than ordinary income, it is the same as saying that making money by owning things is better than labor. That's what capital gains are---making money by lending out money or property. Why should this be considered a better way to earn money than someone like a taxicab driver or factory worker that labors for a living?
http://www.apnotes.net/ch23.html
Below are links. Please make my check for $1,000 out to the US treasury and mail it to them. I guess you got me on the missing statement of federal income taxes but that is where most of the $ for the Federal government is obtained.
I am sure they will spend it wisely. I have no problem with taxes. First you have to realize the super rich already do pay a higher % than us. Remember there is always someone who makes less $ than us who could easily say we should pay more. Everyone comments on the 1% but why can't we agree there needs to be cuts. ( •The top 1 percent of taxpayers paid 33.7 percent of all individual income taxes in 2002. This group of taxpayers has paid more than 30 percent of individual income taxes since 1995. Moreover, since 1990 this group's tax share has grown faster than their income share)
http://taxpolicycenter.org/numbers/displayatab.cfm?DocID=3505
Source: U.S. Treasury, Office of Tax Analysis
http://usgovinfo.about.com/od/incometaxandtheirs/a/whopaysmost.htm
There is also the disturbing inequity in the fact that taxes actually decrease on AGI over $5 million.
If you really want to see what is going on, try this link:
http://taxfoundation.org/article/summary-latest-federal-individual-income-tax-data-0
He says raise rates on anyone making $500,000 and up...really....really!
Most families don't make $75,000 with both the spouses working. If you make a combined salary up to $100,000 a year you are doing well and very well can afford to pay more in taxes. I also believe that anyone earning an income should have to pay at least 1% because you benefit...minimal but you benefit from those taxes.
Get rid of the "Child Tax Credit". You had kids then you should be required to support them ladies and gentlemen. Get kids off of social security...they don't belong in that program. Cut, Cap, Balance and increase revenue and pay the deficit off and never have one again.
Bottom line is Warren Buffet is no different than Mitt Romney in that he doesn't know how much the working class make throughout the U.S.. Maybe we should just have a law that says once you have reached a $500 million dollars all your additional funds regardless of where their coming from go to the people since they did most the work for you rich folk.
His wealth comes at a huge immeasurable Cost to Families
A cost that manifests itself in so many ways it would take years to describe
Does he care about their plight?
He's getting richer isn't he ?
the little guy thinks anything above 7% is good , well the real rich seek much more than 20% in the world markets , and that is a guy that is very careful with risk .
Wrong! The CG tax only applies when profit is taken. A high CG tax encourages monies to remain in the market to avoid taking a tax hit. So long as the cash stays in the market and is re-invested is will earn or lose solely on market performance.