Warren Buffett says he knows the biggest challenge President Obama will be facing in his second term: Congress.
Though the billionaire investor says he thinks Congress is the most major problem Obama will have to cope with in his second term, he’s confident the country will overcome lawmakers’ poor decision-making.
“What is right about America just totally dwarfs what’s wrong with Washington,” Buffett told CBS News in a recent interview.
The Oracle of Omaha has a history of criticizing lawmakers. During the fiscal cliff debate, Buffett urged Republicans to “put country before party” in an aim to reach a deal and prevent $1.2 trillion in automatic tax hikes and spending cuts. Congress and President Obama came to an agreement at the last minute to avert the cliff.
In 2011, Buffett also tried to influence Washington through a proposal to raise taxes on the super rich such that they would pay a higher tax rate than middle class Americans. The plan, dubbed “the Buffett Rule,” ultimately failed in the Senate.
Buffett addressed another issue facing Washington during the CBS interview: The national debt. Republicans leaders have said they will only raise the nation’s debt ceiling in exchange for promises to reduce the debt through major spending cuts. If Congress does nothing, the U.S. could lose its ability to meet its financial obligations by mid-February, according to a report from the Bipartisan Policy Center.
“It is not a good thing to have it going up in relation to GDP,” Buffett said in the interview. “The debt itself is not a problem.”
Hat tip: Business Insider.