Warren Buffett: Raising Taxes 'Will Not Change My Behavior'

By JoAnne Allen

WASHINGTON, Jan 25 (Reuters) - Increasing taxes on the wealthy would bring fairness to U.S. taxpayers across the board, billionaire investor Warren Buffett said on Wednesday, backing the tax reform that President Barack Obama proposed in his State of the Union address.

On Tuesday, Obama proposed a minimum effective tax rate of 30 percent on those who earn a million dollars or more, reviving his call for the so-called "Buffett rule," designed to prevent millionaires from paying a smaller share of income taxes than middle-class taxpayers.

Buffett published an editorial in August stating that his own 17.4 percent effective tax rate was lower than that paid by wage earners in his office. He also said wealthy people should pay more taxes.

"The question is what is fair when you have to raise multi-trillions to fund the United States of America," Buffett said in a joint interview with his long-time secretary, Debbie Bosanek, on ABC News.

"[Raising taxes] will not change my behavior. I have paid all different kinds of rates and I've always been interested in making money. I believe this should be a defining issue. Debbie works just as hard as I do and she pays twice the rate I do," said Buffett, a Democrat and Obama supporter.

Bosanek pays a tax rate of 35.8 percent on her income, ABC said. She attended Tuesday's State of the Union address as a guest of first lady Michelle Obama.

"I just feel like an average citizen. I represent the average citizen who needs a voice," Bosanek told ABC. "Everybody in our office is paying a higher tax rate than Warren."

Buffett said he does not blame Republican presidential candidate Mitt Romney or other wealthy people for paying lower tax rates than most Americans and challenged Congress to make a change.

Buffett also lashed out at assertions by some Republicans that the "Buffett rule" is class warfare, the report said.

"If this is a war, my side has the nuclear bomb," Buffett said. "We have K Street (Washington lobbyists). We have Wall Street. Debbie doesn't have anybody. I want a government that is responsive to the people who got the short straw in life."

Shortly after the proposed millionaires' surtax was first raised, Senate Republican leader Mitch McConnell told NBC's "Meet the Press": "With regard to (Buffett's) tax rate, if he's feeling guilty about it, I think he should send in a check." (Reporting By JoAnne Allen; editing by Christopher Wilson)

Comments

[Chris1962]

05:55 PM on 01/28/2012

http://online.wsj.com/article/SB10001424052970204661604577187414062083978.html?mod=WSJ_Opinion_BelowLEFTSecond

[bigotboy]

12:24 AM on 01/28/2012

Nobody seriously thinks Warren will pay more taxes do they ? He will find other places to put his money where it will do him more good, as will most of the other super rich. Back at the turn of the 20th Century when tax rates on the super rich were into the 80% range very few paid that rate. They found ways to avoid it.
As other people have mentioned, Warren can write a check to the Feds at any time for the money he thinks he should be paying. Since he doesn't write the check we know he is just blowing smoke. Rich Lefties are a lot of talk and no walk. Look at all the Obama Administration officials who were caught with bad tax returns. Were they cheating, or are they really that incompetent ?

[edg1]

08:33 PM on 01/26/2012

How about a tax rate of 60% for the wealthy when the nation is at war and 30% when we are at peace. Just think how fast we'd pull out of Afghanistan and our other foreign adventures.

[David in Dallas]

10:23 PM on 01/26/2012

Cool!!!

[HipsterCorgi]

09:11 PM on 01/28/2012

Totally.

[HKgovt]

03:28 AM on 02/05/2012

Are you aware that for the Top1% of incomes: Tax Paid / Adjusted Gross Income gives overall effective tax rate paid of 23.27%. Do the same calculation for the Bottom50% of incomes and you get an overall effective tax rate paid of 2.594%. You must multiply 2.594% by 8.969290 to arrive at 23.27%, this means the Top1% is paying a tax rate 797% higher than the Bottom50%.

Top1% Incomes $380,354 & over

Bottom50% Incomes under $33,048

Even when you shift to Top50to25% Incomes $33,048 to $67,280 Tax Paid / Adjusted Gross Income gives overall effective tax rate paid of 6.75% and Top1%'s tax rate is still 244.7% higher
Top50to25% group has 22.77% of income but pays only 11.26% of all taxes paid.

Source: http://www.irs.gov/taxstats/indtaxstats/article/0,,id=96679,00.html
See: 08in05tr.xls click first '1986-2008' for document.

