Warren Buffet backs tax increases for wealthy
In new Op-Ed piece, billionaire says that tax will not deter wealthy from making more money
In a move sure to curry favor with President Barack Obama, billionaire Warren Buffet has come out in favor of his tax increases for the wealthy in the U.S. In an Op-Ed piece in the New York Times, Buffet assures that higher taxes will not deter the wealthy from making more money.
The CEO of the conglomerate Berkshire Hathaway, Warren Buffet further argued in his article that such higher tax rates on the wealthy wouldn't deter investors from investing, or damage economic activity the way some anti-tax crusaders claim.
This would close loopholes that allow many people who get most of their income from investments to pay lower tax rates. For example, if such a rule applied to Mitt Romney in 2011, it would have raised his tax bill from $2 million to $4.8 million, on $13.7 million worth of income.
The CEO of the conglomerate Berkshire Hathaway, Buffet further argued in his article that such higher tax rates on the wealthy wouldn't deter investors from investing, or damage economic activity the way some anti-tax crusaders claim.
Buffet did add this as an aside: Instead of setting the cutoff point for high-income households at $250,000, which is Obama's threshold, how about raising it to $500,000 or so?
Since the median U.S. income nationwide is about $50,000, a family earning $250,000 per year seems wealthy to most Americans. People who live in expensive cities like New York and San Francisco argue that a quarter-of-a-million dollars doesn't go that far if you need to spend at least $500,000 to purchase a home in a good area.
For many families, it takes two full-time workers to pull down that kind of money, and the stress of working and raising kids at the same time hardly makes them feel affluent.
It's relatively possible to index the cutoff points for tax rates to the city you live in. But in practice that would make an already complicated tax code devilishly confusing, while inviting vast amounts of abuse.
A typical scenario would have relatively wealthy New Yorkers claiming residency in small towns in Texas.
That's why one income level fits all when it comes to tax rates. However, Obama's preference for higher taxes on households earning $250,000 is only an opening bid. Tax rates on all Americans are scheduled to go upward starting January 1, and reaching a deal to prevent that with Congressional Republicans will require some tradeoffs. An obvious one on Obama's side is raising the cutoff point for tax hikes to $500,000. Buffett has now given Obama some important cover for doing just that.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Warren Buffet, taxes for the wealthy, President Obama, Congress, tax hike
Rate This Article
Leave a Comment
More Business & Economics News
- BAILOUT: Treasury, UAW health care trust will sell 50 million shares of GM stock at a $10 BILLION loss
- Great Recession took its toll: Americans missing their wealth
- Mom making more than dad in one in four U.S. homes
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.