Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

11/28/2012 (1 year ago)

Catholic Online (www.catholic.org)

In new Op-Ed piece, billionaire says that tax will not deter wealthy from making more money

In a move sure to curry favor with President Barack Obama, billionaire Warren Buffet has come out in favor of his tax increases for the wealthy in the U.S. In an Op-Ed piece in the New York Times, Buffet assures that higher taxes will not deter the wealthy from making more money.

The CEO of the conglomerate Berkshire Hathaway, Warren Buffet further argued in his article that such higher tax rates on the wealthy wouldn't deter investors from investing, or damage economic activity the way some anti-tax crusaders claim.

The CEO of the conglomerate Berkshire Hathaway, Warren Buffet further argued in his article that such higher tax rates on the wealthy wouldn't deter investors from investing, or damage economic activity the way some anti-tax crusaders claim.

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

11/28/2012 (1 year ago)

Published in Business & Economics

Keywords: Warren Buffet, taxes for the wealthy, President Obama, Congress, tax hike


LOS ANGELES, CA (Catholic Online) - Buffett says he would favor restoring the higher tax rates of the 1990s for high-income families, while also setting a minimum tax of 30 percent for people earning between $1 million and $10 million per year, and 35 percent for incomes over $10 million.

This would close loopholes that allow many people who get most of their income from investments to pay lower tax rates. For example, if such a rule applied to Mitt Romney in 2011, it would have raised his tax bill from $2 million to $4.8 million, on $13.7 million worth of income.

The CEO of the conglomerate Berkshire Hathaway, Buffet further argued in his article that such higher tax rates on the wealthy wouldn't deter investors from investing, or damage economic activity the way some anti-tax crusaders claim.

Buffet did add this as an aside: Instead of setting the cutoff point for high-income households at $250,000, which is Obama's threshold, how about raising it to $500,000 or so?

Since the median U.S. income nationwide is about $50,000, a family earning $250,000 per year seems wealthy to most Americans. People who live in expensive cities like New York and San Francisco argue that a quarter-of-a-million dollars doesn't go that far if you need to spend at least $500,000 to purchase a home in a good area.

For many families, it takes two full-time workers to pull down that kind of money, and the stress of working and raising kids at the same time hardly makes them feel affluent.

It's relatively possible to index the cutoff points for tax rates to the city you live in. But in practice that would make an already complicated tax code devilishly confusing, while inviting vast amounts of abuse.

A typical scenario would have relatively wealthy New Yorkers claiming residency in small towns in Texas.

That's why one income level fits all when it comes to tax rates. However, Obama's preference for higher taxes on households earning $250,000 is only an opening bid. Tax rates on all Americans are scheduled to go upward starting January 1, and reaching a deal to prevent that with Congressional Republicans will require some tradeoffs. An obvious one on Obama's side is raising the cutoff point for tax hikes to $500,000. Buffett has now given Obama some important cover for doing just that.

---


Pope Francis calls for your 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2014
Respect for Women:
That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lordís invitation to consecrate their lives to proclaiming the Gospel.



Comments


More Business & Economics

Is the 'Mark of the Beast' the future of money? Watch

Image of Theoretically, a unique identifier is attached to your digital wallet, could transmits payment for the groceries directly to the store.

By Catholic Online (NEWS CONSORTIUM)

Some futuristic thinkers say that in the next 20 years or so, when people go to the market, they will pick up the items they need and leave - without the benefit of paying a cashier. Sensors will identify a consumer by a mark, their way of walking or facial ... continue reading


Credit card wars: Wal-Mart sues Visa over transaction 'conspiracy' Watch

Image of Wal-Mart objects to the requirement that retailers who want to accept any payments via Visa honor all issuers' Visa-branded cards.

