I should pay more tax, says US billionaire Warren Buffett

[babylonsister]

My sister saw this interview; he had his secretary with him and compared their financial 'straits'. Sis was impressed.

http://www.informationclearinghouse.info/article18651.htm

I should pay more tax, says US billionaire Warren Buffett

By Andrew Clark in New York

11/01/07 "The Guardian" -- -- Warren Buffett, the famous investor known as the "Sage of Omaha", has complained that he pays a lower rate of tax than any of his staff - including his receptionist. Mr Buffett, who is worth an estimated $52bn (£25bn), said: "The taxation system has tilted towards the rich and away from the middle class in the last 10 years. It's dramatic; I don't think it's appreciated and I think it should be addressed."

During an interview with NBC television, Mr Buffett brandished an informal survey of 15 of his 18 office staff at his Berkshire Hathaway empire. The billionaire said he was paying 17.7% payroll and income tax, compared with an average in the office of 32.9%.
"There wasn't anyone in the office, from the receptionist up, who paid as low a tax rate and I have no tax planning; I don't have an accountant or use tax shelters. I just follow what the US Congress tells me to do," he said.

Mr Buffett also took a pot shot at hedge fund managers. He said: "Hedge fund operators have spent a record amount lobbying in the last few months - they give money to the political campaigns. Who represents the cleaning lady?"

His intervention comes amid an increasingly rancorous debate on Capitol Hill about tax. Shortly after taking office, President Bush pushed through $2 trillion in temporary tax cuts, including sharp reductions for high-earners. These expire at the end of 2010 and the White House wants to renew them.

A leading Democrat, the Harlem congressman Charlie Rangel, published alternative plans this week that would impose a 4% surcharge on people earning more than $200,000 a year, while delivering tax relief to 90 million working families.

Republicans say the net effect would be a $2 trillion tax increase that would hurt small businesses and farmers. Meanwhile, Mr Buffett's remarks drew a robust response from the US Chamber of Commerce, which said the top 1% of US earners accounted for 39% of tax revenue - and the highest earning 25% of the population delivered 86% of the tax-take.

The chamber's chief economist, Martin Regalia, said: "Mr Buffett has made an awful lot of money and if he wants to pay more taxes, I think that's fine. But I think he should get his facts straight."

He added: "There's no question in my mind: if you were to impose tax increases, you would see the US go into a recession."

© Guardian News and Media Limited 2007

[Tandalayo_Scheisskopf]

1. Memo to Marty R.:

We are already in a recession, you jerkoff. For a lot of us, it's been going on since 2001.

[Deja Q]

2. What small businesses? They seem to sell everything to the large ones.

Isn't it a buyer's market?

To become a small business, entrepreneurial entity, et cetera, requires so much red tape -- it is ridiculous. Never mind treating the business owner twice over as a taxable entity! (The owner as both business and employee. While technically correct, it is unethical and the same should apply to any business, large or small. The double-dipping isn't right.)

If you ask me, from observation, now isn't the best time to become a small biz because everything in the marketplace is showing signs of universal contraction; squeezing people out.

Maybe it's a good time for people to become consultants, but that's kinda the same thing too. And people don't get rich from being an artisan. People get rich from finding artisans.

I might be wrong, of course.

[Earth_First]

3. Pssst...

If I had a job making a 1/10th of your yearly salary, I'd gladly pay 50% taxes on ALL OF IT.

[Skink]

4. For people making 20,000 or less a year Federal taxes have gone up...

Since Bush took office. Sales taxes have risen in many places too.

[bbinacan]

5. He needs to put his money where

his mouth is. Cut a BIG check to the Treasury and publicize the hell out of it. Lead by example or shut up. Nothing could be more powerful.

[Progressive_In_NC]

7. he gave all of his personal fortune to the Gates Foundation thus sidestepping any tax implications

He has ducked paying taxes on almost every dime of it.


Go figure.

[babylonsister]

8. That sounds damned generous to me. nt

[JerseygirlCT]

10. Yes, and the Gates Foundation will do all sorts of dreadful things

with it like help fight illness and poverty in Africa and aid education efforts in the US.

Would have been much better in the hands of the Treasury! Aren't there wars we could be starting somewhere with all that?

[Progressive_In_NC]

13. Oh no doubt, i just thinks it's funny he wants to pay more taxes

and then performs an act that gets him out of almost all of them. I'm not knocking the guy, his money will be put to good use world-wide. But it is kind of Ironic, if you ask me.

[JerseygirlCT]

16. The act that got him out of taxes as you say, also got him out of

money.

It's a trade-off available to anyone who wishes to do the same.

He's speaking up, pretty loudly, about the problem. That's more than the rest of his extra-wealthy cohorts are doing. Bill Gates' dad has also spoken about the problem, IIRC. They'd see it changed if they could. And he says he doesn't use any special accountants or tricks to do his taxes. Because his income isn't salary but investments, he pays a much lower rate. There's the problem.

[dysfunctional press]

18. that's exactly the problem.

wages earned through labor should NOT be taxed at a higher rate than investment income. imho it's COMPLETELY immoral.
and it's utterly AMAZING to me that the repukes are able to continually hoodwink so many working people into going along with it.

[JerseygirlCT]

19. Corruption

Those benefiting from such a tax code support their candidates with all the wealth at their disposal. It's a you scratch my back, I'll scratch yours system.

I'm glad people like Buffett are willing to speak out about it.

[mark414]

15. Warren consistently puts his money where his mouth is

poke around here a little bit: http://en.wikipedia.org/wiki/Warren_Buffett

[Faygo Kid]

6. I think Warren Buffet is a class act.

He recognizes that we can decide what kind of society we live in, but if it is to be progressive, we need to pay for it. That's my philosophy, too.

I make more than the Social Security maximum tax, but I would be happy to pay on my entire income, because I think Social Security is important.

My child is way past SCHIP (31), but I think it's ridiculous to deprive health insurance from kids of families making $60,000 a year, which ain't much with a family, and they shouldn't even have to worry about it, even if I have to pay more taxes. (No kid should be without health insurance, period.)

I am NOT pleased about $3 billion a week for an illegal and immoral war in Iraq, however.

[bbinacan]

9. See my comment #5 n/t

[babylonsister]

11. See #7. He's spending his money wisely. nt

[ClarkUSA]

12. Buffett is a wonderful man who's always supported Democrats in presidential elections.

He's always been against the Bush tax cuts for the wealthy along with Bill Gates' dad and George Soros.

[riverdeep]

14. I can imagine he probably gets the cold shoulder at the country club. n/t

[JerseygirlCT]

17. Oh I doubt it.

Even among the other ultra-wealthy, his money smarts still holds a great deal of respect, and probably a little fear!

[Buns_of_Fire]

21. He could BUY the country club, if he wanted it!

Along with several of the ultra-wealthy to use as busboys. And they know it, too.

[ProfessorGAC]

20. He's Been Saying This For Years

He said, when Bush cut taxes, that he thought it was a foolish move and that good big businessmen and financiers didn't need those to be profitable and grow the economy.

The Professor