When a super-wealthy guy like Warren Buffett talks about taxing the rich– in the pages of the New York Times, no less– it gets the rest of the media talking. But that doesn’t mean that talk will get things right.
Here’s one example from ABC World News (8/15/11):
BIANNA GOLODRYGA (ABC NEWS): Much of Buffett’s income comes from capital gains, profits resulting from investments, and they’re taxed at only 15%. Buffett’s solution, rates should be raised for the 300,000 Americans who make more than a million a year, left alone for everyone else. An additional 1% tax on the richest Americans is estimated to raise $100 billion in extra revenue during the next decade. But tax experts say it’s not enough for just the super-rich to pay more.
MAYA MACGUINEAS (PRESIDENT OF THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET)
The bottom line is that the fiscal hole that we face is so large that everybody is going to have to be prepared to pay more in revenues in the end.
Nowhere does Buffett propose that his income tax rate should be increased one percentage point. In fact he talks about how his income tax rate is about half of what people who work in his office are paying. His column also talks about how the super-rich get a break on capital gains; as Buffett sees it, when the capital gains rate was 39.9 percent– over twice what it is now– it didn’t stop people from investing.
So why is ABC low-balling his call to tax the wealthy? More realistic projections of how much can be gained by rolling back tax cuts for the wealthy tell a different story. Chuck Marr at Center on Budget & Policy Priorities pointed out one way to raise a trillion dollars over 10 years:
Returning the average tax rate on the top 1 percent of taxpayers to its 1996 level of 29 percent could raise about $100 billion a year, or $1 trillion over the next decade.
Chuck Collins and Alison Goldberg note that
Almost 500 high-income taxpayers support the Fairness in Taxation Act, that would increase top tax rates on millionaires, generating an additional $78 billion in urgently needed revenue.
A New York Times story following up on Buffett’s column pointed out that
his proposal would put a significant dent in the nation’s budget shortfall. Based on projections by the Joint Committee on Taxation, the Congressional Budget Office and the Treasury, the tax increase on all three fronts would generate as much as $500 billion in new revenue over the next decade – about a third of what the Congressional committee is supposed to cut from the deficit.
The ABC report does conclude by pointing out that this $100 billion figure could build 7,000 new elementary schools. But Buffett’s actually proposing to raise far more money than that. Why is ABC trying to give the super-wealthy a break?
Why is ABC trying to give the super-wealthy a break?
Maybe because their corporate overlords want them to.
Hey,Big Corporate ABC,report in an UNBIASED fashion,please !!!!! Do the RIGHT thing,and remember…money doesn’t talk,it SWEARS !!!(B.Dylan) Peace and Justice, The Watchman
Corporate Overlords. They have a strangle hold on our government and elections. With Citizens United in operation through out our fair land, those of us who want public funding of elections and Representatives who actually work for THE PEOPLE are OUT OF LUCK! With $billions$ in unidentified donations pouring into Corporate Representatives and Senators, and even Barack Obama, the only chance progressive change makers have is to stand together and try to thwart the efforts of the “MONIED ELITES”, who by the way think they own the place. We did it in California in 2008. We had two of the RICHEST REPUBLICANS ever running for office using $Millions of their own money and “Koch Brothers Funding” and guess what? WE DEFEATED THEM ANYWAY! If California can do it so can every other state! Or maybe NOT! Maybe Californians are now into 30 years of pursuing a Green economy and the rest of the Nation?….. NOT SO MUCH!
Buffet has voiced this before. He knows that even at a real tax rate of 35% he and his ilk won’t be pinching pennies for rent or food or electricity. But just look at the owners of the Media. Corporate conservatives who will do most anything for ratings and a buck. Even hire Liberals if it brings in the bacon. Only up to a point as the departures of both Keith Olbermann & Cenk Uyger from MSNBC.
attest. (forgot that word at the last sentence.)
The paradigm is shifting from conservative versus liberal to corporations versus democracy.
david stockman recently pointed out that one of the reasons capital gains tax rates were cut way down at the beginning of the reagan years was because inflation was above 15%….and, at the time, a good chunk of realized profits was an illusion…today, he continued, with low inflation there is no reason to keep it at 15%.
Perhaps some of this disparity could/should be overcome with the Alternative Minimum Tax. It is a travesty that supposedly some pay zero taxes.
Why waste time on nooze media? It aint gonna get better. Not under a kaputalist system. Screw em.
Surely Chuck Marr did not say 29% as “quoted” above. In 1996 (from 1993-1999) the top rate was 39.6% on what one earned over $125,000. And as Buffet said, it did not kill jobs!
