Warren Buffett Calls For Tax Cuts -- For Almost Everyone Except The Rich (VIDEO)

Warren Buffett proposed a further tax cut for the middle class, upper middle class and lower middle class -- essentially, everyone except the wealthy -- in an interview Tuesday with CNNMoney's Poppy Harlow, at Fortune's Most Powerful Women Summit in Washington, DC (Check out more clips atFortune).

The billionaire investor, who, with a roughly $45 billion net worth, is the country's second richest person (behind Bill Gates), also said the government should raise taxes on the richest 2 percent of the country. That particular message was nothing new: He's been saying for years that the rich need to bear a greater share of the tax burden. Buffett reiterated Tuesday that he has the lowest tax rate of anybody in his Omaha office, even despite the fact that he doesn't have a tax shelter. But his tax cut proposal was new.

"I think maybe we should cut taxes for the middle class," he said. "Upper middle class [and] lower middle class."

Taxing the rich, he said, is the best way for the government to boost its income.

"The question is, Do we get more money from the person that's gonna serve me lunch today, or do we get it from me? I think we should get it from me," he said.

Those who want to extend the Bush-era tax cuts for the wealthy, which will expire at year's end, say heavy taxes will hurt small businesses, many of which are run by wealthy individuals. Senator Mitch McConnell (R-Ky.) and Rep. John Boehner (R-Ohio) have said tax hikes for the rich would affect half of all small business income. Of course, that depends on how you define "small business."

Buffett responded to that argument by saying the government needs to close the deficit somehow, and if it doesn't tax the rich, it will have to delay paying back its debt -- which amounts to borrowing from the larger economy.

"If you get a hundred billion more of taxes -- just pick a number -- from people like me at the top, it means you borrow a hundred billion less out of the economy. Somebody's gonna come up with a hundred billion," he said. "You're taking the money from the economy either way. The only question is if you take it by borrowing or by taxes."

In August, Buffett joined Gates in asking billionaires to give at least half their wealth to charity.

WATCH the interview below:

Comments

[miriamac]

11:31 AM on 10/10/2010

What good are tax cuts when you have to send $1,000/month to the insurance cartel?

[R Davis]

01:06 AM on 10/10/2010

What he says seems obvious. So, why is it the GOP insists on stretching out the deficit by giving the rich a tax cut? The reason is simple. They've sold their souls for the contributions of the ultra-rich who are paying them to keep taxes low for the ultra-rich. Eating away at the middle class which is the engine that keeps this country running. We are standing at the edge of the abyss and the GOP seems to take solace in the idea that they will be the last to slide into oblivion.

[Dark-Star]

02:50 PM on 10/08/2010

There should be a category called "No Ducking Fuh", and this should be the first entry.

[Y3rMawm]

04:33 PM on 10/07/2010

This guy has long been a government shill. Who befitted from the bailouts? Who benefits from any additional government largess, and inside information? Warren does.

The capital outflows caused by tax increases, would sure make assets cheaper for Warren to add to his portfolio.

His father would be ashamed.

[novo organon]

04:04 PM on 10/07/2010

One has to appreciate Buffet's candor when he said: " There's class warfare, all right. But it's my class, the rich class, that's making war and we're winning."   

[Dark-Star]

02:51 PM on 10/08/2010

It isn't even the 'rich'...it's the *elite*.

And they are indeed winning the war. Too bad Thomas Jefferson isn't still around, even if he WAS a bit of a rabble-rouser.

[chuck becker]

03:29 PM on 10/07/2010

I agree with Buffet, but we need to understand the numbers and get the numbers right.  This topic is subject to massive pummeling based on greed, ignorance, and jealousy.  Who has the money, and who are these people?

Family income:
0-$50,000 struggling to make ends meet if not struggling to stay housed
$50,000-$100,000 every penny counts, there is no wiggle room
$100,000-$250,000 comfortable, bills get paid, there's money for a vacation
$250,000-$1,000,000 life is good, still have to think about where the money for college will come from
$1,000,000-$10,000,000 this is real money now
$10,000,000+ really really rich

The top two brackets are getting a FREE RIDE on the backs of the bottom four brackets (more if you count real brackets).  The top two real world brackets compromise only 0.1% of the population but control enormous wealth and generate staggering income.  Taxing them at the same rate as "ordinary frolks" is regressive and irresponsible.  Only Republican greed and Democratic ignorance and jealousy is giving the truly wealthy a free ride.

All existing tax brackets should remain as they are.  Two or more additional brackets should be added at the $1m and $10M (or similar) levels with corresponding tax rates.  This establishes a progressive tax code and closes the revenue gap in a way where anyone bellyaching about it will only be publicly embarrassing themselves.  And, the rich get to keep being rich.

[NMDAVE]

11:12 PM on 10/07/2010

Disagree. A flat tax rate is the way to go. In a Democracy we should all pay the same rate with no deductions ( just watch the rich people like Buffett squirm when they have to pay 20% or more of what they make).

[chuck becker]

11:51 PM on 10/07/2010

Well, that would be OK, too.  We just happen to have the worst of all possible worlds right now.

[Dark-Star]

02:53 PM on 10/08/2010

They wouldn't squirm for long. 20% out of our paychecks will hurt us a lot more than it will them.

[Jahli]

01:48 PM on 10/07/2010

An extraoridinary businessman with a clue.... Luv ya Warren.

[unrepentant progressive]

08:54 AM on 10/07/2010

Gates and Buffett have stepped up to the plate with respect to charitable giving and tax policy. Too bad the DINO's are weak, the GOP is bribed, and Tea Partiers are the lapdogs of the rich. This means that we'll probably keep borrowing, instead of paying, for things we want.

The simple truth is that you could tax the wealthy at far higher rates than today, and they'd still have gobs of money to invest and spend. But conservatives (who are really extremists) have set about to convince everyone that taxes are theft, and that higher tax rates will hinder economic growth, despite empirical evidence to the contrary.

This country's tax policy is alternately greedy and illogical. Hence our fiscal mess.

[chuck becker]

11:53 PM on 10/07/2010

Define "the wealthy", if you would please.  Here's where we see who's extremist and who's pragmatist.  I'll wait.

[unrepentant progressive]

01:53 PM on 10/08/2010

Well, there's certainly different levels of wealthy. I would say that $250,000 is a good point for "wealthy." $1,000,000 for "very wealthy." $20,000,000 for "super-wealthy." $100,000,000 for "mega-wealthy." And $1 billion for "uber-wealthy."

What about you? Agree? Differ?

By the way, I'm not necessarily in favor of taxing people who make under $1 million at a higher rate. But, I think, at $1 million, we need to start incrementally raising the top marginal rates and capital gains. Slowly at first, but much higher with the upper brackets.

[cvbnm67]

03:55 AM on 10/07/2010

Warren be of service to your country and buy Koch Industries.

[chuck becker]

11:56 PM on 10/07/2010

I'm sure that if Buffett offered the right price, they'd sell.  And would make the Koch's astronomically more wealthy than they are now.  Gheesh, great idea.

[cadawa]

06:42 PM on 10/06/2010

Cool.

[bessielil]

06:00 PM on 10/06/2010

If only the Congress would listen to Buffett and vote. Taxes for all, under Reagan, were higher. We cannot afford to do right unless the conservative right shuts up. If the taxes for the 98% don't expire, and the top....even one% does, I would finally buy a large screen TV and a new car to replace my ten year old one. Promise. Something tells me that Gates doesn't need anymore gear, and Buffett doesn't care about it.
The definition of 'small business' floated by the GOP is pretty murky. It's the chain stores and mall stores that get covered bemoaning the lack of customers.

[chuck becker]

11:58 PM on 10/07/2010

It's not the top 2%, it's the top 0.1%.  Until people understand that, we'll keep circling the target and never scoring a hit.  The top 2% are your sisters and uncles.  The top 0.1% are alien invaders.

[elatas]

03:02 PM on 10/06/2010

WRONG TITLE!!!!

He says the opposite. Raise tax on the wealthiest like him and cut tax for the poorest.

[elatas]

03:06 PM on 10/06/2010

Oups! My mistake. He wants to raise them for the richest even further than before Bush.WOW!

[Drash]

02:27 PM on 10/06/2010

Meanwhile Baggers, who make in 2 years what Buffett makes in a second, disagree with him.

[cgeorgan]

03:38 PM on 10/06/2010

Yes, because obviously money is the best measure of a mans' worth.

[Jahli]

01:49 PM on 10/07/2010

Because they haven't the initiative to think things through for themselves and are simply 'bots for the manipulators.

[Liberal2009]

01:32 PM on 10/06/2010

The best thing Warren Buffet can do for this nation if he really cared would be to buy Fox and change its programming.

[cadawa]

06:45 PM on 10/06/2010

Instead he bought Goldman Sachs.

[janejoad]

11:33 PM on 10/06/2010

If he really cared he would stop buying lending companies Like 21st Mortgage and Vanderbilt Mortgage. He owns a slew of Mobile Home notes and the practices of these two companies are deplorable. They are sans ethics. Just today, they called my monther in law, my daughter and my husbands fist wife, harassing them about our late payments. Even though we have entered into a sales program to sell our house, their inter-office communication is so bad, one hand doesn't know what the other is doing, and these people harass even my neighbors.
If he wants to do something, he should insist those of us who need help, get it.

[ReesieKitty]

01:11 PM on 10/06/2010

What an anomaly - a moral billionaire who actually seems interested in helping the ENTIRE country get things back in shape instead of only getting his own bank account in shape. Warren, we need more like you!

[MontanaSouth]

02:28 PM on 10/06/2010

Warren Buffet, the modern day Milton Hershey!

[janejoad]

11:36 PM on 10/06/2010

NOT. This seemingly benign gentleman owns so many lending companies that practice usury and are unethical it's disgusting. Look around the web, you'll find two of his lending companies , 21st Mortgage and Vanderbilt , to be among the worst in harassment and shady tactics.