Math:Top 1% tax paid / AGI reported
$392,149/$1,685,472 =0.23266
or 23.27%

Bottom 50%, tax paid/ AGI
$27,873/$1,074,514=0.02594 or 2.594%

23.266420326 / 2.59400904 = 8.969290 since 1.00 (100%) gives the same number, so
8.969290 - 1=7.969290 that is 797% higher

Top50to25% Group AGI reported
7,352,111-5,678,179 = 1,673,932

or 22.77% of all reported AGI
1,673,932 / 7,352,111=0.22768

Tax paid 1,003,639 - 890,614=113,025
or 11.26% of all tax paid
113,025 / 1,003,639 = 0.11261
Tax paid / AGI reported 113,025 / 1,673,932= 6.75% effective tax rate payed

[muzzled]

06:58 PM on 01/26/2012

Bosanek pays a tax rate of 35.8 percent on her income, ABC said. She attended Tuesday's State of the Union address as a guest of first lady Michelle Obama. You were with the 1st lady why didn't you complain that your taxes were to high?

[edg1]

08:34 PM on 01/26/2012

She doesn't think her taxes are too high. She thinks millionaires and billionaires taxes are too low.

[muzzled]

08:36 PM on 01/26/2012

her taxes are too high

[whatdoibelieve]

09:39 PM on 01/26/2012

Wow, she is pulling down over 379k! That is a sweet secretary position. Otherwise, how is she paying a tax rate of 35.8%?

http://www.savingtoinvest.com/2010/04/2010-and-2011-tax-brackets-new.html

[veryradiant]

01:12 AM on 01/27/2012

She appears to be a one percenter with the title of secretary. It sounds like any tax law changes will increase her taxes along with Warren's.

[HipsterCorgi]

06:34 PM on 01/26/2012

I don't understand all the Buffett hate here from people who are most likely not millionaires. He is sticking up for us!! And he is right. Warren Buffett simply cutting a bigger check to the IRS isn't going to fix anything. All millionaires and billionaires should be paying the SAME rate as the rest of us. Why is that so offensive to people who are paying higher rates than the wealthy?! I respect him for standing up for what is right.

[hoosier96]

05:56 PM on 01/26/2012

I WANT TO SEE YOUR SECRETARY'S TAX RETURNS!!!!

[ManforFreedom]

06:02 PM on 01/26/2012

If you did, I think you would be very surprised! The estimate is Warren's secretary makes between $200,000 to $500,000 per year. Poor secretary! How does she makes ends meet?

[muzzled]

06:59 PM on 01/26/2012

she's a 1% get her!!!!!! ahhh agggr

[edg1]

08:35 PM on 01/26/2012

No need to shout. We can hear and ignore you just as well when you type in lowercase.

[dil123]

05:04 PM on 01/26/2012

How did Buffet end up paying more taxes than Romney? Man, Romney must have accountants up the @ss if he got off only paying 13% and Buffet (who I consider the smartest man to say anything about money ever) had to pay 17%.
Wow, this is just another reason not to like Romney, anyone who would duck and dodge his taxes to this extent would do anything to make sure he and his friends wouldn't have to contribute anything to this country and the people who live in it.
Power on top of this kind of ruthlessness is just dangerous, and we don't need it.

[SFGiantsfan]

04:54 PM on 01/26/2012

Want to do the right thing...then have your company pay the Government the $1B they have been fighting for close to 10 years.

[hoosier96]

05:57 PM on 01/26/2012

Considering how it will not 'change his behavior' I don't see why not do you?

[addisonsteele]

04:45 PM on 01/26/2012

Buffett is just another rapacious capitalist.

[xtrees130]

04:05 PM on 01/26/2012

TO : Warren Buffett - Just read that you bought, via your company, Berkshire Hathaway, the Burlington Northern Santa Fe Railroad ( you already owned a 22% stake in it ) - now you own the entire railroad. The railroad is valued at 'approx.' $34 Billion dollars. Seems like a sweet deal. Rumor has it that you will now be moving OIL from Montana down to Louisiana, by train. Tell me, Mr. Buffett, is this why President Barack Hussein Obama will NOT allow the Keystone XL Pipeline?? If we had the pipeline, how many millions of dollars would you lose on moving OIL via your just recently purchased railroad??? Was the 'deal' made between you and President Barack Hussein Obama that you would 'promote' his desire to tax the rich more in EXCHANGE for his NOT allowing the pipeline to be built?? Just asking....

[EastCstOlsenGrl]

04:34 PM on 01/26/2012

Right on. Of course the MSM doesn't say a peep about this.

[goy]

04:41 PM on 01/26/2012

Do not believe in rumors, that's bad for your sanity.

[xtrees130]

03:50 PM on 01/26/2012

TO : Mr. Buffett and all the other Millionaires/Billionaires out there - You feel you don't pay enough in taxes - Fine - Sit down, write a big,fat check to the U.S. Treasury. It's legal to do - it will be accepted and you may then feel 'better' about yourself. Just stop your whinning!!!!

[SuBLiMeKiD]

05:53 PM on 01/26/2012

Your Posts are so pleasant. You really think that would solve the problem? The point is not that he COULD send a check, so could you!.. but that the Tax Code should reflect the INCOME INEQUALITY we are facing in this country today! No one should pay a lower tax rate for just moving money around while the rest of the working class pays 20-30%.. Wake up man your never going to be rich like them.. They are never going to give you their "secret"!