Tom Hendricks – Good point
Buffet……what a conniver.He has made his money on takeovers folks.And what would happen if you raise taxes on those not positioned as well as he is…….Businesses that are standing on a knifes edgeand cant handle any more.Why more takeovers and more moolah for mr Buffet.This is one manner or another has always been his game.Follow the money trail people.And also his statements about how much he pays in percentage to the clerks is a total joke.Forget his risk factor….He pays 36% corp tax(yes that is his money too)that they don’t pay.Then he pays his personal tax that percentage wise is lower than theirs do to his in effect investing back into the economy in(so called tax shelters) a way that gives the government loan of his capital.His actual taxes are massive.And to the final curtain……..is death tax will eat 50% of any gains he makes!So pa lease mr buffet…..your game is pretty obvious to anyone who has followed your career.Leverage people into a weak position and acquire them.And what better ploy than to use class warfare as you deal a loaded deck.
I’m sure Buffet has the interest of the American people at heart not his wallet, look at how he lives. And with corporate profits coming in at record highs what knife edge are you talking about the only knife corporate America has is the one it uses to cut jobs to increase profits.
@ Martha H…marr was talking about effective income tax rates, [including investment income], not top marginal rates
here’s the quote “Returning the average tax rate on the top 1 percent of taxpayers to its 1996 level of 29 percent could raise about $100 billion a year, or $1 trillion over the next decade.”
click on the words “pointed out” in the post up top
ndbltwy
I cant tell if you are serious about his motives….. but the knifes edge is this.Large corporations have cut to the bone and so their sheets LOOK good.Smaller corporations are on that knifes edge.It is all an illusion.It is like looking at the stock market.Up down but really nothing is good.
Woodward…..Raising taxes at this time is lunacy.If we did the government would instantly piss it away anyway.That is how that game works.This is not a fiduciary problem.And no amount of taxation will help until the government first stops spending and growing.Cut a trillion(real cuts)then we will talk in ten years about a raise in taxation.Till then i will trust those who earned the money…with their money,before I will trust a government that has earned no trust with the money already given them.Isnt the definition of insanity doing the same thing over and over expecting a different result?Why such anger at the tea party?The government in effect says we have managed your money like a drunken sailor…give us more.Um no not this time.Not from the poor,not from the middle class,not from the rich,and not from the super rich.Not a dime until this government gets control of its spending borrowing and printing money.The last debacle fighting the fiscal problems of this country proved forever that this government does not take its responsibilities seriously.They cut nothing in effect.Till they do stop begging for other peoples money to fund every liberal dream you ever imagined.
michael e wrote: Till then i will trust those who earned the moneyâ┚¬Ã‚¦with their money…
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Unless his name is Warren Buffett, apparently. Then, even though he’s an extremely successful businessman and investor, he cannot be trusted at all because he’s talking about raising taxes.
This is a pretty glaring contradiction in your usual positions, IMHO. Trump and other right-thinking businessmen can be trusted simply because they’re successful businessmen. But since Buffett is an extrememly successful businessman and investor, he must have some hidden agenda because he’s spouting something you disagree with.
By the way, do you really think one of the richest and most successful investors in history needs to put forth the sort of needlessly complicated and almost-neglible-odds-of-success plan you’re alleging? He’s not some Bond villian with plans to own the entire country and then blow up the moon; he’s just some insurance guy from from Nebraska who knows how to invest better than most. Completely ridiculous.
Well John simply put he cant loose for winning, and he is an old man.His motives counted when he had skin in the game…not now.And there is something you cant deny…….No one is stopping him from giving a higher tax.Hell he can give 99%.So can all those hollywood stars.They do not need a government order to do so.Lead the way.Try to show people this is the way forward.Lead by example.No one is stopping him or any Dem.Go ahead shame us into giving more.A little like we shamed Obama and Biden into giving to charity(they never did).
As far as trust….My point was until this government proves they can be trusted with everyones hard earned money….why give them more?i believe people who earn the money are a better steward of that money than those who have spent a life confiscating and redistributing while living on the taxpayers……to horrible result.You don’t give a hard core drug addict more drugs.The left is addicted to the idea that the way to raise money is taxation of existing wealth,instead of natural taxation by the CREATION of wealth.Im all for an end to tax loopholes that do not serve the interest of America.And i would favor a simpler tax structure.My favorite is the flat tax.Of course the 50% now paying nothing should pay something.A dollar each would still be something.But In the end we can not tax our way out of this.If Buffet believes that-senility has set in.Raise taxes on the super rich and we may pay for something but then what?Soon the government has another “something”.
78 billion is the imaginary number thrown about by Dems to be gained from yearly taxation of the rich .Obama blows his nose on 78billion.We are borrowing more than that every hour on the hour.This is the morass.You libs are igniting class warfare over an hours worth of borrowing.I think senility is spreading.
@ michael e: So Buffett is old and senile now, and can be brushed aside just like that? Sorry– not buying that one. I don’t ‘spose you got any proof of this? Look: people who disagree with your vision of taxation and whatnot are not automatically morally or intellectually flawed. You and the Tea Party do not have sole ownership of some moral or intellectual high-ground on this one– much as you wanna think you do. People can disagree on this without being liars, hypocrites, and/or morons. In essence, there is no high ground– the whole area is ripe for debate; if Buffett stakes his position in one area you don’t like where it is, then respond without reducing him to a sterotype senile old man.