By Catholic Online (NEWS CONSORTIUM)

In an ongoing war over credit cards in the modern retail environment, Wal-Mart Stores Inc. is suing Visa Inc. for allegedly conspiring with banks to fix transaction fees. It's just the latest in a long, ongoing legal fight between retailers and card issuers. ... continue reading


In spite of tax revenue all-time highs - government still running in the deficit Watch

Image of Congress passed and President Obama signed

By Catholic Online (NEWS CONSORTIUM)

According to the Monthly Treasury Statement for February, inflation-adjusted federal tax revenues hit a record $1,104,947,000,000 in the first five months of fiscal 2014. It would stand to reason that the government would have partially dug itself out of its ... continue reading


'Regulated' Bitcoin exchanges planned in New York Watch

Image of Singapore has imposed a tax on Bitcoin trading and using it to pay for services, after classifying it as goods, rather than a currency.

By Catholic Online (NEWS CONSORTIUM)

In a sign that the digital form of exchange in popularity - and by extension, legitimacy, New York's financial regulator has called on firms to submit proposals to set up "regulated" exchanges for currency such as the Bitcoin. LOS ANGELES, CA (Catholic Online) ... continue reading


One, fell swoop: Italy's biggest bank to cut 8,500 jobs Watch

Image of The company is to create an internal

By Catholic Online (NEWS CONSORTIUM)

"I believe the group has turned the page," Italy's largest bank, UniCredit's chief executive, Federico Ghizzoni said. "We could have staggered the losses over several years. We decided to take them all in one year." It wasn't good news for many - Unicredit has ... continue reading


$30 trillion increase from $70 trillion between mid-2007 and mid-2013 sends global debt over $100 trillion Watch

Image of The bank is owned by 60 central banks and hosts the Basel Committee on Banking Supervision, a group of regulators and central bankers that sets global capital standards.

By Catholic Online (NEWS CONSORTIUM)

Everyone at some point seems to 'rob Peter to pay Paul' - especially international governments. During the European debt crisis, many nations borrowed money to keep their governments solvent. As a result, global debt increased by $30 trillion from the original ... continue reading


Wowza! Restaurant starts charging diners for Obamacare Watch

Image of Obamacare sounds nice, but somebody has to pay. At least Gator's Dockside is up front about it.

By Catholic Online (NEWS CONSORTIUM)

Going out to dinner? You'd better be prepared to pay a little bit extra thanks to Obamacare. A chain of Florida restaurants is tacking a surcharge onto diner's bills to help keep expenses at bay and workers on the payroll. LOS ANGELES, CA (Catholic Online) - A small ... continue reading


Time banking - where time is BETTER than MONEY Watch

Image of In a time bank, time is the money.

By Catholic Online (NEWS CONSORTIUM)

Alternative currencies such as Bitcoin and BerkShares are gaining popularity as people look for ways to escape what they see as a rigged and flawed system of monetary exchange in government currencies. However, the idea of banking time as opposed to money is also ... continue reading


Google tops Exxon as world's second-most valuable company - for a day Watch

Image of The one day-surge demonstrated the growing role of technology in the economy.

By Catholic Online (NEWS CONSORTIUM)

It was quite a day on Wall Street. Google, the world's largest online advertiser through its dominant search engine, had a higher market capitalization before falling back at the close in New York to a value of $395.4 billion compared to Exxon's $395.7 billion. ... continue reading


Bill Gates thinks poverty will be eliminated by 2035... But he's missing this one thing! Watch

Image of Bill Gates thinks the world will be more prosperous with absolute poverty for nations eliminated by 2035, mostly as a result of advances in medicine and technology.

By Catholic Online (NEWS CONSORTIUM)

Bill Gates has said that he does not expect to see anymore "poor countries" left in the world by 2035. In his third ,claiming that the world of today was better off than at any time in history and that in 20 years, it will be even more so. LOS ANGELES, CA (Catholic ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Isaiah 61:1-3, 6, 8-9
1 The spirit of Lord Yahweh is on me for Yahweh has ... Read More

Psalm, Psalms 89:21-22, 25, 27
21 My hand will always be with him, my arm will make ... Read More

Gospel, Luke 4:16-21
16 He came to Nazara, where he had been brought up, ... Read More

Reading 2, Revelation 1:5-8
5 and from Jesus Christ, the faithful witness, the ... Read More

Saint of the Day

Saint of the Day for April 17th, 2014 Image

St. Anicetus
April 17: Anicetus was a Syrian from Emesa. He became pope about 155 and ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter