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The primary point of Buffett's article isn't even addressed here: most people pay a much higher percent of their income to the federal government than do the "m
by voxmatt 15y ago
The primary point of Buffett's article isn't even addressed here: most people pay a much higher percent of their income to the federal government than do the "mega-rich" (I do have to say that don't really like Buffett's term there) and, furthermore, that the economy didn't suffer one drop when the rates were more reasonable (and in fact, did much better than under the historically low capital gains rates of the last decade).
In fact, if you read this article closely, it really doesn't present an argument, it just says "I don't wanna."
- thematt 15y agoBuffett pays a lower percentage of income by choice. Meaning, he derives his income from investments that get taxed at the capital gains rate. Everyone else is free to make the same decision, but they don't. They "invest" in houses, cars and other lifestyle purchases and then rely on their daily job to provide their income...hence their tax rate being so high. Rather than punishing the rich for making smart decisions, let's instead educate the other people so they can make the same good decisions.
- justinph 15y agoWhat? Tell me how people should choose to not to get born into poverty or a family that can't afford college. You seem to think people should make their money from investment rather than production, which has little value for a society. We should encourage people to make money from actual productive work, rather than shuffling paper around. Having higher taxes on wages (actual work) rather than capital (shuffling paper) doesn't do it.
- deleted 15y ago[deleted]
- tghw 15y agoI think you're missing the point of Buffett's argument. He's not paid a huge salary, he's making the vast majority of his money off of investments, and because he invests for the long-term, it means that when he does take profits, they'll be taxed at the long term capital gains rate, which is 15%, instead of the income rate of >35%. To "choose" otherwise, he would have to go out of his way to create short-term capital gains while maintaining a long view, which doesn't make any sense.
- byoung2 15y agohe derives his income from investments that get taxed at the capital gains rate. Everyone else is free to make the same decision, but they don't. They "invest" in houses, cars and other lifestyle purchases and then rely on their daily job to provide their income...hence their tax rate being so high The average citizen making $50k a year doesn't have the cash to buy that house and car (or even the other lifestyle purchases). They have a mortgage, a car payment, and a few thousand dollars in credit card debt. You couldn't use the money used to fund those purchases to invest in something that would allow you to draw income taxed at the capital gains rate. You'd need a lot more cash for the amount of investment that would net you enough to replace a salary.
- pyoung 15y agoYou conveniently ignore the huge wealth discrepancies that allow the mega-rich the ability to derive the majority of their income from investments, rather than payroll. If you read Buffett's op-ed, his co-workers, who presumably make a good salary and are probably very savvy investors, pay effective tax rates nearly twice as high as Buffet. The only reason that Buffet and the mega-rich have a "choice" to pay lower effective tax rates is because they are mega-rich to begin with. No one is 'punishing' the mega-rich. We are asking them to pay their fair share. They derive much greater benefit from the social stability provided by a strong government than does the average person. As such, they should be required to contribute accordingly.
- mikeash 15y agoBy that argument, you might as well push for a 99% capital gains tax. After all, people invest by choice. They're free to make money by other means, or not to make money at all.