Buffett Tells ABC Rich Americans Should Be Paying `a Lot' More in Taxes

[cory777]

Source: Bloomberg

Billionaire Warren Buffett said that rich people should pay more in taxes and that Bush-era tax cuts for top earners should be allowed to expire at the end of December.

“If anything, taxes for the lower and middle class and maybe even the upper middle class should even probably be cut further,” Buffett said in an interview with ABC’s “This Week With Christiane Amanpour” that is scheduled to air on Nov. 28. “But I think that people at the high end -- people like myself -- should be paying a lot more in taxes. We have it better than we’ve ever had it.”

House Speaker Nancy Pelosi plans to take up President Barack Obama’s plan to extend some of the tax cuts enacted under President George W. Bush when the House returns after Thanksgiving. The legislation would retain lower tax rates and increased credits that apply only to the first $250,000 of a married couple’s gross income or $200,000 of a single person’s.

Unless Congress acts, marginal income tax rates will rise across the board, tax credits that benefit families will be slashed, and tax rates on capital gains and dividends will increase. In addition, a federal tax on estates worth more than $1 million will be resurrected after expiring for 2010.

Read more: http://www.bloomberg.com/news/2010-11-21/warren-buffett-tells-abc-rich-people-should-pay-more-in-taxes.html

---

Uncensored Activist News http://activistnews.blogspot.com/

[pleah]

1. K&R

[Overseas]

2. K&R. And here again is his statement on the class war

Mr. Buffett compiled a data sheet of the men and women who work in his office. He had each of them make a fraction; the numerator was how much they paid in federal income tax and in payroll taxes for Social Security and Medicare, and the denominator was their taxable income. The people in his office were mostly secretaries and clerks, though not all.

It turned out that Mr. Buffett, with immense income from dividends and capital gains, paid far, far less as a fraction of his income than the secretaries or the clerks or anyone else in his office. Further, in conversation it came up that Mr. Buffett doesn’t use any tax planning at all. He just pays as the Internal Revenue Code requires. “How can this be fair?” he asked of how little he pays relative to his employees. “How can this be right?”

Even though I agreed with him, I warned that whenever someone tried to raise the issue, he or she was accused of fomenting class warfare.

“There’s class warfare, all right,” Mr. Buffett said, “but it’s my class, the rich class, that’s making war, and we’re winning.”

http://www.nytimes.com/2006/11/26/business/yourmoney/26every.html

[Beartracks]

10. +1000 n/t

[CBHagman]

30. I remember he brought this up in a PBS appearance.

Buffett was doing some sort of Q&A with an audience when a young man got up and eagerly asked his opinion on introducing a flat tax...and without the least hesitation Buffett shot the idea down, observing that he was paying a lower tax rate than his own secretary.

I'm glad that he's speaking up just now, though frankly, with the GOP rhetoric getting so much attention, it's important for anyone who supports progressive taxation to speak out.

[Enthusiast]

36. It's all we hear, GOP rhetoric.

I mean the TV is stuck on stupid or something.

[Overseas]

45. I agree and hope they do speak up. //nt

[groundloop]

3. His friends at the country club are gonna' be PISSED at him

[CatholicEdHead]

5. They probably expect it out of him by now

It is not the first time he has said something like this.

[blondeatlast]

48. He's really not the country club type. However, his Berkshire Hathaway partner

Charlie Munger, is pretty much a contemptible greedhead.

(I'm a BH class B shareholder).

[Turbineguy]

4. Mr. Buffett has a better grasp of economics than most.

Certainly better than Reagan or Bush.

Buffett invests in actual wealth producing things. As most of the investment money in this country is diverted to derivatives which produce nothing, he is a real investor.

[liberalmike27]

58. Who is more aware of the failings of the economy

Than the poorest, and the richest? Nothing like being on the extreme end to see the problems with having ends, so extreme.

Like I've said, when income is so maldistributed, not only is redistribution not a bad thing to do, it's the only thing to do.

Why feel bad about it? They didn't feel bad when they were twisting the laws to their own accord.

[Coexist]

6. knr

[Hissyspit]

7. Well, Mr. Buffett and I have at least ONE thing in common:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9589607

[Enthusiast]

37. That was a great thread.

I enjoyed it.

