Warren Buffett calls for a minimum tax on the wealthy

Reuters ^ | Nov 26, 2012 | Ben Berkowitz

[LucianOfSamasota]

In a New York Times editorial printed on Monday, Buffett suggested Congress move immediately to implement minimum taxes of 30 percent on incomes of $1 million to $10 million and 35 percent above that.

"A plain and simple rule like that will block the efforts of lobbyists, lawyers and contribution-hungry legislators to keep the ultra rich paying rates well below those incurred by people with income just a tiny fraction of ours," Buffett wrote.

"Only a minimum tax on very high incomes will prevent the stated tax rate from being eviscerated by these warriors for the wealthy," he added.

The new push is in keeping with the one he made in the same newspaper in August 2011, in which he decried the "coddling" of the super-rich. He used himself and his secretary as an example, noting that her tax rate was much higher than his even though her income was just a tiny fraction of what he made.

"Warren Buffett's secretary" became a political meme following that editorial, and the said secretary, Debbie Bosanek, was ultimately a guest of President Barack Obama at this year's State of the Union address.

The 2011 editorial spurred Obama to seek the implementation of what he called the "Buffett Rule," which set a 30 percent tax rate on millionaires. Opponents said it would stifle spending by the job-creating well-to-do, a notion Buffett ridiculed in the new editorial.

[Mikey_1962]

Since 1969, or 43 years.

[Mr. Jeeves]

OK, Warren, how about a 50% annual wealth tax on everyone with assets of over $1 million dollars? And since government knows best, it should be allowed to shoot any wealthy person who objects without a hearing - since their unfair hoarding of wealth is already a deliberate and felonious attempt to starve the masses.

You, Gates, Trump, the Kennedys, John Kerry, the UAW pension funds...step forward and prepare to hand it over. :)

[KarlInOhio]

So, Warren, should insurance benefits be taxed thus eliminating the tax advantage provided by a lot of the companies you own and thus killing their business models? Warren? Could you please speak up over the crickets chirping in the background?

The two big "dodges" are tax free municipal bonds and capital gains. The first is really just a subsidy to the cities and states issuing them. If they weren't tax free then the localities issuing them would have to pay the market rate for borrowing rather than the market rate minus the top tax rate. Those who invest in them would end up netting the same amount.

The second "dodge" is capital gains. The lower rate is a combination of social policy promoting investment over consumption and a half-assed way to adjust for inflation. Personally I would rather have a consumption tax instead of an income tax to eliminate the social engineering push for investment. And if you do keep an income tax, minimize the rates and progressivity and explicitly tax capital gains only above the inflation rate. If you just keep up with inflation then you owe nothing.

[TurboZamboni]

Berkshire Hathaway, the eighth-largest public company in the world according to Forbes, openly admits to still owing taxes for years 2002 through 2004 and 2005 through 2009, according to the New York Post. The company says it expects to "resolve all adjustments proposed by the US Internal Revenue Service" within the next year.

From presidential primary debate on 4/16/08:

Charles Gibson: "...And in each instance, when the rate dropped, revenues from the tax increased. The government took in more money. And in the 1980s, when the tax was increased to 28%, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected"?

Obama: "Well. Charlie, what I've said is that I would look at raising the capital gain tax for purposes of fairness".

[CSM]

Uhh, wouldn’t be a tax CUT for those with incomes in the highest income tax bracket?

[napscoordinator]

How about a 70% tax on Hollywood idiots?

Wouldn’t help much. I say get rid of all deductions. The only thing you can do is put exemptions of children on your employment tax and nobody has to do taxes in April. Everyone just pays what they take from the pay check and that is it. Business owners can do the same thing.

[Dick Vomer]

hmmmm......he sure is a dependable liberal fop....... I’m trying to figure this out... Is there a live boy or a dead girl in his past.

[exit82]

Warren, shut up and just write a big check already!

Such a whiner!

