We know how far our country has fallen from our Founder’s principled care-taking of our Republic when you realize that at least 47% of Americans pay no income tax, and worse it has been the reality for years. Half of America having no investment in their own liberty is a danger to the other half who pony-up for them. So as progressives yell for taxing the rich, who already pay 90% of the taxes, to pay more, we have Warren Buffett echoing that call. As I have said plenty of times here, the rich who want to pay more certainly can. Good grief, just write the check and send it in. In the video below, Pat Buchanan tells Buffett to write a check for $5 Billion of his $40 Billion and put it in the mail. It won’t happen. Buffett knows exactly where that money would be spent and it would not be spent to pay down the debt. Buffett, who still lives in the house and he and Mrs. Buffett bought many years ago, has to hate many of the things Congress has so readily wasted taxpayer monies on over the years. I don’t get his constant calls to tax more unless it is simply to destroy all conservative policy in this country. Perhaps he knows he is powerful enough to protect all that he owns, while the rest of us will be forced to step-up and endure the folly.
There is no doubt we need tax reform. If Buffett is serious about tax breaks for the wealthy, he should be talking about the Fair Tax or Flat Tax, and help make it happen. Democrats will NOT support either because it takes away the power of Congress. How can we take anyone seriously who refers to himself as “the mega rich” without proposing real solutions, which is fairness across the board of all income taxpayers, including those who pay nothing?
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.
A report from the Internal Revenue Service found that the rich –” and the rich are defined this way: 8,274 people with incomes of $10 million per year or more…
The 8,274 people with incomes of $10 million per year or more earned a total of $240 billion in 2009.
“Even if you confiscated every dime they earned, you would barely have enough money to cover government spending for 24 days.” In fact, this $240 billion, I mean that’s pretty close to the actual real number of budget cuts in the debt deal when you strip everything away. Now, about 25% of that money already goes to the federal government for federal income. So actually that $240 billion would run the government for 18 days.
“Another 227,000 people earned $1 million or more in 2009. Millionaires averaged taxes of 24.4% of their income — up from 23.1% in 2008.”
By the way, Mr. Buffett, start talking about our government ‘stopping the spending.’ Let’s hear your esteemed voice about that, and…ummm…an op-ed on our government ‘stopping the spending’ would go a long way to measuring your credibility on America’s fiscality – Mr. Buffett.
Major tax reform that removes the heavy hand of Congress to use income taxes as a hammer, is the only way to correct the ills of taxation. In the meantime, I also invite Buffett to write the check, drop it in the mail and get the rest of his progressive billionaire buddies to do the same.
Pat Buchanan on Warren Buffett’s Billions (video)