Looking for Answers

“My dear rich citizens, We bailed out many of you, saved your well-being from disaster that, between us, many of you helped to create. But we need your help now. Not a lot…a little, like 3%. We understand that you need to make a living too.”

Yachts of the super rich
Give them a break!

I wrote a letter to our rich citizens January 11:

“My dear rich citizens:  We bailed out many of you, saved your well-being from disaster that, between us, many of you helped to create.  But we need your help now.  Not a lot…a little, like 3%.  We understand that you need to make a living too.” …

You can read the full article of January 11 here:

http://democracyinactionblog.com/2011/01/19/to-american-citizens-who-are-better-off-than-98-of-us/

Below are some excerpts from the article in the NYT by Warren Buffett:

Stop Coddling the Super-Rich

By WARREN E. BUFFETT

Published: August 14, 2011

It’s time for our government to get serious about shared sacrifice.

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.

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.

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 an aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum.

Income inequality.
Wealth redistribution.

Many (super rich) 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.

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.

You can read the full article here:

http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html?_r=2

Also I watched the Charlie Rose interview with Warren Buffett.

http://www.charlierose.com/view/interview/11845

I have only one question to all of you:

Over 80% of Americans support a tax increase for the super rich.  So why are the Republicans dead set against it?