Billionaire investor Warren Buffett has revived his calls for increased taxes on the wealthy in the op-ed pages of The New York Times.
Warren Buffett
In a new op-ed that appeared Sunday entitled, “A Minimum Tax for the Wealthy,” Buffett follows up on an earlier editorial, “Stop Coddling the Super-Rich,” which appeared in August 2011. Buffett suggested that the super-rich should not be paying lower tax rates than their employees, which prompted President Obama to propose the so-called Buffett Rule (see Buffett Says Tax Code is 'Coddling the Super-Rich').
In his latest editorial, Buffett proposes a minimum tax rate on the ultrarich. He noted that the taxes paid by the 400 people with the highest incomes in the U.S. averaged only 19.9 percent of their adjusted gross income in 2009, down from 26.4 percent in 1992. More than a quarter of them paid less than 15 percent in combined federal income and payroll taxes, he added, while some of them paid no taxes at all.
“This outrage points to the necessity for more than a simple revision in upper-end tax rates, though that’s the place to start,” Buffett wrote.
He said he supports President Obama’s proposal to eliminate the Bush tax cuts for high-income taxpayers, although he added that he prefers a cutoff point above $250,000, perhaps $500,000.
“Additionally, we need Congress, right now, to enact a minimum tax on high incomes,” Buffett wrote. “I would suggest 30 percent of taxable income between $1 million and $10 million, and 35 percent on amounts above that. A plain and simple rule like that will block the efforts of lobbyists, lawyers and contribution-hungry legislators to keep the ultrarich paying rates well below those incurred by people with income just a tiny fraction of ours. Only a minimum tax on very high incomes will prevent the stated tax rate from being eviscerated by these warriors for the wealthy.”
Buffett added that such changes should not be delayed by efforts to reform the Tax Code and said he was in favor of eliminating the carried interest tax break that enables “income from labor to be magically converted into capital gains.”
“And it’s sickening that a Cayman Islands mail drop can be central to tax maneuvering by wealthy individuals and corporations,” Buffett added. “But the reform of such complexities should not promote delay in our correcting simple and expensive inequities. We can’t let those who want to protect the privileged get away with insisting that we do nothing until we can do everything.”
7 Comments
What a hypocrit. What he should propose is a "wealth tax" on people having more than (say) $250 million. I propose a starting rate of 5%. At that rate he should have enough for the rest of his life and no complaints.
Posted by: TaxLadyToo | November 28, 2012 11:58 PM
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I believe I disagree with the previous comments. I've maintained for years that the current AMT should be (or have been all along) indexed for inflation as the regular tax components have been. This would be similar to what Mr. Buffett proposes. It's ridiculous that in my current situation (less than $100K AGI for the year), I'm likely to pay an additional $2,000 in AMT unless the patch is put in place again. AMT was intended to hit the top 1/2% or so of taxpayers - not the middle class.
Posted by: Maggie D | November 28, 2012 11:30 AM
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Based on 3 of the 4 comments so far, let's eliminate ALL taxes. Why beat around the bush. Want a military, volunteer payments. And print lots of new money, giving to all, so all can achieve their guaranteed American dream of being a multi-millionaire/ billionaire.
Posted by: tego@verizon.net | November 27, 2012 5:16 PM
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Cut spending. Cut spending. Cut spending. Make everyone pay some tax of some sort, then talk about raising taxes. Until you cut spending to the bone, I would not support a tax increae on anyone except those who are proposing tax increases.
Posted by: gary d | November 27, 2012 12:31 PM
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Buffet should let his accountant take a look at the correctness of what he is saying. The statement that there are "super rich" who pay no taxes at all seems much to general a statement. If it is indeed true, then the circumstances need to be examined. I would also like to know how he in a position to judge others tax situations, unless he has illegally been made privy to the details behind the taxes paid by others. Also, 19.9% of a big number is still a lot of money. Why doesn't he and the Dems consider the possibility that it is overspending and other wasteful spending that is more to blame than revenues collected.
Posted by: mcameron@ddccpa.com | November 27, 2012 12:28 PM
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Any time Warren thinks he's not paying his share, he can write a check. But, he shouldn't think he can write checks on other people's accounts!
What WB is really doing is preventing others from attaining wealth under the rules he used to to accumulate his wealth! And no one should listen to him until he puts his money where he puts his mouth! Pony up Warren. Recalculate your taxes based on your proposal and send the Treasury a check! Then we'll know that you really BELIEVE what you are saying, be an example. And just to prove you really believe your rhetoric go back a few years. After all, you can afford it!
Posted by: SullivanAcctg | November 27, 2012 10:41 AM
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It would be a good idea to raise capital gains taxes to 25% from today's 15% and close loopholes for that type of income. Typical returns on capital gains investments far outweigh the tax impact.
Posted by: JAscher | November 27, 2012 8:08 AM
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