Al, > So it's a scam on his part to cause others (but not him) to pay more taxes? Why?
The question here isn't whether Buffett or his fellow billionaires can afford the higher taxes. Clearly they can.
The question is what unintended consequences higher taxes will have.
I already pointed out one such consequence. Buffett himself will just reallocate his investment funds. Most other investors, especially managers of huge funds, will do the same thing. What do you think that will do to the stock market?
(Now maybe you think the stock market could use another correction, and I would agree to an extent. But Buffett doesn't mention that possibility at all. All he does is point out economic trends over the past three decades. I get his point, but his generalizations border on being misleading.)
Another problem is that the rich in America already pay half the income taxes. And only half of America pays 100% the income taxes. The exceptions, of course, are FICA taxes, but that's a regressive tax by design.
Finally, tax revenue from the rich is notoriously volatile. It's a big cash cow in times of economic prosperity, but we've grown way too reliant upon it. In times of economic hardship, that money disappears. It's happened in every rich "blue" state in the union, and it's happening to the federal government.
The solution, IMO, is not to make the progressive tax curve sharper. Rich guys like Buffett will just reposition himself, then continue to act like he isn't taxed enough. THAT'S the real scam here.
The real solution is to stick to the notion of "shared sacrifice" and spread the pain everywhere. Don't tell me that the middle class here in America can't afford it, and don't tell me that those who are dependent on a government "fixed income" can't afford it, either.
Whatever happened to "Yes We Can"?
Tenchusatsu |