Your fighting for the wrong side..

[TheOtherQueen]

06:21 PM on 01/26/2012

I wonder what is your beef with making ALL millionaires pay more taxes, are you one of them? Are you in line to inherit a big chunk of cash? No? Then you have no business defending stupid ideas that serve the people that have you by the balls. The obvious difference is that you don't understand the magnitude of the money the US needs to rise every year to run the country, mostly the military industrial complex. Of course Warren is a capitalist, only he believes things should be a bit more fair to the people that got the short stick in life. BTW, did you get a long stick?

[whatdoibelieve]

03:29 PM on 01/26/2012

I don't understand Warren Buffett. He is saying one thing while living something very different. If he want to pay more in taxes, I have provided the address right here:

Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782

He is more than welcome to pay as much as he wants. He also doesn't have to take deductions on his tax return and he could have Berkshire Hathaway pay all their back taxes.

He also doesn't have to donate all of his money to a charitable organization upon his death. He could give it to the government if he feels they can better spend his money. Why do any Democrats take what this guy says seriously?

[EastCstOlsenGrl]

04:34 PM on 01/26/2012

GREAT POST.

Nothing angers me more than guys like him who have zillions in the bank account and attempt to speak for everyone in the top 1%-5%.

[TheOtherQueen]

06:22 PM on 01/26/2012

Just one question, are you in the 1%-5%? No? Then you are not intelligent.

[HipsterCorgi]

06:37 PM on 01/26/2012

He is one of THEM yet he is sticking up for US. Why on earth would that anger you? Are you one of the 1%-5% who don't want to pay the same tax rate as the rest of America?

[Brian Gilmer]

07:10 PM on 01/26/2012

That would not change the fairness of the laws.

[whatdoibelieve]

09:28 PM on 01/26/2012

No, but it would be called "leading by example." If he wants us all to pay more, lead the way. Show us you mean what you say. Otherwise it sounds like a 1%er who is pandering to the 99% with NO intention of actually doing anything about it. I don't see how he can be indignent about his secretary paying more taxes than him but he isn't willing to do anything about it.

[Picachu]

02:35 PM on 01/26/2012

The only people who really come out for lower taxes are the truly greedy who have completely renegged on their part of the bargain. When Republicans, who for the most part have dictated US economic policy since Reagan, started gutting regulations and lowering taxes there was supposed to be an economic boom that benefitted everybody including the middle class. What we have in fact seen is the biggest redistribution of wealth in history, with the rich getting more and more, and completely failing to invest in our country. The Republicans wraps themselves in the flag, but they are not patriots, they are greedy pigs, shysters, liars and hypocrites.

[redonthehead]

03:30 PM on 01/26/2012

You seem a little upset. Is it time for your medication?

[renaissancejack]

05:47 PM on 01/26/2012

You seem a little condescending...

[TheOtherQueen]

06:27 PM on 01/26/2012

You know, I disagree with you. The "greedy pigs, shysters, liars and hypocrites­" are the corporations who bought the politicians who passed those laws. Well, the politicians are too.

But here is my point, none of that is unnatural. All those people making over one million dollars would be stupid if they didn't fight for what would be best for them. What is absolutely incomprehensible are the poor and middle class folks who not only vote republican, but get extremely upset when there is talk of taxing the rich a fair share. They ACT AS IF they were millionaires as well. But they are not, they are shooting themselves in the foot and they cannot even realize it!

[sidecarman]

01:55 PM on 01/26/2012

this guy should be in prison for the crime of accumulating excessive wealth. people like this only get rich at the expense of the poor and middle class. 100% on his wealth and the wealth of people like him is necessary.

[redonthehead]

02:05 PM on 01/26/2012

You tell 'em comrade!

[LRN2WRK4IT]

02:56 PM on 01/26/2012

So what is your tax rate............ZERO!

[sidecarman]

03:08 PM on 01/26/2012

no thats buffett rate after he gets the benefit of tax deferals and stock options.

[johntykie]

01:44 PM on 01/26/2012

Asking the US Congress to vote to raise taxes on the very wealthy is very unlikely. Over two thirds of the representatives are multi-millionairs and made most of their money through insider trading while serving in congress ( an action, that we as citizens, would be put in jail for ). What we as a country should do is make congress follow the same rules that the rest of us have to follow, and not be allowed to exempt themselves from any of the rules and laws that they have and will pass in the future. If this were to become the rule of the land, we wouldn't have to remove them from office, they would leave voluntarily. What has happened to the fact that we own and run congress? They work for us. The problem is, that we have grown so lazy, that we would rather let them do what ever, just so we don't have to be bothered.