And here we go with the voluntary overpaying tax distraction (again). [sigh]… So a few people should contribute more than they’re ‘sposed to– not even sure how you do that, by the way; you’re just assuming that they can– even though there’s not enough of them to make any significant impact on the budget? So they should do something completely senseless– and then we’ll listen to them? OK…
Can this street run 2 ways? Can I be glibly dismissive of any tax-griping-politician who enjoys the protection this nation provides but isn’t or hasn’t served in the military? After all: they wanna strong nation and don’t wanna pay adequate taxes to pay for it, so they and their children oughta be expected to to pick up a rifle and contribute, right?
No John I am not saying he is a dolt.He has been very good at making money for himself and good for him. But Now as his life nears its end and he has little skin in the game, and he cozies up to Obama in private meetings ,we hear he has these overwhelming charitable feelings that would be better for the government and he believes the people.He has had his “come to jesus moment”.Im just not willing to steer the economy his way.He simply does not persuade. Kindof reminds me of all those 75 year old judges trying to out law abortion.and dont poo poo the idea away that he can pay anything he wants.I am not forced to give 15% to charity by anyone.But i always have(at least when I was not struggling).Obama and Biden have never given anything to speak of ,and that is a disgrace.They somehow the wear the crown of the charitable administration because they are willing to take from others.
And you said something important.”Even though there is not enough of them to make an impact on the budget”EXACTLY sir!!!!We have said that if you tax every person making over 250 thou at 100% and confiscate all their good to sell off…and time it by 5….you still are not out of this mess.I dont doubt that you can raise some revenue by doing what mr buffet says and pay for this or that government program.We tea party members simply dont believe the government has proven itself a worthy steward of the people trust that would allow any more tax raises on anyone.Of course i totally agree the tax structure should be simplified.My God it seems too many members of obamas staff have been tax cheats claiming confusion.I would love a flat tax.No more loop holes no more shelters.But mr Buffet is also not too old John not to be suspect.As trump said……..”Buffet has never done anything in his life that has cost him a dime.Neither have I.Why believe he is starting now?’
@michael e: You called him a conniver and suggested that he’s senile. I fail to see a significant difference between those insults and calling him a dolt You may not wanna steer the economy the way he does, but that doesn’t make him stupid and you smart.
Regardless, it is glaringly contradictory to how you normally espouse the praises of successful businessmen: you seem to think that successful businessmen are qualified political leaders simply by virtue of being successful businessmen. But for some reason, Buffett gets the “conniver and senile” treatment. Quite odd. Almost like you’re grasping for some reasons to discredit the guy because his ideas conflict with yours– arguing that we should all ignore his ideas about the economy, even though his sucessful career suggests he probably knows what he’s talking about to some degree.
Read more closley: I said there’s not enough people who are willing to voluntarily pay excess taxes– not give to charity– to make a significant difference. And I’m still not sure how one could pay more than one’s tax bill says. You just repeat, ad nauseum, that they should and until they do they can be ignored; you have never explained how exactly one goes about paying more than what their 1040 says they should. My larger point on this issue is that you cannot be so easily dismissive of those calling for higher taxes because they don’t pay more than they’re ‘sposed to. Again, it’s like you’re reaching for ways to discredit people rather than substantively addressing their arguments. That Nobel-prize-winning economist who’s calling for higher taxes? Well, we can just ignore him/her because he/she didn’t pay 10 times more than his/her tax bill required, right? So that’s the way the world works for you, then? Sorry, pal– it don’t work that way for me.
John, John, John, why do you waste your time and breath?
At the end of March 31, 2010, the Federal Reserve studies concluded that:
Net income of US: 54.6 trillion dollars.
Top 1%(3 million people) has(revised from 35% to 40%) has 40% or 21.84 trillion dollars.
Top 5%(15.5 million people) has 67%, or 36.58 trillion dollars.
Leaving only 20.74 trillion dollars to the 95% 294,500,000 population of the rest of us.
So, if the top 5% were to pay their 35% tax rate, no loopholes, no tax breaks, but their straight out tax rate, $12.80 trillion dollars could be raised. And that was based just on the 2010 income levels. The rich can afford to pay accountants to find these loopholes and still come out ahead paying a minimum tax rate. And even paying the $12.80 trillion dollars, they would still be millionaires and billionaires!!!!
Oh, and those who think these “job creators” were somehow successful on their own, well, you are simply misinformed.
There is never a distinction by the right wing of those greedy folks who gained their success by taking from others.
Ordinary folks who stand up for the rich because they think they themselves will be that rich one day. The odds are like the lottery very much against it.
I have nothing against rich successful people, the ones I know are never concerned about their tax rate, as long as they can get away for the week end, that is far more important.
Praising the rich is not praising success, many on Wall street made out like bandits during the housing blowout, they were just criminals, successful perhaps at that.
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