I agree with Kling — tax Buffett’s consumption, not his capital. However, if Buffett really thinks he should pay more I see no reason why he doesn’t just write a check to the Internal Revenue Service. Better yet, why doesn’t he identify his prefer beneficiaries and write them all a check for the amounts that fit his priorities.
His belief that the estate tax needs to redistribute income just converts productive capital into non-productive government consumption. Moreover, his plan to leave much of his money to charity will encourage an industry of professional advocates for Big Government. The non-profit organizations he will endow upon his death will use his money to support left-wing research and fund policy papers that recommend raising taxes, boosting entitlement spending and perpetuating the Nanny-State.
It would be interesting to see how many accountants Warren Buffet employs to make sure his tax rate is lower than his employees as he claims. Yes there are many loop holes for him to lower his rate (a reduction in tax base). However, his marginal tax rate begins at the highest; he has to actively seek the loopholes to reduce his effective rate. He is a wise businessman to realize how to reduce his expenditures, but no one (be sides himself) is twisting his arm to reduce his effective tax rate.
I think Kling was wanting to tax Buffet’s consumption rather than his savings (on the believe that for someone like Buffet, savings approximately equals income).
I’m all for moving toward a consumption tax, especially one where consumption is calculated as income minus net savings, but I don’t think this works well for the very rich.
But if Buffet is sincere about the rich paying more taxes, he should be in favor of some sort of property tax, rather than pulling up the ladder and taxing the income of people still trying to become rich.
Given his record at making money and giving it away to Bill Gates, I think it’s better that he keeps his money. I agree with Brian and will add this caveat:
Tax the secretary less, but give Buffet the difference and let him decide what to do with it. He makes much better decisions than in Washington.
I agree with Kling — tax Buffett’s consumption, not his capital. However, if Buffett really thinks he should pay more I see no reason why he doesn’t just write a check to the Internal Revenue Service. Better yet, why doesn’t he identify his prefer beneficiaries and write them all a check for the amounts that fit his priorities.
His belief that the estate tax needs to redistribute income just converts productive capital into non-productive government consumption. Moreover, his plan to leave much of his money to charity will encourage an industry of professional advocates for Big Government. The non-profit organizations he will endow upon his death will use his money to support left-wing research and fund policy papers that recommend raising taxes, boosting entitlement spending and perpetuating the Nanny-State.
Good editorial. Spot on.
It would be interesting to see how many accountants Warren Buffet employs to make sure his tax rate is lower than his employees as he claims. Yes there are many loop holes for him to lower his rate (a reduction in tax base). However, his marginal tax rate begins at the highest; he has to actively seek the loopholes to reduce his effective rate. He is a wise businessman to realize how to reduce his expenditures, but no one (be sides himself) is twisting his arm to reduce his effective tax rate.
Warren Buffet is like that kid in school who asks the teacher to assign more homework.
Re-reading the Warren Buffet thing again… Is it that Warren Buffet is not paying enough taxes, or is the REAL issue that his secretary pays TOO MUCH?
I think Kling was wanting to tax Buffet’s consumption rather than his savings (on the believe that for someone like Buffet, savings approximately equals income).
I’m all for moving toward a consumption tax, especially one where consumption is calculated as income minus net savings, but I don’t think this works well for the very rich.
But if Buffet is sincere about the rich paying more taxes, he should be in favor of some sort of property tax, rather than pulling up the ladder and taxing the income of people still trying to become rich.
Given his record at making money and giving it away to Bill Gates, I think it’s better that he keeps his money. I agree with Brian and will add this caveat:
Tax the secretary less, but give Buffet the difference and let him decide what to do with it. He makes much better decisions than in Washington.