Warren Buffet's New York Times op-ed: Government should stop coddling the mega-rich
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Warren Buffet (pictured above with wife Astrid) started out simple businessman from Nebraska and has become the third richest person in the world largely through his investment decisions. He wrote an opinion piece for the New York Times Monday (Aug. 15) wherein he tells the government to stop coddling the super-rich like himself.Buffet writes:
Our leaders have asked for "shared sacrifice." But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as "carried interest," thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they'd been long-term investors.
These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It's nice to have friends in high places.
Last year my federal tax bill - the income tax I paid, as well as payroll taxes paid by me and on my behalf - was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income - and that's actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.
If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine - most likely by a lot.
...
Twelve members of Congress will soon take on the crucial job of rearranging our country's finances. They've been instructed to devise a plan that reduces the 10-year deficit by at least $1.5 trillion. It's vital, however, that they achieve far more than that. Americans are rapidly losing faith in the ability of Congress to deal with our country's fiscal problems. Only action that is immediate, real and very substantial will prevent that doubt from morphing into hopelessness. That feeling can create its own reality.
Job one for the 12 is to pare down some future promises that even a rich America can't fulfill. Big money must be saved here. The 12 should then turn to the issue of revenues. I would leave rates for 99.7 percent of taxpayers unchanged and continue the current 2-percentage-point reduction in the employee contribution to the payroll tax. This cut helps the poor and the middle class, who need every break they can get.
But for those making more than $1 million - there were 236,883 such households in 2009 - I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more - there were 8,274 in 2009 - I would suggest an additional increase in rate.
My friends and I have been coddled long enough by a billionaire-friendly Congress. It's time for our government to get serious about shared sacrifice.
You can read the full op-ed piece here.
Warren Buffet is one cool dude. His background and how he became rich is already admirable. What's even more laudable is his continued advocacy for charitable work and giving back to society. He and the Gates have been my heros for their insistence on donation and helping others with their money. Too bad not many more mega rich are like that. That said, Mr. Buffet's reasonable op-ed makes me wonder why our Congress, who you'd think are intelligent or at least competent individuals, can get over themselves & the 'politics' of it all and just be reasonable - DO YOUR JOBS, CONGRESS!!! Thanks for sharing Mr. Buffet's op-ed.
Set a precident, send in 5 billion dollars today; that won't hurt your worth and will fix alot of problems! Fact is you could tax the top 1% at 100% of income and the deficit still wouldn't be zero. And 40% or more of the country pays 0% every year. Or tax GE, they pay 0%...
I'll start talking about Gates and Buffet as heroes once they start donating REAL amounts of money. MILLIONS to them is like 10's to me. They certainly could change the world if they decided to give away 90% of their income. I'm sure they could live on 1 Million a year. Now I'm not saying they should do this, but I'm not going to be like others on here and anoint them saints because they give away a few millions.
Notice also, he said they need to cut spending FIRST!
Obama is getting the blame for what Congress did.Clinton got rid of the deficit and after he left office Congress took away line item veto power from the office of the President. For eight years they ran the country into the hole with pork projects that inflated the yearly budgets.
u heard him Oprah!!!
Try ten years Bill; and from 2007-2010 were controlled by a democrat Congress. Both parties are full of spend first, worry about tomorrow later, selfish people.
Why don't some of you do research before making comments like "donate more money!" or "send in your money!". First off, Gates & Buffet didn't make their money and become so successful by throwing away money willy-nilly to any ole charity or people.
Send in the money where? To Congress? What, you want them to write a massive multi-million dollar check & hope the right department or people cash it in the government? Get real!
Mr. Buffet's op-ed was simply stating his opinions on the practical & actually business-savvy sense of how to reduce the deficit. That he is willing to say "sure, tax me more" is pretty decent of him IMHO, simply because, face it...are YOU willing to tell the government to tax you more? Get over yourself & your demands for people to give up THEIR money!
And secondly..."why not donate"? Really? Uh, they ARE. Why don't you do some google their names or something to at least KNOW what you're commenting about. I'll get you started. Google "The Giving Pledge". I actually follow business news and read several papers (WSJ, NYT, even CNN), and you can easily have an inkling about these men, as well as the debt crisis & looming tax talk.
If he doesn't want his money he can send it to me.
Kap read this article.
http://abcnews.go.com/GMA/MellodyHobson/story?id=2118501&page=1
Buffet will donate 37 Billion dollars or 85 % of his fortune to the Gates Charity alone.
Total he is donating 99% of his wealth.
http://www.ibtimes.com/articles/32449/20100703/warren-buffett-donations-philanthropy-investment-guru-omaha.htm
So tell me he's donating insignificant amounts of money...
Not sure what tax advisors he has but most people in the >$1M income bracket pay out nearly 45% of every earned dollar in some form of tax not counting state sales tax.