Warren Buffett Wants Congress to Ask Rich for their Fair Share

Wise Economist Cat thinks Warren Buffett is right about raising taxes on the super-rich. Photo Credit: Macro Dini and Her 3rd Blue Eye by jessicafm on flickr cc

Wise Economist Cat thinks Warren Buffett is right about raising taxes on the super-rich. Photo Credit: Macro Dini and Her 3rd Blue Eye by jessicafm on flickr cc

Warren Buffett’s New York Times Op-ed said “Stop Coddling the Super-Rich”

Self-made businessman Warren Buffett is worth over $40 Billion dollars. His article in the New York Times today calls for the Super-Rich (like himself) to pay their fair share of taxes. He said that while “our leaders have asked for “shared sacrifice”” his “mega-rich” friends were left “untouched” by Congress.

Warren Buffett “Stop Coddling the Super-Rich”; Billionaire Investor Renews Call for Higher Taxes

Buffett clearly states that the sacrifice called for by politicians has fallen on the backs of the poor and middle class who fight for us in Afghanistan. Buffett acknowledged that most Americans are desperately trying their best to make ends meet even as the ultra-rich get big tax breaks. Why? What makes the super-rich more important than everyone else?

The buzz word in Republican and Tea Party circles is that the top 1% are “job creators.” However, the so-called “job creators” who are swimming in cash, failed to put that money towards creating jobs in the era of big tax breaks from 2001-2011.

Have Tax Breaks for the Super-Rich created Jobs?

According to Warren Buffett: “People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.”

Warren Buffett says less jobs have been created since the tax rates under G. W. Bush went down for the super-rich. Under George W. Bush there were only approximately 2 million jobs created. Interestingly, more jobs were created when the top 1% paid higher tax rates between 1980 to 2000.

What Tax Rates are Fair for the Super Rich and Everyone Else?

Buffett said he only paid 17.4 percent rate for his income tax in 2010 due to all the tax loopholes and tax breaks to the super-rich. However, those folks who work for him with less incomes paid higher rates of 33 percent to 41 percent.

Buffett said it’s “nice to have friends in high places.” However, he wants to pay what is fair and he admits that no matter how much people are whining about how the rich pay so much tax, in reality they pay less tax than those with less income. Buffett said Congress seems to favor “people who make money with money”. Why is it that Congress gives higher tax rates to those who make money from “a job?”

Buffett said the “mega-rich pay income taxes at a rate of 15 percent on most of their earnings, but pay practically nothing in payroll taxes.”

What Government Does Best when Corporations Sit On Their Money

Government can immediately create jobs for many people looking for work. This would have beneficial economic effects where dollars spent actually multiply their value. A public works program of helping states fix roads, bridges, and schools would benefit the private and public sectors. Without good infrastructure, it’s hard to have effective business.

These 3 Kittens want the U.S. government to create jobs by putting people to work improving roads, schools, bridges and communities. There need to be more jobs for young graduates too. Photo Credit:  Three Musketeers by D.Meutia on flickr cc

These 3 Kittens want the U.S. government to create jobs by putting people to work improving roads, schools, bridges and communities. There need to be more jobs for young graduates too. Photo Credit: Three Musketeers by D.Meutia on flickr cc

Government serves a purpose for the common good. It’s time to realize the positive value of government.

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