Buffet: Tax the mega-rich

[75th]

http://www.nytimes.com/2011/08/15/o...h.html?_r=1&smid=tw-nytimesbusiness&seid=auto

Back in the 1980s and 1990s, tax rates for the rich were far higher, and my percentage rate was in the middle of the pack. According to a theory I sometimes hear, I should have thrown a fit and refused to invest because of the elevated tax rates on capital gains and dividends.

I didn’t refuse, nor did others. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.

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.

 

[EarthRider]

good stuff

none of this matters if it isn't part of the Obama plan

 

[calveless wonder]

yes, but there's a difference though between raising rates for someone who makes a 1 million or 10 million a year.....

and someone who makes 250-350k a year

1 mil + a year is definitely rich.

250-350k is upper middle class, and if you have a family and are the only one working, in a high cost of living area that isn't really a great deal of money. those are the people getting fucked

 

[75th]

yes, but there's a difference though between raising rates for someone who makes a 1 million or 10 million a year.....

and someone who makes 250-350k a year

1 mil + a year is definitely rich.

250-350k is upper middle class, and if you have a family and are the only one working, in a high cost of living area that isn't really a great deal of money. those are the people getting fucked

Indeed.

Many plans thrown around over the past year or two have said lower taxes for everybody (down to the mid-20% range at its highest) but create a new tax bracket for $1 million and $10 million.

Makes sense. Naturally it was shot down by people who would prefer things keep going down the road they are going.

 

[EnderJE]

yes, but there's a difference though between raising rates for someone who makes a 1 million or 10 million a year.....

and someone who makes 250-350k a year

1 mil + a year is definitely rich.

250-350k is upper middle class, and if you have a family and are the only one working, in a high cost of living area that isn't really a great deal of money. those are the people getting fucked

It's a matter of perspective. I think that 250k+ is rich. That said, I don't think that they should be taxed at the same rate as someone earning 10mm.

 

[digimon7068]

maybe we should just ban the mega-rich and they'll give all their riches away...like puddz is doing

 

[75th]

maybe we should just ban the mega-rich and they'll give all their riches away...like puddz is doing

Too soon.

 

[miplank]

Did this article come about from a sushi dinner?

 

[calveless wonder]

It's a matter of perspective. I think that 250k+ is rich. That said, I don't think that they should be taxed at the same rate as someone earning 10mm.

that's because you're poor

 

[digimon7068]

that's because you're poor

FYI...annual household income of $250k puts you in the top 1% in the u.s...you have a skewed sense of reality.