[PMAS]

List of Warren Buffet’s companies, spend accordingly

Acme Brick Company
Applied Underwriters
Ben Bridge Jeweler
Benjamin Moore & Co.
Berkshire Hathaway Group
Berkshire Hathaway Homestate Companies
BoatU.S.
Borsheims Fine Jewelry
Brooks
Buffalo NEWS, Buffalo NY
BNSF
Business Wire
Central States Indemnity Company
Clayton Homes
CORT Business Services
CTB Inc.
Fechheimer Brothers Company
FlightSafety
Forest River
Fruit of the Loom Companies
Garan Incorporated
Gateway Underwriters Agency
GEICO Auto Insurance
General Re
Helzberg Diamonds
H.H. Brown Shoe Group
HomeServices of America
International Dairy Queen, Inc.
Iscar Metalworking Companies
Johns Manville
Jordan’s Furniture
Justin Brands
Larson-Juhl
Lubrizol Corporation
Marmon Holdings, Inc.
McLane Company
Medical Protective
MidAmerican Energy Holdings Company
MiTek Inc.
National Indemnity Company
Nebraska Furniture Mart
NetJets®
Omaha World-Herald
The Pampered Chef®
Precision Steel Warehouse, Inc.
RC Willey Home Furnishings
Richline Group
Scott Fetzer Companies
See’s Candies
Shaw Industries
Star Furniture
TTI, Inc.
United States Liability Insurance Group
XTRA Corporation

[TurboZamboni]

[DustyMoment]

I thought that the wealthy were already paying the minimum that their accountants can get away with!!

[Ohioan]

Buffett has made his money, buying up well run businesses around the world. More power to him in that. But what his expertise in acquiring the well-run business is not, is a true understanding of why & how, the American States throve as they did between the Constitutional ratification in 1789 and the progressive income tax, after 1913.

The growth, which by 1913 made us both the richest nation on earth and by far, the richest per capita--and a Federation where up until that time--no longer the case--every ethnic group who ever came here, did better than their ancestral cousins in their lands of origin; that miracle was aided in large measure by freedom from a tax burden, we now take for granted.

Article I, Section 9, of the Constitution forbids any direct tax on incomes other than a per capita tax--that is one where every citizen pays the same dollar amount.

Buffett has been buying up the genius of others, but he has no clue as to what brings out the best in a population. It is not redistribution of the fruits of anyone's labor.

See, also, Egalitarian/Collectivism Sabotages Human Potential.

William Flax

[Noob1999]

I call for a minimum tax on everyone that lives in the US.

No more 47% that pay no income taxes. Tax everyone, even if it's the equivalent of a pack of cigarettes, or a six pack.

Then, let the Bush tax cuts expire, as they were heavily skewed to a larger percentage of tax reduction on the lower income earners, than on the wealthy.

At the same time slash the duplicate spending, the wasted foreign aid, the ill planned Obamacare, the handouts and freebies, the bloated federal bureaucracy, our military housed around the world in former hot-spots, bloated weapons systems kept alive because someone influential, lives in a particular district.

Get this budget under control before we all sink!

[TexasTransplant]

Why don’t they just come out and say it ... “ IF you are not on Welfare Send us your Money”

TT

[Tzimisce]

Warren Buffet doesn’t pay income taxes. He doesn’t work.

[TurboZamboni]

Make up Business cards with the Gift Contribution to the US government info and keep them in your wallet - anytime someone near you starts to b!+@ing that they should be taxed more, hand them a card . Fun AND educational!

this on the front of the card:

How do I make a contribution to the U.S. government?
Citizens who wish to make a general donation to the U.S. government may send contributions to a specific account called “Gifts to the United States.” Money deposited into this account is for general use by the federal government and can be available for budget needs. These contributions are considered an unconditional gift to the government.

this on the back of the business card:

Financial gifts can be made by check or money order payable to the United States Treasury and mailed to the address below.
Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782