[Skink]

8. If anything the midlle class cuts should go further.

this is a man that understands economics. Just returning to Clinton era levels on the top one percent could reduce what the middle class pays.

[ColesCountyDem]

9. He is absolutely correct! N/T

[melm00se]

11. i am willing to bet

that Mr. Buffett won't be firing his tax accountants and tax advisers any time soon.

[SammyWinstonJack]

13. Probably not. nt

[blondeatlast]

49. Read the article--he soesn't have any. nt

[melm00se]

53. i did and maybe the article

at the link has changed but I don't see where he said that he has no tax advisers or accountants.

[Shining Jack]

56. See post #2

"Further, in conversation it came up that Mr. Buffett doesn't use any tax planning at all. He just pays as the Internal Revenue Code requires."

[SkyDaddy7]

12. I Wisn the Buffett Haters around here would...

at least admit the man is a good guy. Mr. Buffett is exactly who we want on our (The Middle Class) side!!

[unkachuck]

17. but why....

....is he telling ABC that he and his rich buds should be paying more taxes?

....he should be telling his filthy rich friends to just pay more taxes....the government won't refuse their money....and he could lead by example....

....no, he knows that no corporate owned US congress is ever going to raise his or his fellow pigs taxes....so he's safe to suggest whatever he wants for political purposes, because he knows it ain't never gonna happen....

[Honeycombe8]

20. You are too uninformed on this subject to be posting on this, apparently.

Read up on Buffet. Then get back to those of us who try to stay informed.

Google tips:

philanthropy
billgatesfoundation.org
Buffet foundation
Buffet philanthropy

And YOU should send in an extra check to the government, before you ask others to do so. You care about Social Security? Those without health care? Send in your check to contribute.

[Name removed]

25. Deleted message

Message removed by moderator. Click here to review the message board rules.

[ProudDad]

26. I wouldn't put Gates in that list

He's single-handedly doing more to destroy public education in this country than all the repukes combined...

As for Buffet, I guess a near death-bed conversion is better than nothing...

philanthropy is an excuse to engage in wholesale theft of the Commons with impunity. Who the fuck elected the rich to decide what "charities" and which people are deserving of help or not...

Google Tips:

Theft of the Commons
Enclosure Movement
Dickensian England
Dominator Hierarchies

to start... :hi:

[Honeycombe8]

68. I disagree. He's singlehandedly doing more to improve public education than anyone else.

Google:

billgatesfoundation.org


As for Buffet, he has ALWAYS been the way he is. Read his biography. Watch the interviews with him on TV (there have been several).

Or...you can continue just to be jealous of those who have achieved more than you have, and call them names and stamp your feet and want them to give it all to you for doing nothing.

Continue to reflexively hate those of a group because of the actions of some of the group. I refuse to do that. That's called bigotry. It's the individuals of a group that count.

[Honeycombe8]

69. I forgot to say...I've already made it my business to know about Gates' philanthropy, espw/education

I don't just spit in the wind at somebody, just because. I already know about his concerns and works with education...and I approve strongly.

Who do YOU think should decide where you should give your money? Me? Okay...I decide that you should give a large charitable contribution to my local animal rescue organization that I support: DFWcockerspaniels.org.

Oh, what...you don't think that someone else besides YOU should decide who YOU should give to? Imagine that!

They are genuinely good (great) people who have made the world a better place. You are uninformed. Best to stay silent until you know your stuff.

[blondeatlast]

50. You don't know Jack about Warren Buffett. It would do you well to read up.

Until then, your opinion is not worth the bandwidth it took to compose it.

[Shining Jack]

57. +1

:thumbsup:

[Honeycombe8]

67. +1. nt

[Fearless]

60. If it's a big PR stunt why would he care what people think of him?

What could this possibly give him?

[Honeycombe8]

70. True. He doesn't care what others think. He DOES care about philanthropy...

the responsibilities of those who have $ to help the world.

But there are always those who will ALWAYS be jealous of those who have more than they do. They will go to their graves being jealous, because there will ALWAYS be someone who has more than someone else.

The irony is...there will ALWAYS be those who have less than you, who hate you for it.

