Warren Buffet believes that the super-rich should pay more taxes, a minimum of 30 to 35 percent. And why not? Buffett already has his fortune. He won’t be taxed on the money he already has. By taxing new money, Buffett and those like him eliminate competition. New competitors won’t have extra capital to purchase stocks like he’s been able to do.
Let’s get Mr. Buffett to turn over money he’s already earned to even out what he’s calling on the government to do with current investors. This would help to level the playing field.
Buffett can’t believe the government is going to use any new money wisely given its dismal track record.
Do you think Buffett would ever invest in a company that was run like the federal government? If there’s one thing businessmen know, when money is spent, it’s their money, and there’s no easy way to get more money if they run out. They can’t steal it; they can’t force people to give it to them; it’s expensive to borrow; they have to pay it back with interest; and they can’t raise their debt ceiling when financial times get rough.
Calling for higher taxes on these newcomers is going to put people like Buffett, Bill Gates, and other rich people at an advantage. It’s typical of the rich, whether individuals or corporations, to use the power of government to put regulatory roadblocks in front of late-to-the game competitors. Also, they are the first to benefit from the infusion of cash (Quantitative Easing) into the economy that results in the artificial rise of stock prices.
Buffett and his rich friends know all of this. They also know that paying higher taxes won’t make a dent in their existing portfolios. Buffett’s worth around $40 billion dollars. Let’s say that he gets taxed ten percent on what he’s already worth. That would be four billion dollars. That’s a lot of money to us, but Buffett will still have $36 billion left. Even at his proposed 30 percent tax, he would still be $28 billion to the good.
Buffet said in one of his yearly letters to his stock holders “that when he bought a company and sold it for a 4.8 billion dollar profit, he was taxed 1.2 billion dollars of which he stated had paid for everything that the government needs to pay for social security, defense — everything — for about 4 hours. . . . Specifically for 2011, the projected spending was $10.46 Billion per day.”
What will the federal government do with the extra revenue? The Democrats will use it to buy votes. What do they care? It’s not their money. If they need more, they can tax the less than super-rich.
Buffett knows that there aren’t enough rich people in the United States to make a dent in the deficit, even if all their money was taken. Their stock values would go nearly to zero, incentive to work the following year would fall, and there wouldn’t be any more rich people to tax.
No one is stopping Warren Buffett from voluntarily giving money to the federal government. He could write a check today. He won’t, because he knows he doesn’t have to. He only needs to make the offer to look good to all the guilt-manipulators and bloodsuckers that pontificate from their lofty towers of moral superiority. He also knows that if such a tax were ever to go into effect, none of his present $40 billion would be touched.
Which is better? To allow people to keep most of their money so they can invest, loan it to new business ventures and potential homeowners, and spend it so it will create more jobs that people will get paid for or give it to the government so it will be wasted on political projects with little or no accountability? As the Heritage Foundation reports, “So far, 34 companies that were offered federal support from taxpayers are faltering — either having gone bankrupt or laying off workers or heading for bankruptcy.”