Warren Buffett Announces Support for Higher Taxes on the Rich
Warren Buffett, the famous billionaire investor, recently wrote to Congress, asking them to consider tax increases on the wealthiest American taxpayers.
The Chairman and Chief Executive of Berkshire Hathaway has $349.
2 billion in estimated net assets, and has repeatedly topped Forbes' lists of the most powerful individuals in business.
In his letter to the New York Times last week, Buffett made an impassioned argument for higher capital gains and income tax rates on those with incomes in excess of $1 million per year.
Using his own tax bill as an example, Buffett pointed out that the 17.
4 percent that he paid was far below the national average, which ranges from a 33 percent to a 41 percent tax burden.
In particular, Buffett criticized the trend in which those who "make money from money," like investors, often pay significantly less tax than those who make money from a job.
Buffett quoted numbers compiled by the IRS since 1992, looking at the tax returns of the 400 Americans with the largest reported incomes.
Among these individuals, the aggregate taxable income amounted to approximately $16.
9 billion and they paid 29.
9 percent in tax.
However, in 2008 numbers show that the aggregate income had risen to $90.
9 billion, though the tax burden on these individuals had dropped to only 21.
5 percent.
Buffett therefore recommended an immediate tax increase on these ultra-wealthy individuals, specifically focused on forms of income frequently utilized by investors, such as dividends and capital gains.
He also mentioned an additional increase in rate for those who make in excess of $10 million per year.
A Disservice to Low-Income Americans? While many have touted Buffett's letter as a noble act of self-sacrifice for the good of the US economy, others have their doubts.
Forbes recently criticized Buffett's plea, claiming it ignored the affect that higher taxes on the rich can have on the middle-class and poor.
Forbes argues that such increases on the rich could have a ripple effect that would ultimately hurt those with less expendable income.
Specifically, Forbes cited that increased taxes on capital gains and dividends could result in fewer investments, which would, in turn, deprive those companies or entrepreneurs of much-needed capital.
Less money given to charity due to higher taxes could also have a significant impact on nonprofit organizations that rely on money from philanthropists for their existence.
Ultimately, Forbes makes the point that any tax hike, including one focused on the extremely wealthy, could have knock-off effects that would result in less income and more tax debt for those who can least afford it.
The Chairman and Chief Executive of Berkshire Hathaway has $349.
2 billion in estimated net assets, and has repeatedly topped Forbes' lists of the most powerful individuals in business.
In his letter to the New York Times last week, Buffett made an impassioned argument for higher capital gains and income tax rates on those with incomes in excess of $1 million per year.
Using his own tax bill as an example, Buffett pointed out that the 17.
4 percent that he paid was far below the national average, which ranges from a 33 percent to a 41 percent tax burden.
In particular, Buffett criticized the trend in which those who "make money from money," like investors, often pay significantly less tax than those who make money from a job.
Buffett quoted numbers compiled by the IRS since 1992, looking at the tax returns of the 400 Americans with the largest reported incomes.
Among these individuals, the aggregate taxable income amounted to approximately $16.
9 billion and they paid 29.
9 percent in tax.
However, in 2008 numbers show that the aggregate income had risen to $90.
9 billion, though the tax burden on these individuals had dropped to only 21.
5 percent.
Buffett therefore recommended an immediate tax increase on these ultra-wealthy individuals, specifically focused on forms of income frequently utilized by investors, such as dividends and capital gains.
He also mentioned an additional increase in rate for those who make in excess of $10 million per year.
A Disservice to Low-Income Americans? While many have touted Buffett's letter as a noble act of self-sacrifice for the good of the US economy, others have their doubts.
Forbes recently criticized Buffett's plea, claiming it ignored the affect that higher taxes on the rich can have on the middle-class and poor.
Forbes argues that such increases on the rich could have a ripple effect that would ultimately hurt those with less expendable income.
Specifically, Forbes cited that increased taxes on capital gains and dividends could result in fewer investments, which would, in turn, deprive those companies or entrepreneurs of much-needed capital.
Less money given to charity due to higher taxes could also have a significant impact on nonprofit organizations that rely on money from philanthropists for their existence.
Ultimately, Forbes makes the point that any tax hike, including one focused on the extremely wealthy, could have knock-off effects that would result in less income and more tax debt for those who can least afford it.
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