It's all so silly. Just try to earn what you can to live a decent life, don't waste your energy being jealous of others, concentrate on people relationships, and live a good life. Jealousy is an unattractive trait that will eat a person alive. There will always be someone to be jealous of. There will always be someone to hate, if that's what you're looking for.

[unkachuck]

72. it has nothing to do....

....with jealously....most people are perfectly happy where they're at economically, me included....

....however, the economic gap between you, me and the buffer-scum is ridiculously and unnecessarily large....any society that tolerates a disparaging gap that large between their top and bottom economic tiers is hardly democratic and destined for oblivion....

....but feel free to continue to chastise people for pointing out our obvious systemic flaws....sorry, buffer 'cares' first and foremost about, buffer....

[cbdo2007]

14. I hereby formally nominate Billionaire Warren Buffett to the post of U.S. Treasurey Secretary!!

If there's anyone who understands business and finance and the way things work, it's him.

[hamerfan]

16. I second the nomination!

What a great idea.

[blondeatlast]

51. You wouldn't be the first to suggest it. If he could handle the Treasury like

he handled BH, we'd all be in fine shape (confession; I'm a very small, class B BH shareholder and I have NO complaints; I like long term goals).

[sarcasmo]

15. Buffet speaking truth it's to bad the elite will not allow themselves to pay more tax.

[Honeycombe8]

21. Well, it would be happening, if the Dems hadn't lost the last election.

Elections have consequences. Those on the left who were mad at him for not giving them their pony...well, they sure won't get a pony now (unless the Dems have the gumption to get the ponies in their lame duck session). Those on the right who were passionate enough to go vote for their anti-Democratic candidate...they hold half the cards now. And apparently they don't care much about taxes of the rich.

[Name removed]

27. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Name removed]

29. Deleted message

Sub-thread removed by moderator. Click here to review the message board rules.

[Enthusiast]

38. What bullshit! nt

[fascisthunter]

54. that is not true at all

what a weak excuse...

[grahamhgreen]

18. The Greatest Generation had the best tax structure. Return to 70-94% top tax rate.

[Honeycombe8]

22. That's too much, IMO. But at least 40% is called for. They don't even PAY that...

the rate is just a starting point, after which they have loads of deductions.

I think the govt should raise the rate a bit for the very wealthy, and cut out some of those deductions. So the EFFECTIVE rate will be closer to the 40% rate. As it is now, no matter what the rate, the super rich end up paying only pennies, because they have so many deducations and tax shelters.

[ProudDad]

28. Geez, more crap...

Those rich assholes you insist on defending RAKED US ALL through the fucking coals for ALL of the productivity increases over the last FORTY FUCKING YEARS...

We got NONE of the bounty and got longer hours at less secure "jobs" in exchange...

If this were a democracy a CONFISCATORY rate for those making over $250,000 would be in order! I'd suggest 120% up to one million then 200% of anything after that...

NO DEDUCTIONS...

With NO taxes for those making under $40,000 (adjusted up or down for cost of living in each region)...

Along with a 90% inheritance tax on EVERYTHING over $10,000,000

All to go to build up the World's Commons -- no more wars, no more leeches...

Geez, with enablers like so many are in this country, no wonder those fuckers keep bleeding us dry!

[Enthusiast]

39. Plus fucking one!

CONFISCATORY RATE!

[Honeycombe8]

63. Let me 'splain it to you like you're a 4 year old (apparently you don't have many deductions?)

Apparently you don't understand how important deductions are. Read up and learn something:


CURRENT SCENARIO:

Guy earns $100,000.

Tax rate for Guy is 40% ($40,000).

Guy's deductions = $65,000.

Guy's adjusted gross (taxable) income = $35,000.

Guy pays $14,000 in taxes (40% of $35,000, or 14% of total income).

Guy's EFFECTIVE tax rate is 14%.


90% TAX RATE SCENARIO:

Guy earns $100,000.

Guy's deductions = $65,000.

Guy's adjusted gross (taxable) income = $35,000.

Guy pays $31,500 in taxes (90% of $35,000, or 31.5% of total income).

Guy's EFFECTIVE tax rate is 31.5%.


LESSENING DEDUCTIONS SCENARIO:

Guy earns $100,000.

Tax rate for Guy is 40% ($40,000).

