The American Spectator

A. Doer| 8.15.11 @ 1:05PM

You pay twice as much out of every dollar you earn as Buffett pays out of every dollar he earns. He thinks that's a symptom of an unfair tax system. You apparently see no problem with it, which is great. Maybe the tax system could be even more regressive, so you could pay three times as much of every dollar as Buffett. Or four times. Or five times. Is there a point at which it would start to seem unfair?

In any case, eliminating the policies that favor companies Buffett's company owns would have a negligible effect on Buffett's income. If you think otherwise you don't know how he became as rich as he is. It wasn't the subsidies and whatever that let him build his net worth from nothing to tens of billions.

Trinacria| 8.15.11 @ 2:24PM

I'm not worried about paying twice as much for every dollar I earn as Warren Buffet does. I am, however, profoundly concerned by the fact that nearly 50% of my fellow citizens pay nothing and yet have the right to vote themselves favors (which I, in turn, have the privilege of funding). Meanwhile, the fastest growing epidemic among these so-called "poor" Americans is....wait for it....OBESITY!

If Mr. Buffet's conscience compells him to pay more in taxes, then by all means he should write a check, say ten Hail Mary's, and go forth and sin no more. I'm aware of no legislative barrier to such an act of contrition.

A. Doer| 8.15.11 @ 2:45PM

If they earn wages, they pay 16% or 17% ... roughly what Buffett paid! ... in payroll taxes.

A big chunk of the 50% ... actually it will be about 46% in 2011 but why quibble ... in that much-cited statistic don't pay federal income tax because they don't earn wages. To get to that number you have to include retirees who live off of social security, which is tax-exempt. Good luck proposing that we tax social security checks.

Most of the rest are paying the 16% or so in payroll taxes but not getting hit for more than that because they earn so little. Some of them are minors with part-time jobs, for example. Others are just plain poor. (But not all. Some are benefitting from tax deductions for having children, mortgages, etc., and earn little enough that they end up paying no taxes even though they're earning above the poverty line.)

Here's some data for you:
http://www.taxpolicycenter.org.....me-Tax.pdf
I'd be interested in hearing which turnips you hope to squeeze a significant amount of blood out of, beyond the payroll taxes some of them are already paying.

But to summarize your position, you don't mind paying twice as much out of every dollar you earn as Buffett pays out of every dollar he earns (would you mind if it were three times as much? four? five?) but you do find it upsetting that people living off of social security don't pay income tax and that people with low wages only pay 16% or so in payroll taxes and don't get hit up for more than that.

Trinacria| 8.15.11 @ 4:31PM

Permit me to clarify, AD. The point is that there aren't enough Warren Buffets to finance a nanny state that serves as the primary source of revenue for nearly 50% (sorry, 46% - though I do believe 46% is "nearly 50%" smartass - but why quibble) of it's citizens. And what, pray tell, shall we do when the number exceeds 50%? Toqueville had a thought or two on the subject; perhaps you might find them interesting.

Spailipin Fanach| 8.15.11 @ 2:46PM

There is a simple solution to Warren's low tax dilemma.

Institute a tax structure that sets a rate of 98% on assets of Leftist foundations and trusts set up by guilty speculators.

Bill Hussein O'Stalin| 8.15.11 @ 6:52PM

Here's how phony Buffett is:
http://www.humanevents.com/article.php?id=38595
Buffett is already planning to transfer a large majority of his considerable wealth to a charitable foundation (The Bill and Melinda Gates Fund) upon his death, thereby ensuring Treasury never gets a hold of his fortune. Buffett also plans to give a portion of his remaining fortune to other foundations run by his three children—a savvy method of avoiding the death tax while ensuring his heirs’ financial well-being. Not a bad set-up and one that must make it pretty easy to assume the public role of mogul-cum-martyr.

All and all, the death tax has treated Warren Buffett pretty well—no wonder he is so excited about its potential resurrection.

win| 8.15.11 @ 8:20PM

There is more to it then that. According the Forbest 400 list of richest americans, Buffet's income is $100,000 per year because he chooses to just take an income from his company.
Even under higher taxes on the "wealthy" Buffet would not be paying more.

Clint| 8.15.11 @ 1:19PM

Buffett Voted For Obama.

kingsmill| 8.15.11 @ 2:39PM

Tiresome, guilty speculator Buffett thinks others should pay more taxes.

