Warren Buffett Calls for “Minimum Tax” on Wealth
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One of the world’s richest and most successful investors has reiterated calls for a so-called Buffett-tax, or a minimum tax rate on millionaires, arguing that higher taxes would not stop the wealthy from investing.
In a New York Times Op-ed, Buffett, who has a net worth of $46 billion, advocated that taxable income between $1 million and $10 million should be taxed at a minimum rate of 30 percent, and income above $10 million should be taxed at 35 percent.
One of the world’s richest and most successful investors has reiterated calls for a so-called Buffett-tax, or a minimum tax rate on millionaires, arguing that higher taxes would not stop the wealthy from investing.
In a New York Times Op-ed, Buffett, who has a net worth of $46 billion, advocated that taxable income between $1 million and $10 million should be taxed at a minimum rate of 30 percent, and income above $10 million should be taxed at 35 percent.
His column was published yesterday, just as Congress returns from a holiday recess to resume negotiations over the fiscal cliff which includes automatic spending cuts as well as the expiration of Bush-era tax breaks for both the middle class and the wealthy.
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Arguing that the minimum tax is necessary “right now”, Buffett also said he supports President Barack Obama’s proposal to eliminate tax cuts for high-income earners, although he would set the cut-off at $500,000 a year, rather than the $250,000 threshold advocated by the President.
Citing the recently published Forbes list of wealthiest individuals in America, Buffett noted that the collective wealth for America’s richest 400 had grown to $1.7 trillion this year, more than five times the $300 billion total in 1992.
“In recent years, my gang has been leaving the middle class in the dust,” he admitted.
Buffett said:
[quote]Never did anyone mention taxes as a reason to forgo an investment opportunity that I offered … So let’s forget about the rich and the ultra rich going on strike and stuffing their ample funds under their mattresses if – gasp – capital gains rates and ordinary income rates are increased. The ultra rich, including me, will forever pursue investment opportunities. [/quote]
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According to Forbes, the tax rate paid by the 400 highest incomes in the United States also fell from 26.4 percent in 1992 to 19.9 percent in 2009.
Buffett wrote:
[quote] We can’t let those who want to protect the privileged get away with insisting that we do nothing until we can do everything. [/quote]
Read Warren Buffet’s Full Op-ed Piece in the New York Times.
