Warren Buffett urges Congress to raise taxes on wealthy
OMAHA, Neb. (AP) — Billionaire Warren Buffett is again calling for higher taxes on the "ultrarich" and he's urging Congress to compromise on spending cuts and tax increases.
Buffett expressed his views on fiscal policy Monday in an opinion article that appeared in The New York Times on the same day Congress returned from the Thanksgiving holiday.
In the article, Buffett mocked the idea that investors would pull back if capital gains taxes increase. Buffett said he's never seen that happen even when capital gains taxes above 25 percent early in his investing career.
"Let's forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased," Buffett said. "The ultrarich, including me, will forever pursue investment opportunities."
Buffett, who is chairman and CEO of Omaha-based Berkshire Hathaway Inc., has complained for several years that Congress has been coddling the wealthy, and President Barack Obama even called one of his tax reform proposals the "Buffett Rule."
He did not immediately respond to a message from The Associated Press on Monday morning.
Buffett said the current tax system has contributed to the growing gap between rich and poor. He said he supports Obama's proposal to end the Bush tax cuts for the wealthy, but he'd prefer setting the point where taxes increase at $500,000 income instead of the $250,000 the White House proposed.
Buffett reiterated his call for a minimum tax of 30 percent on income between $1 million and $10 million, and a 35 percent rate for income above that.
He said both Republicans and Democrats will have to make major concessions to deal with the nation's fiscal problems. Congress is trying to address the so-called fiscal cliff of automatic tax increases and spending cuts that could be triggered at the start of the new year.
"All of America is waiting for Congress to offer a realistic and concrete plan for getting back to this fiscally sound path," Buffett said. "Nothing less is acceptable."
Berkshire Hathaway owns more than 80 companies; including insurance, utility, railroad, furniture, jewelry, manufacturing, restaurant and apparel companies. Berkshire's insurance and utility businesses typically account for more than half of his company's net income.
Buffett expressed his views on fiscal policy Monday in an opinion article that appeared in The New York Times on the same day Congress returned from the Thanksgiving holiday.
In the article, Buffett mocked the idea that investors would pull back if capital gains taxes increase. Buffett said he's never seen that happen even when capital gains taxes above 25 percent early in his investing career.
"Let's forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased," Buffett said. "The ultrarich, including me, will forever pursue investment opportunities."
Buffett, who is chairman and CEO of Omaha-based Berkshire Hathaway Inc., has complained for several years that Congress has been coddling the wealthy, and President Barack Obama even called one of his tax reform proposals the "Buffett Rule."
He did not immediately respond to a message from The Associated Press on Monday morning.
Buffett said the current tax system has contributed to the growing gap between rich and poor. He said he supports Obama's proposal to end the Bush tax cuts for the wealthy, but he'd prefer setting the point where taxes increase at $500,000 income instead of the $250,000 the White House proposed.
Buffett reiterated his call for a minimum tax of 30 percent on income between $1 million and $10 million, and a 35 percent rate for income above that.
He said both Republicans and Democrats will have to make major concessions to deal with the nation's fiscal problems. Congress is trying to address the so-called fiscal cliff of automatic tax increases and spending cuts that could be triggered at the start of the new year.
"All of America is waiting for Congress to offer a realistic and concrete plan for getting back to this fiscally sound path," Buffett said. "Nothing less is acceptable."
Berkshire Hathaway owns more than 80 companies; including insurance, utility, railroad, furniture, jewelry, manufacturing, restaurant and apparel companies. Berkshire's insurance and utility businesses typically account for more than half of his company's net income.
Better idea: do away with all corporate taxes, but require all payouts of dividends and profits be on someone's taxes as Ordinary income, regardless of the national residence of the payee.
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Additional fix: make all profits from investments outside the US by a US national subject to a 90% tax.
Warren ol' boy..........if you wanna pay more taxes, send em a check. A big one. But you don't speak for everyone else. Rich or poor !
 @Rob C 503 http://www.gallup.com/poll/153887/americans-favor-buffett-rule.aspx
 @darren vandervort "When robbing Peter to pay Paul, one can always count on the support of Paul."Â
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Big shock that people would vote to take money from someone else and not their own...
 @Rob C 503 He doesn't speak for everyone, but he does speak for the vast majority.
This begs the question, how much money is enough? Does someone really need 1 billion dollars? We're always taught the goal is to earn more money, growth based society, but when do you stop? I mean really, with that much money growth really doesn't stop.
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It dawned on me this morning as I was throwing away $5 on some power ball tickets....I don't want 300 million dollars (or whatever the one time payment would be), I don't want to be that person. I'd settle for a couple of million, pay off everything, move to Hawaii, find a good hobby to keep busy with (certainly music related), and donate a bunch or maybe start a charity, I wouldn't care (and no, none of you psychos out here would get any).
Just do it and get it over with.
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It will be one less scape goat for the liberal tax and spenders to demonize. Once they see that it won't do diddly squat for the economy they will have to find another demon to tax.
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The rich will just move their money out of the US like they did in the UK, Spain, Greece and every other nation that increased taxes on the rich.
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@RalphCramden .........Ralph, did you see the results of the 75% tax on the wealthy in France. They are moving to Belgium in droves and being welcomed with open arms!
 @Rob C 503  @RalphCramden guess you can always rely on the french to 'get the steppin'' when the going gets tough
 @diddy_bop  @Rob C 503Â
I am surprised that the French are this smart. Normally they are pretty slow when it comes to finances.
@Rob C 503  People can move whereever they want. As long as they are US citizens they will have to pay tax.
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If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.
@RalphCramden ......which, Ralph if this notion of a "wealth tax" takes hold,, just watch the exodus from the US.
 @Rob C 503  @oh4FSÂ
Plus he doesn't know anything about US tax law. A US citizen can avoid all US taxes if they have a residence overseas for longer than 330 days.
@oh4FS ........you completely misunderstood my post. The people that are moving are French. And they are the Frwnch that would become subject to the new 75% income tax. To avoid that they are moving to other pars of Europe, most notibly Belgium.
 @Rob C 503 Â
I did see that. And the same thing happened in the UK.
 @Rob C 503  @RalphCramden http://en.wikipedia.org/wiki/Income_tax_in_the_United_States  Look at what our tax rates used to be.