This from a man who is dedicated to the value investing philosophy that carefully scrutinizes corporate balance sheets etc. We are supposed to believe that a young WB would invest in corporations who had crushing tax liabilities. Hardly.

Elderly, guilt ridden Warren loves the "idea" of high taxes. The young productive Warren would have become an international or a currency speculator if his tax ideas had been en vogue in his salad days.

A. Doer| 8.15.11 @ 2:56PM

Um, the tax rates were higher when Buffet was starting out. When he first started investing the top marginal tax rate was 91%.

Second, what he's arguing is that it's unfair to you that the government takes twice as much out of every dollar of yours as it takes out of every dollar of his.

But the GOP elites want you just to say "lolz so let him pay more voluntarily then!" and then shut up and continue paying twice as much out of every dollar you earn as people who earn more in a day than you'll accumulate in your entire life.

Say it with me: "Lolz! Why doesn't he just write the treasury a check then! Ha ha." Then shut up and don't complain that the government takes more from your dollar than it does from his. Good little Republican! Good! With hard work maybe you'll be earning four hundred million a year some day! That's right! That's right! Ooooh you're such a good little Republican! Yes you are! Yes you are!

Spailipin Fanach| 8.15.11 @ 3:14PM

WB's return on his investments skyrocketed when lower tax policies were in place. Berkshire Hathaway reached the stratosphere well after the confiscatory Democratic tax rates had been abolished.

Even JFK realized that confiscatory tax rates are a killer(in between his philandering).

Repeat after me "confiscatory tax rates are immoral and economically counterproductive"

A. Doer| 8.15.11 @ 3:50PM

Buffett's tax rate on hundreds of millions was, what, 17%? Is that confiscatory?

BTW, if paying twice as much out of every dollar you earn as Buffett pays on the dollars he earns doesn't seem unfair to you, are you sure the difference is large enough? Maybe you should be paying three times as much out of every dollar you earn? Four times?

How about cutting capital gains and dividends taxes to zero, as some GOP elites propose? That would have Buffett perhaps paying just about the same amount you pay, if your salary is close to his (100,000 a year). Of course you'd be paying a third or more to the government while he'd be paying about 0.008%, with the vast majority of his income untaxed. But you'd be paying the same amount as him. You realize that's the direction the GOP elite wants to take this, I hope. Because they're only interested in doing what's fair ... to you!

Thom| 8.15.11 @ 6:18PM

Buffet earned 46 million (not hundreds) paid 8.1 million or about 17.75%. I paid 14.7% in Federal income tax, 15.3 payroll tax, another 10%+ in State and Local and there is 20% more in the price of every good and service produced by a tax paying business thus over half the GDP goes to pay taxes now. He paid the same basic payroll tax rate up to the allowed max for SS takings and for that he will get a little more than I do in SS payments provided none of his SS payment is taxed away which it most certainly is being done now with a 46,000,000 a year income. Between all the legal deductions he takes and investments in tax free government securities (also known as buying government debt for a ridiculously low rate of return in return for no taxes being paid on that return) he like anyone else with enough money to live off their investments can and do adjust their “incomes” according to their risk-reward ratio of the economic conditions. In English, hypocrites like Buffet take their wealth out of the market when they aren’t making the normal market ROR or when they can’t shelter their investment “income” from taxes in accordance with their goals which naturally results in a net loss to the Treasury. Every time there is a net increase in marginal rates on ordinary income or capital gains the expected revenue does not show up because people with the means move their capital to some other place just as Buffet has done now that he cannot make normal “income” in a rising market. The same man that complains about losing his accelerated deprecation deduction on this company’s corp jets now wants those that don’t have billions of wealth to pay higher rates knowing they don’t have all the tax shelters his billions has. Consider that Buffet only made .001% on his 40 billion net worth last year and then figure out how he did that. Try living off that rate of return if your net investment income is between 1 to 2 million in an IRA or 1-10 million a year for those “filthy rich” when they can’t make normal 50 year market ROR of 11% before taxes. Buffets problem goes well beyond “do what I say not as I do”. He voted for and helped create the monster that is eating the Nation now so I’m not particularly concerned about his late in life guilt trip here.

WFB,Jr.| 8.15.11 @ 6:28PM

Leftist ideologues are not interested in facts. You have overloaded their limited faculties. They can only answer with Soros talking points.

