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I agree that rich benefit more from the status quo than the poor. That's part of why I'm not bothered by the fact that the rich pay a disproportionate (mathema

I agree that rich benefit more from the status quo than the poor. That's part of why I'm not bothered by the fact that the rich pay a disproportionate (mathematically speaking only) share of the taxes. Plus, a rich person can give up a third of their income whereas a poor person couldn't. What I'm saying is that it doesn't seem true to say the rich aren't paying their fair due. If you think that, then please answer what percentage of federal taxes do you think the 1% should pay and why would that be more fair than what they currently pay?

jfoutz 9y ago
if i could wave a magic wand, taxes would be strictly progressive. I understand the difference between income and capital gains, but i find Buffet's comments about 'lower rate than my secretary' frustrating. I would support Paul Ryan's original promise that 'you can file your taxes on a postcard'. With the caveat, every other person and corporation also files their taxes on a postcard. This, of course, strips a fantastic amount of subtlety and control. Subsidize what you want and tax what you don't is standard tax policy. On the other hand, i prefer scheme to c++. so simple as to be completely transparent is better than fabulous complexity. But, it turns out that's not a particularly popular world view.
- ImSkeptical 9y ago
  Buffet's comments are just nonsense though. He doesn't pay a lower rate on capital gains tax than his secretary does. Buffet is comparing federal income tax rate to capital gains tax, that's comparing two different things, like if I said I paid more in sales tax than the coupon rate on your savings bonds - maybe that's true, but so what? The reason why capital gains are taxes less includes things like you were already taxed on the money when you earned it before investing it so the capital gains tax is the second time you're getting taxed on that money, and that capital gains tax affect the risk to return ratio of investments. In other words, if you are taxed on capital gains more that diminishes the potential gains of your investments, while leaving your potential losses alone. If the balance of risk to reward shifts too much towards "risk" then investments will fall and the whole economy will suffer. I agree with you that our taxes should be simpler.

jfoutz 9y ago

if i could wave a magic wand, taxes would be strictly progressive. I understand the difference between income and capital gains, but i find Buffet's comments about 'lower rate than my secretary' frustrating. I would support Paul Ryan's original promise that 'you can file your taxes on a postcard'. With the caveat, every other person and corporation also files their taxes on a postcard. This, of course, strips a fantastic amount of subtlety and control. Subsidize what you want and tax what you don't is standard tax policy. On the other hand, i prefer scheme to c++. so simple as to be completely transparent is better than fabulous complexity. But, it turns out that's not a particularly popular world view.

ImSkeptical 9y ago
Buffet's comments are just nonsense though. He doesn't pay a lower rate on capital gains tax than his secretary does. Buffet is comparing federal income tax rate to capital gains tax, that's comparing two different things, like if I said I paid more in sales tax than the coupon rate on your savings bonds - maybe that's true, but so what? The reason why capital gains are taxes less includes things like you were already taxed on the money when you earned it before investing it so the capital gains tax is the second time you're getting taxed on that money, and that capital gains tax affect the risk to return ratio of investments. In other words, if you are taxed on capital gains more that diminishes the potential gains of your investments, while leaving your potential losses alone. If the balance of risk to reward shifts too much towards "risk" then investments will fall and the whole economy will suffer. I agree with you that our taxes should be simpler.