Warren Buffett's take on taxing the wealthy

Kudos to Buffett for having the balls to say this:
http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html?_r=1&src=rechp

 

Amen, Brother!

 

"In 2008, the aggregate income of the highest 400 had soared to $90.9 billion..."

Yes, the rich should pay their share. Let's say we tax the mega rich (top 400) at 50% (which is too high, but go with me here).

That's $45.45 billion, which is a start, but really not much when faced with a $1.6 trillion dollar deficit for 2011. For those that don't know, as a nation we will spend $1.6 trillion more than we bring in for 2011.

Heavily taxing the mega rich ins't going to solve our debt problem. Not even close.

Balance the budget first, then pay off the debt. Done.

 

Yeah, but in your little scenario, that 45.45 billion would be coming from folks other than the middle class. Ever wonder why so many people deal drugs....let's see...first, no taxes...hmmmm, how coincidental.....




.

 

I visit this forum to get away from all the political blather and to get lost in talk about my passion. Depressing to see this here.

 

This forum section is Anything Goes. If you don't want to see it then don't look!

 

Just change the tax code to remove the loopholes - or maybe a flat tax so everybody pays the same rate. The uber-wealthy don't pay their fair share, it's clear. I'm personally beyond the point where I earn enough in a year to worry about it; but the middle class is gonna disappear if something isn't done about the tax code.

Yes, balance the budget.

Yes, FORCE accountability in government spending of ALL categories.

Yes, redefine 'corporate campaign contributions' to eliminate the corruption.

and... Yes, don't re-elect incumbents until both houses are clean and free of criminals on the take and we have politicians that can make real progress.

(did I say that?)

Carry on, and bravo to Mr. Buffett.

 

I made a mistake in my in my little scenario. The mega rich (top 400 earners in the USA) are paying 21.5%. Changing what they pay 50% increases taxes (income for the US Government) by $25.9 billion.

Let me put this another way. If you were short on money this month and couldn't pay your $1,000 mortgage and I gave you $16.19 towards that mortgage, would I have fixed your problem?

In my example above:
$1,000 is the 2011 deficit
$16.19 is the extra taxes generated by increasing taxes paid by the mega rich from 21.5% to 50%

Again, I do think that the mega rich should pay their fair share, but this will not fix the problem.

 

The short term debt issues brought on by the current administration will begin to clear itself up somewhat as economic conditions improve.

Economic conditions will improve when companies both large and small feel there is some stability from political decisions and some sort of plan that involves anything with more substance than just kicking the can down the road, coupled with some sort of stability in stock market conditions that will prevent whale investors from creating their own weather with their little panics and short selling. Whether that comes from regulations (probably a bad idea but maybe necessary) or a feeling that something is being done domestically and the Euro zone to mitigate debt is the question.....Again its back to something that can inspire confidence.

Long term debt is a trickier political time bomb.

The solutions are changes in entitlement programs and raising revenues. The only area left where making cuts means anything is defense. Panetta has already made it clear that doubling defense cuts will "hollow out" the military. His words. He's probably one the few actual public servants left in the country that actually has the interest of the country in mind, and not just because he's in the position he's in now. Doubling defense cuts is what happens if the new budget committee cant come up with anything that can get an up vote, and automatic cuts kick in.

There may be no other reasonable choice...and its time for a review of our role as world police, whether we like it or not. Anyway, defense cuts alone are not the solution.

None of these choices are in any way palatable to any politician. If I were a pol and you tapped me for duty on the budget committee, Id either refuse or start packing my shit for my move out of DC because the voter arent bringing me back, and Im probably losing my funding anyway.

Warren Buffet is a decent fellow that has made a shitload of money and is one of the few that has expressed his gratitude that he lives in a country that would allow for his success. He doesnt appear to be like one of these douche nozzles that began this mess with their creation of derivatives that did not previously exist in order to sap wealth from greedy idiots that dont know when enough is enough. Add in idiots at rating agencies that gave them the big green light, like the one that currently has downgraded the US credit rating. All of them should be in jail.

Too bad there arent more Warren Buffets around.

 

Vte for me in 2012, I can fix all this crap!!

 

I will write you in!