Guy's deductions - $15,000.

Guy pays $34,000 (40% of $85,000, or 34% of $100,000 total income).

Guy's EFFECTIVE tax rate is 34%.

[Honeycombe8]

62. I'm not defending anyone. I posted an opinion on the EFFECTIVE tax rate.

Apparently you don't understand how important deductions are. Read up and learn something:


CURRENT SCENARIO:

Guy earns $100,000.

Tax rate for Guy is 40% ($40,000).

Guy's deductions = $65,000.

Guy's adjusted gross (taxable) income = $35,000.

Guy pays $14,000 in taxes (40% of $35,000, or 14% of total income).

Guy's EFFECTIVE tax rate is 14%.


90% TAX RATE SCENARIO:

Guy earns $100,000.

Guy's deductions = $65,000.

Guy's adjusted gross (taxable) income = $35,000.

Guy pays $31,500 in taxes (90% of $35,000, or 31.5% of total income).

Guy's EFFECTIVE tax rate is 31.5%.


LESSENING DEDUCTIONS SCENARIO:

Guy earns $100,000.

Tax rate for Guy is 40% ($40,000).

Guy's deductions - $15,000.

Guy pays $34,000 (40% of $85,000, or 34% of $100,000 total income).

Guy's EFFECTIVE tax rate is 34%.

[joeglow3]

42. You realize taxes paid is a function of TWO numbers (tax rate AND taxable income)

I will see if you can do a little research and see the flaw in your reasoning.

[Honeycombe8]

64. Exactomundo. I think some of the posters don't know much about deductions.

They are THE reason that most mega wealthy don't pay much $ in taxes. THAT'S what needs to be fixed.

Heard on TV last week that Exxon paid ZERO in taxes last year. That's not because their tax rate was ZERO. It's because after the subsidies, deductions, and credits, they ended up not having a taxable income.

[grahamhgreen]

65. Let's just do what they did. Few deductions, High rate.

But if you just increase the rate - you will get more revenue.

A LOT more revenue.

An increase of 4% = 700b in 10 years according to Obama.

An increase of 40% would be 7 trillion.

[Honeycombe8]

66. Not true. You get MORE $ if you reduce the deductions. Read my posts above.

You are forgetting to reduce the "taxable income" amount by the deductions, and the taxes owed by the allowable credits.

Even if a megawealthy person's tax rate was 90%, it's 90% of almost nothing, if the TAXABLE INCOME is low. TAXABLE INCOME is the adjusted income after deductions, and then there are direct tax credits.

That's the real source of how megawealthy get out of paying taxes. It's not so much the rate. Although the rate matters.

I haven't heard Obama talking numbers. That would surprise me...he's not a numbers person, and he's not an economist or tax specialist.

The tax rate should be higher for the wealthy, but it's the deductions that REALLY matter. (and the credits and subsidies)

I've never heard Obama compare increasing the tax rate substantially (to 90%, say) versus decreasing the deductions and tax credits. I don't think he has.

[Historic NY]

19. I totally agree..screw those champagne and caviar dreams.

[Iliyah]

23. The media

will favor Fake news views and call Mr. B a Nazi and he that he wasn't born in America. The US Chamber and the Five Supreme Court Judges have bought America at the cost of hurting middle America, and they don't care.

[humbled_opinion]

24. Although I do agree with the sentiment... the truth....

is quite something else.

Rich people hire costly tax atty's to help them pay less in taxes then they should or could. The IRS has a method for the richest people to pay more if they feel they should but they don't. Rich people hide income overseas and use other loopholes to game the tax system. Even some of the most generous of the rich still write off those massive charity donations and "FREE" giveaways as business expenses.

Next up Corporations turn tax increases and costs incurred from govt regulation into cost increases to consumers, so the middle class loses there.

Banks turn govt regulations costs into consumer cost increases and lower savings interest rates to the middle income savers all the while stuffing their own accounts with massive investments from the very rich.

So in truth the only people that truly pay their taxes are the middleclass, we that can not find a way out, those that make in the area of 50k - 150k and then we too, look for every possible deduction that we can get.

The game is rigged always has been and probably always will be.

In truth the only person in history that actually had the right kind of plan to handle the rich was Seator Huey P. Long, and they murdered him.

