Author Topic: Buffett's latest Op-Ed in the NYT on taxes  (Read 21035 times)

twacowfca

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Re: Buffett's latest Op-Ed in the NYT on taxes
« Reply #80 on: November 27, 2012, 06:26:22 AM »
this one is easy. he obviously thinks he will get more bang for his charitable buck by helping the Least fortunate among us. by and large they are not residents of the United States.


Realize that very few people were snared by the top  bracket in the 1950's and 60's.  It wasn't until the upper middle class began to reach that level that tax rates started to come down. 

The  Obama administration controlled both houses of congress with a fillibuster proof majority during the first half of his first term.   If soaking the rich were a priority, this could have been accomplished easily without meaningful opposition then.  Instead, the congress extended the Bush tax cuts and threw in two incredible goodies, the one year zero estate tax and the unlimited rollover of 401K's and IRA's to Roth accounts --- and then justified this by saying that they had no choice but to do this because the republicans wouldn't agree! 

Obama's base of support is the very well off, (although less so than before the last national election), the more educated, those employed by the government (this is now where most union support comes from) and those dependent on the government for handouts.   My prediction is that once all the Saul Alinski posturing runs its course and the Republicans are painted as the party of the rich, there will be very little change in the tax code.

Paradoxically, first and second generation immigrants, the overwhelming part of the democrats' base that cuts across socioeconomic lines and is more hard working than the average American, are not keen on progressive taxation because that is an impediment to getting ahead in the land of opportunity.  ???
« Last Edit: November 27, 2012, 08:21:10 AM by twacowfca »


benchmark

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Re: Buffett's latest Op-Ed in the NYT on taxes
« Reply #81 on: November 27, 2012, 09:17:04 AM »
Paradoxically, first and second generation immigrants, the overwhelming part of the democrats' base that cuts across socioeconomic lines and is more hard working than the average American, are not keen on progressive taxation because that is an impediment to getting ahead in the land of opportunity.  ???

Interesting observation. Agreed on immigrants are more hard working than average american, but i think they tends to vote democrats because they are often the ones benefits from the social safe net, as most of them are low income.

returnonmycapital

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Re: Buffett's latest Op-Ed in the NYT on taxes
« Reply #82 on: November 27, 2012, 09:27:28 AM »
I think Buffett is also making a statement with regard to management compensation practices today. Not long ago, CEO compensation was 20-30 times the average wage. Today it is closer to 200-300 times. Perhaps some of the minimum tax rates for the "management" bracket will correct for this outsized increase in compensation relative to the average wage.

Do not think that a strong and perhaps even growing middle class doesn't matter. Social unrest comes at times of wide disparity. And social unrest is the real danger.

SouthernYankee

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Re: Buffett's latest Op-Ed in the NYT on taxes
« Reply #83 on: November 27, 2012, 09:35:48 AM »
If the amount of money the Treasury confiscated from their citizens for the year 2009 was able to balance the budget for a prior fiscal year (2004), is that proof that spending is the problem, as opposed to the rate of taxation? I do understand that entitlement spending will rise every year with an increased number of retirees, inflation, COLA, etc. Of course, those increases would not result in TRILLION$ deficits so soon.

returnonmycapital

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Re: Buffett's latest Op-Ed in the NYT on taxes
« Reply #84 on: November 27, 2012, 10:00:25 AM »
Healthcare spending is 17% of GDP in the US. Just about every other 1st world country with universal healthcare (most even have public/private) spend only as much as 10% of GDP. This is going to sound nuts but shouldn't the discussion in the US be about how to regulate the healthcare industry? If healthcare is as much a right as economically affordable electricity, education, transportation infrastructure, should it not be on the table?

The argument that the pharmaceutical industry will not innovate if drug prices are regulated is likely not fair. This is akin to the argument that "I will not try if my taxes rise." Europe's pharma industry does very well, even with most of its sales from outside the US.

Doctors' pay: in Canada, my GP (general practitioner) makes $450,000 per year. A specialist/surgeon does close to $1 million. And still we allocate only 10% of GDP to healthcare.

My argument is not a general comment about the irresponsibility of government and its spending. This group is no doubt leaps and bounds more responsible than the average American/Canadian. But the average, which is by definition the majority, chooses who is in charge and the majority will always accept a handout if the cost is a simple tick-mark on a ballot. Like Benjamin Franklin said: "Would you persuade, speak of interest not of reason."

SouthernYankee

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Re: Buffett's latest Op-Ed in the NYT on taxes
« Reply #85 on: November 27, 2012, 10:45:14 AM »
The United States Constitution sets up the rules for how a budget is passed. Any bill that spends money must originate in the House, as far as I know. The House passed a budget, meaning those members are on record regarding how the budget should look. The majority of those members were just re-elected to office, and the same party controls that body.

The Senate, on the other hand, has not held a vote on that bill passed by the House. For some reason, the person (and his party) who controls that body will not let that bill come to the floor to be debated and/or voted on. Yet, both parties claim to be acting in accordance with the law, and both parties are equally blamed. The majority of those members were just re-elected to office, and the same party controls that body.

Perhaps Mr. Buffet should write an opinion piece dealing with the rules of the institution empowered to collect those taxes he wants them to collect. After he does that, the side that opposes him may be more receptive to his proposals.

CassiusKing1

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Re: Buffett's latest Op-Ed in the NYT on taxes
« Reply #86 on: November 30, 2012, 01:40:45 PM »
One basic question: Why should my income determine my contribution to our government?

Since a single mother of two surviving on $25K a year in income, would find it far more difficult to come up with $5K in taxes, than a single person making $100K and having to come up with $20K in taxes if you went solely by a flat tax.  Coming up with that $1000 in rent would be pretty damn hard.  A regressive tax regime is far from equitable!  Cheers!
Just like in every aspect of life, you take from the responsible, self sustaining to support the unaccountable and irresponsible.