Thom| 8.15.11 @ 7:25PM

Be that as it may ( and generally true ), ignorant others read this Marxist crap and assume it must be correct because it smells so sweat……

To make the point Buffet only made .001% on his 40 billion net wealth last year. Even accounting for the normal liquidity ratios found in one’s net worth, this is ridiculously low. Buffet is famous for his “printing press” method of investment whereas he earns a little return on large movements of money in and out of low risk investments. If he had put his 40 billion net worth in one of my “cash” funds where I’m earning 3% APR he would have been taxed at the normal income rates to the tune of 1.2 billion AGI, not 46 million income his tax accountants arranged. If he wanted to pay more income tax that would certainly accomplish that in spades but it would also put his money at “risk” which is something most people with money at this level have the luxury to not do. I on the other hand need the ROR while good old Warren does not. What this hypocrite is essentially suggesting is not that he will pay any more real income tax on his investments but that those who get most of their wealth from a salary and pay ordinary income rates on that will get soaked because they don’t have the tax shelters the Billionaires club normally has. It is the same old con where those at the top try to keep “new money” out of the club. To pay more to the Federal government all Buffet has to do is actually earn taxable income with his wealth instead of giving it away to unproductive leftist agenda organizations for which they then get a tax shelter and a write off. He could also donate a billion or two to make up for his past sins (and then write off that donation and not pay a dime in income tax for that year). Or he could do what all people with money can do and many of us may have to do if this mess keeps going on is sell assets at a loss to generate an “income” which then cannot be taxed either. Either way the “rich” can avoid paying more in income taxes if they so desire but without private wealth funding the creation of wealth this nation is toast.

kingsmill| 8.15.11 @ 3:19PM

AD, spoken like a true Sorosian! You've learned well from your master.

Jim| 8.15.11 @ 4:20PM

...says the Rupert Murdoch zombie.

Spailpin Fanach| 8.15.11 @ 4:48PM

...the witless chime in to mimic their betters....

David W| 8.15.11 @ 3:15PM

What do you think Warren will do with his wealth when he dies? It won't go to his kids. It will all go to some tax-sheltered trust fund. If he wants to put his money where his mouth is he will give it all to the government.

If Warren and the other liberal hypocrits are so concerned about their effective tax rates being so low, then all they need to is tell their tax preparer "NOT" to take advantage of the tax code right now. They could then pay a lot more in taxes than they do now (and Obama would have paid $100,000 more in taxes had he not taken advantage of the tax code).

As soon as these liberals give 50% of their net worth to the Government AND tell their tax preparers to not take advantage of the tax code, then I'll believe them and then I might support higher tax rates. But they stand up, holier than thou, the rant about the unfair tax code, because they know there are conservatives who think tax rates should be low. Thus they can look good knowing that they will never have to put up.

Until these rich liberal hypocrits actually give away their wealth, Warren, Obama, George, Michael, Nancy, Harry, etc., just shut the hell up!!!!

RWinks| 8.15.11 @ 3:32PM

This disgusting SOB, Buffett, is giving most of his accumulated wealth to a left-wing foundation. He gives hypocrisy a bad name.

Rather than advocating policies which would free and unleash the private sector, he pushes for policies to put even more of the nations wealth under the control of government tyranny. Why anyone would listen to this immoral carbuncle on Nebraska's butt is beyond me.

Controse| 8.15.11 @ 7:48PM

God all mighty. If Warren doesn't think he is paying enough please someone explain to him all he as to do is right a bigger check and send it in. Warren, make it as big as you want. Just keep it to yourself and get back to being a successful capitalist.

Wayne | 8.15.11 @ 8:50PM

What is with Ben Stein. The insult to Laura Ingraham was quite insulting. All she suggested is that Buffett write his own check to the government. Now I remember why Stein is unwatchable.

Thom| 8.15.11 @ 9:13PM

Ben also thinks the "rich" should pay more income taxes......and Laura couldn't get him to explain how that was going to fix what we are in when he said that on her show some weeks ago.....

rb| 8.15.11 @ 10:54PM

Author states - "But if Buffett really wants to send more revenue to the government, he should realize that increasing tax rates on income and capital gains is a terribly inefficient and unfair way to reach that goal."
Inefficient? PROVE IT! Unfair? Asking a billionaire hedge fund manager to pay taxes at a rate equal to an auto worker or soldier is unfair? REALLY! It's truly a spectacle to see one's mind hold such demonstrably false statements as truth!!