[Iliyah]

31. Cali here

the gas prices in Los Angeles are over $3.00. I asked a Arco owner why the prices are so high, he said GREED.

My opinion, b/c they need to pay their high priced attorneys, and pay themselves, and so forth. CUT the rich peoples' taxes!

[ProudDad]

35. It's also because the oil companies

(Bastards they are) are informed and intelligent enough to KNOW that we've passed Peak Oil...

The easy 1/2 of the available oil reserves have been sucked out...

And they've externalized most of the REAL costs of extraction like the fucking $1.2 TRILLION per year USAmerican war machine built mostly to "defend our oil"!!!

Now only the hard 1/2, the uneconomical half of the reserve is left...

So expect prices to increase in the future...

And increase geometrically within 10 - 20 years...

'Cause there ain't no more fucking oil...

So now the oil companies are "diversifying" while they suck up the last of the "economic" petroleum to burn and by burning, will soon render the Earth uninhabitable by humans and other large air-breathers...

But they don't care as long as this quarter's profit projections are met...

Viva Vampire Capitalism! :sarcasm:

[Tuesday Afternoon]

43. +1

[HuckleB]

32. RECOMMEND!!!!!!

[Iliyah]

33. those

who live

[alp227]

34. See? Buffett actually recognizes that other people live in America! n/t

[TBF]

61. He sure does - and he is doing his best to keep capitalism propped up -

as you would expect since he has more than most to lose.

If this country erupts into a civil war, or violence erupts on the street from too many being laid off (Congress not continuing unemployment etc...) it could get pretty bad out there. He figures Obama is not being too effective, so he's trying to help. Pay some more taxes, workers get a few more crumbs, hopefully that will keep people content enough not to resist.

That is truly all this man is doing.

[panzerfaust]

40. Considering that most of the Rich pay NO taxes, he is likely right

[Roy Rolling]

41. there goes

Warren Buffett's seat at the table. Next up: smears from the right on how Buffett "has lost it."

[EmeraldCityGrl]

44. How many millionaires has this man created thru his

Birkshire Hathaway Fund? Every year they converge on Omaha to sing his praises and
celebrate their wealth. I'm willing to believe there isn't one among them that would agree
with him on this one single issue.

It appears at the end of his life Mr. Buffet is re-evaluating a life spent making a lot of very
greedy people rich when there was so much work that need to be done. Buffet lives in the
same relatively humble home he has lived in for decades and there are the foundations he
has established, I think several inspired by the example of the Bill and Linda Gates Foundation.

The most important thing he can do now is, continue to press this message from the rooftop
as we approach a class war those at the very top are only too aware of. Will they comply to
a new tax base or assemble their armies to protect them behind their gated estates? What
wonderful job opportunities for all those soldiers returning home to double digit unemployment.

[FailureToCommunicate]

46. "We have it better than we’ve ever had it.” Thanks, Reagan. Thanks, Bush.

Oh, and how is the book tour going (you war criminal) ?

Disgusting.

[Imajika]

47. Why doesn't he just go ahead and pay more then?

I've always been baffled by this. He is right that the rich/super wealthy should pay a LOT more in taxes. He is right to make this argument and push for more progressive taxation. But why don't the people like Buffett who believe this just pay more. Hell, they can set their own marginal rate and pay whatever extra they want to the government. There is nothing stopping him from sending whatever additional amount he wants to the US treasury, but I am sure when it comes tax time he and his accountants look for every way possible to pay the least they can.

There was just a story of a bunch of millionaires arguing for the Bush tax cuts for the wealthy to expire. This is great, and we need to hear more from them. But how about they get the ball rolling and just pay more. If even 1/3 of the wealthy believe their taxes should be higher, they could make a real impact by just paying extra.

[Uncle Joe]

52. Kicked and recommended.

Thanks for the thread, cory.

[fascisthunter]

55. Well, I hope his Statement is Echoed by more Rich Folk

because right now the majority isn't very fond of them, at least not in my neck of the woods.

[KeyserSoze87]

59. Warren Buffett is right. We need to stop arguing and TAX THE GODDAMN RICH ALREADY.

[Xenotime]

71. Tax all the bastards at a 95-98% rate.