Stop coddling the super rich

[CW&M Mom]

http://www.nytimes.com/2011/08/15/op...&smid=fb-share

I heart Warren Buffet...and we haven't had a good political slapping around here for a while...ready...set...go!!!



"OUR leaders have asked for “shared sacrifice.” But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.
These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.
Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.
If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot.
To understand why, you need to examine the sources of government revenue. Last year about 80 percent of these revenues came from personal income taxes and payroll taxes. The mega-rich pay income taxes at a rate of 15 percent on most of their earnings but pay practically nothing in payroll taxes. It’s a different story for the middle class: typically, they fall into the 15 percent and 25 percent income tax brackets, and then are hit with heavy payroll taxes to boot.
Back in the 1980s and 1990s, tax rates for the rich were far higher, and my percentage rate was in the middle of the pack. According to a theory I sometimes hear, I should have thrown a fit and refused to invest because of the elevated tax rates on capital gains and dividends.
I didn’t refuse, nor did others. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. 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.
Since 1992, the I.R.S. has compiled data from the returns of the 400 Americans reporting the largest income. In 1992, the top 400 had aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum. In 2008, the aggregate income of the highest 400 had soared to $90.9 billion — a staggering $227.4 million on average — but the rate paid had fallen to 21.5 percent.
The taxes I refer to here include only federal income tax, but you can be sure that any payroll tax for the 400 was inconsequential compared to income. In fact, 88 of the 400 in 2008 reported no wages at all, though every one of them reported capital gains. Some of my brethren may shun work but they all like to invest. (I can relate to that.)
I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.
Twelve members of Congress will soon take on the crucial job of rearranging our country’s finances. They’ve been instructed to devise a plan that reduces the 10-year deficit by at least $1.5 trillion. It’s vital, however, that they achieve far more than that. Americans are rapidly losing faith in the ability of Congress to deal with our country’s fiscal problems. Only action that is immediate, real and very substantial will prevent that doubt from morphing into hopelessness. That feeling can create its own reality.
Job one for the 12 is to pare down some future promises that even a rich America can’t fulfill. Big money must be saved here. The 12 should then turn to the issue of revenues. I would leave rates for 99.7 percent of taxpayers unchanged and continue the current 2-percentage-point reduction in the employee contribution to the payroll tax. This cut helps the poor and the middle class, who need every break they can get.
But for those making more than $1 million — there were 236,883 such households in 2009 — I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more — there were 8,274 in 2009 — I would suggest an additional increase in rate.
My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice"


I did the bolding.

[434Teresa]

I saw him on tv the other night talking about this...I do think they need to tax the rich more and leave us lower class folks be. They tax the crap out of my hubbies check but because we have kids we get it back at the end of the year but soon I know that will not be the case for us becasue kids grow up.

Not only does his check get taxed we pay lots of food tax,clothing tax,wheel tax,land tax and ect druing the year..They are taxing us to death..

[fungirl2727]

I saw him on tv the other night talking about this...I do think they need to tax the rich more and leave us lower class folks be. They tax the crap out of my hubbies check but because we have kids we get it back at the end of the year but soon I know that will not be the case for us becasue kids grow up.

Not only does his check get taxed we pay lots of food tax,clothing tax,wheel tax,land tax and ect druing the year..They are taxing us to death..

They tax my hubby checks like crazy too! Thank goodness we get a decent tax return at the first of the yr.

[sns4063]

I think Warren Buffett should put his money where his mouth is and cut a huge multi-billion dollar check to the feds as a donation. He can even go here for info on how to do it: Gifts to the United States Government: Questions and Answers: Financial Management Service Until then, I couldn't care less what he says.

[mbromberg545]

I may be in the minority on this, but I don't think they should tax the super rich more. I think that there should be a flat tax rate across the board -everyone should pay "x" percentage of their income. It shouldn't matter if you make $20000 or $200,000. That's my opinion-I know it will never be that way, but I feel that it would make the most sense.

Go ahead-I'm sure I will get some people calling me crazy.

[aimeebee]

I think Warren Buffett should put his money where his mouth is and cut a huge multi-billion dollar check to the feds as a donation. He can even go here for info on how to do it: Gifts to the United States Government: Questions and Answers: Financial Management Service Until then, I couldn't care less what he says.

I wouldn't mind if he donated a few bills, but the choice is his to make. But, why shouldnt his tax burden be more equitable? Middle and working class people don't have a choice, the taxes are removed before they ever see their paycheck. It makes no sense to invalidate his points because he hasn't chosen to gift the government. Why should the mega rich be given all these loopholes at the expense of those less fortunate? If taxes were voluntary, very few people would be donating 30 or 40 percent. Why would Buffet do that when he obviously does a much better job of managing his money than the government does?!

[melodyjg]

I may be in the minority on this, but I don't think they should tax the super rich more. I think that there should be a flat tax rate across the board -everyone should pay "x" percentage of their income. It shouldn't matter if you make $20000 or $200,000. That's my opinion-I know it will never be that way, but I feel that it would make the most sense.

Go ahead-I'm sure I will get some people calling me crazy.

Nope I agree with you!

[sns4063]

Why would Buffet do that when he obviously does a much better job of managing his money than the government does?!

Exactly! Why should people keep throwing money at a huge problem and expect it to fix itself or just go away? That's exactly what the politicians in control right now are wanting to do-not with their money, but with ours. Taxing more (no matter who you want to tax) is never the way to increase revenue in the long run. Simple economics.

[meggers]

I think Warren Buffett should put his money where his mouth is and cut a huge multi-billion dollar check to the feds as a donation. He can even go here for info on how to do it: Gifts to the United States Government: Questions and Answers: Financial Management Service Until then, I couldn't care less what he says.

Consider yourself repped.

I may be in the minority on this, but I don't think they should tax the super rich more. I think that there should be a flat tax rate across the board -everyone should pay "x" percentage of their income. It shouldn't matter if you make $20000 or $200,000. That's my opinion-I know it will never be that way, but I feel that it would make the most sense.

Go ahead-I'm sure I will get some people calling me crazy.

Nope I agree with you!

Yeah. Why should the rich have to pay a higher percentage rate? They already pay more cause they make more. What's fair about making them pay 40% while someone else pays 10%?

If they closed the loopholes with a flat tax, we'd see a remarkable change.

Regardless of what is decided though...it doesn't matter one bean how much anyone pays as long as politicians are up there wasting & LOSING it!

[Lev8mysoul]

I may be in the minority on this, but I don't think they should tax the super rich more. I think that there should be a flat tax rate across the board -everyone should pay "x" percentage of their income. It shouldn't matter if you make $20000 or $200,000. That's my opinion-I know it will never be that way, but I feel that it would make the most sense.

Go ahead-I'm sure I will get some people calling me crazy.

Well, I must be crazy as well then because I agree with you. The wealthiest 1% of the population earn 19% of the income but pay 37% of the income tax. The top 10% pay 68% of the tab. Meanwhile, the bottom 50%—those below the median income level—now earn 13% of the income but pay only 3% of the tax. I'm among that 50% that pays very little, but instead gets a big fat refund at the end of the year because of all the deductions. Though I would absolutely hate losing that nice refund every year, I would accept it based on my feeling that ALL should be paying their fair share.