On Buffett's Proposal

Forbes has an article on “Billionaire Warren Buffett's call last week for higher capital gains and income tax rates on those with incomes above $1 million a year...”

the author makes the case “...Buffett has betrayed his duty to those less fortunate by lending his name and prestige to an ignoble myth – that taxes targeted at the rich do not affect the middle-class and poor.  Nothing could be further from the truth.”


After asserting the rich can afford to pay more, the author gets specific...

“ Let's consider what happens when the rich pay more in taxes.  With less disposable income... there is an offsetting reduction in the amount of money and employment in the private sector. Although the rich may not notice the difference, the middle-class and poor pay the price.”

So less money about in private industry, less jobs for the middle class. Just so.

The author points out Buffett says that “People invest to make money, and potential taxes have never scared them off,” and calls this “disingenuous, if not silly. ”

Well, I think Buffett is a villain, but he is right here. We self-employed are driven by lifestyle, which is largely “pre-tax.” Sicne we plow everything back into the business, and that takes out time and money, our pretax business is out livlihood and goal anyway. The taxes can go to 95% without too much trouble, for we in business. I expect thay will. This will be a tremendous problem for people who depend on property, paychecks and pensions, but not for the self employed.

The author goes on...

“People invest to make money after tax:  the higher the tax rate, the fewer investment opportunities that can produce an acceptable after-tax return. The result is fewer investments, less wealth creation, less opportunity, fewer jobs, and more poverty.”

Yes, some do, and this is the result. But the real killer is the govt policy of “get big or get out” wherein there is a relentless governmetn oppression upon people who would start a business. There is the real problem with our economy: a failure ot respect the rule of law and a lack of freedom.

The author notes “Mr. Buffett has sheltered the bulk of his fortune from the federal death tax by putting it into several foundations that, over time, will give the money away.”

Well, yes he has hidden his wealth, but no it will not be given away. these foundations last forever becuase of the way they are structured; the exist to concentrate power in the hands of the elite. Get rid of all protections of these foundations, and you’ll see the politics and economy of USA change swiftly.

The author makes a suggestion: “(Buffett) and his wealthy friends will use their combined resources and talents to create a jobs training program that over time would replace 47 federal programs now provided by 9 federal agencies, many of which overlap and only a handful of which have assessed their outcomes. In exchange, the federal government would have to end these programs in proportion to the number of individuals served by the Buffet initiative.”

The author claims there would be savings, but misses the point. Nonthing government offers serves as any response to human needs, so having someone else do it does not advance matters.

Simply eliminate the 503c1 or whatever the charitable foundation law it, and thse people will be faced with investing those billions in the taxable market, not to have them protected by taxpayers.

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