Buffett: Tax Me and My Mega-Rich Friends

[yodajazz]

Let's look at a theorectical model, for the economy. What's better for the economy, one person making 1 million a year, or 25 people making 40 thousand a year? Both total the same amount of money. One millionaire, may have 5 cars, but 25 people making 40 grand purchase have 20 plus cars. The twenty plus cars create the opportunity for greater product demand, meaning the car maker, will have to hire more people to produce the product. You can name any item, such as cell phones, food, housing, gas, clothing, etc.

Before, someone says it. I am not talking about taking all the money million a year person. I am questioning what policy the goverment should support for the best growth? In the greatest growth, the millionaire, has more investment opportunities to make money, within the same economy.

[Faldur]

Well a person making a million $ a year would pay approx. $220,000 in federal taxes. 25 people making $40k per year would pay approx. $0 in federal taxes. You tell me, which helps the treasury more?

[onmyknees]

Let's look at a theorectical model, for the economy. What's better for the economy, one person making 1 million a year, or 25 people making 40 thousand a year? Both total the same amount of money. One millionaire, may have 5 cars, but 25 people making 40 grand purchase have 20 plus cars. The twenty plus cars create the opportunity for greater product demand, meaning the car maker, will have to hire more people to produce the product. You can name any item, such as cell phones, food, housing, gas, clothing, etc.

Before, someone says it. I am not talking about taking all the money million a year person. I am questioning what policy the goverment should support for the best growth? In the greatest growth, the millionaire, has more investment opportunities to make money, within the same economy.

Well there in is the rub...isn't it? Let me tell you about wealthy people and their affect on growth...I understand it's a progressive talking point to tax the rich, but you can't get there from here if you're talking about a fairer, flatter tax system. The only way you can get to a flatter tax system is to eliminate all the loopholes and deductions, and have EVERYONE with some skin in the game no matter how much, or how little they make. Certainly those that make more pay more...but should the top 5% pay 40-50% of all the revenues, and the bottom 40% pay almost nothing? That puts the middle earners right in the squeeze.
And that one guy you were talking about that makes a million...let me tell you about him. He's the only person that as it stands now is keeping this economy from 20-30% unemployment. I don't know where you're from, but here in the east in affluent towns like Greenwich, Darien, South Hampton, Great Neck, Scarsdale, etc drive around and look for new homes being built, in fact drive around all the surrounding areas including the middle class suburbs. You won't find any.....except for those 10,000 square foot mansions. And they're being built by carpenters, plumbers, electricians, masons, landscapers, etc who are those 40K a year people you reference in your post. Ask them how they feel about rich folks.....The wealthy who spend money on new homes and cars are the only thing keeping millions of Americans from an unemployment check.

[yodajazz]

Well a person making a million $ a year would pay approx. $220,000 in federal taxes. 25 people making $40k per year would pay approx. $0 in federal taxes. You tell me, which helps the treasury more?

What I am talking about is economic growth, not taxes. However, individuals making $40k, are taxed at a rate of 15%, not 0%. Where do you get such ideas from, Faldur? I think someone is lying to you.

http://www.taxfoundation.org/publications/show/151.html

The idea I had is to look at the model if the people came with nothing, but then had a $40k a year job, vs 1 millionaire, (who also makes that amount every year). They all would likely desire or need productsI say the 25 people, would create a greater product demand, thus a healthier economy, where even the millionaire could reap greater profits. Each would want a home. Each one of those homes would contain a toilet, maybe two in some cases. But the millionaire's home is not going to have 35 toilets. It's about consumer demand. If people want something, someone will make and sell it to them. Taxes are only part of the cost of the product. Let say, for the sake of argument, the corporate tax rate is raised to 40%. Hollywood is not going to stop making movies. They might raise ticket prices, but movies will be made as long as people want to see them.

[ed_jaxon]

Anyone care to comment on this?

http://money.cnn.com/2010/09/08/news...axes/index.htm

And while you are at it....those saying Buffet should just send the check......lead the way, cut your own social security and medicare and raise your FICA and voluntarily wait till you are 73 to start drawing it. Then I will be impressed.

[trish]

Exactly. Reagan was in fact able to do the experiment. He cut taxes and cut them again. What happened? Employment fell and the deficit grew. It grew so threatening, Reagan raised taxes and reduced federal financial and environmental regulations. What happened? Deficit growth was controlled. This was significant experimental evidence that "trickle down" theory simply doesn't work. Did the evidence dissuade the true-believers? No. Bush II did the experiment again. One tax break after another was awarded to the wealthy. What happened? No job growth is what happened. We even had two wars (which usually can be counted on to stimulate an economy and create jobs) and still there no job growth and no trickle down from those high income folks. The deficit grew as he borrowed money for his wars, the housing market ballooned because the Bush appointed regulators didn't believe in regulation. The bubble burst, the wars caught up with us and before he left office Bush was forced to bail out the commercial banking system with something like 700 billion dollars of Tarp. Once again a conservative president inadvertently proved was most economists will tell you, that "trickle down" theory is bullshit.

There is less of a tax burden on those making a quarter of a million dollars and above then there has ever been over the last 70 years. And we are in deep shit because of it. Now is the time to increase revenues on those who can afford it. Now is the time to spend money on infrastructure repairs and start new infrastructure projects. Labor will never be cheaper than it is now. Right now we can repair roads, bridges, airports, power grids, communications lines etc. with inexpensive labor and at the same time create jobs. It would be stupid to wait until all cost of such projects rises. We need to collect the revenues now and implement infrastructure projects now. This will create jobs and replenish the demand for the products. Corporations have been making money hand over fist for the last two years. Record profits. If trickle down works why are they hiring? Because they restructured. They learned to get by pushing their valiant labor force to record production rates. You can give corporations as many tax breaks as you want and it won't create a single new job, except perhaps in the luxury goods market.

[Faldur]

And while you are at it....those saying Buffet should just send the check......lead the way, cut your own social security and medicare and raise your FICA and voluntarily wait till you are 73 to start drawing it. Then I will be impressed.

Ed, unlike Jimmy Buffet I am not parading around the country telling people that rich aren't paying enough taxes. I personally believe that having the top 5% of tax payers paying over 50% of the total US tax bill is unfair and excessive. You won't see me cut a check, in fact you will see me vote repeatedly for "shared sacrifice", IE flat tax.

[Faldur]

There is less of a tax burden on those making a quarter of a million dollars and above then there has ever been over the last 70 years. And we are in deep shit because of it.

It's just laughable to listen to those who pay nothing to contribute to our country spout worldly opinion of how much others should pay to cover their portion of the bill. "It's time the people riding in the wagon get out and help the rest of us push."

[trish]

It's laughable to listen to the speculations of conservatives who assume they know my tax bracket and what I personally pay in taxes. If you can't attack the message attack the messenger. That the whole pathetic strategy behind your attack on Buffet...all bluster and no substance.

There are over 36000 people in the U.S. worth more than $30 000 000.00. If we taxed each 3.33% we'd get a million dollars from each for a total of 36 trillion dollars; i.e. $36 000 000 000.00. That would make a dent in the deficit. Plus those guys will still be millionaires worth more than 29 million dollars each. They won't fucking notice it. Taxing the lower earners for 50% of their worth over ten years would make you 700 million dollars.

Now is the time to repair and maintain infrastructure. The interest rates for such projects will never be lower. It would be stupid to wait for the rates to rise. Now is when we need the jobs. Now is when it's cheap to do.

[hippifried]

Well a person making a million $ a year would pay approx. $220,000 in federal taxes. 25 people making $40k per year would pay approx. $0 in federal taxes. You tell me, which helps the treasury more?

Huh? Well, I guess if all 25 combined were making $40k... But of course that would put them all in abject poverty. So what are you trying to say here? That the poor aren't paying their fair share? The whole idea is to tax disposible income.