I don't know if he is trying to increase his image, or if there is another end game that he is after.

He tried this one a few months back, and I guess after enough people ignored his faint try at looking like a "regular guy" he is trying again.

Now his request is that there are 2 new brackets added to the current tables.

For over $ 1M and over $ 10 M in annual income that also includes dividends and capital gains ( note the lack interest on this list ).

From the Op-Ed
I love how he talks in terms of percentages, but leaves off important items like the source of the income, and the fact that SS has a 6.2% ( actually 4.2% this year ) rate until $106,800. After that, no SS is collected. Of course if you make 500,000.00, your effective SS tax rate is ~ 1%, so the percentage game is a skewed game. Add in he does not have a large W-2 for the year, but his 1040 line 34 is large due to interest income ( not a lot of dividends or capitol gains ).

Here is a hint at him admitting that his income is a bit different than what the comparison people in the office have for income
Really, if you have a W-2 income source, you pay a lot more ?
Notice how his Op-Ed is void of comparing the office workers average 36% tax to this type of person...

This one kills me, he talks in terms of percentages for the majority of the article, but in this quote, leads the reader to infer he is talking about percentage, where he is talking about himself, he pays "practically nothing in payroll taxes" in terms of the total dollar amount, as most of his income is not on his W-2.
His solution to the problem ( which has little or no impact on the percentage of taxes he pays ):
Notice the lack of the word Interest in his solution.
The only mention of interest in the Op-Ed is Carried interest, which he is not subject to. This is generally a hedge fund which his investments are not.

If Warren Buffett wants to be taken serious on this, why does he not suggest the tax method some European countries use, an annualized tax on his net worth or as 1 plan in DC had it, capitol gains, dividends and interest are all considered income just like a W-2, so his entire income for the year is taxed at these new higher rates ( bet that would make his $ 6M in federal taxes look more like $ 40 M ).
If he would offer this as the solution, I would take him serious.
With the current thinly veiled attempts of looking like a "regular guy" he is only playing to those who this would not touch in a long time, if not ever.
This is a way of driving a wedge between the sections of the population, to keep them at each other throats, so we ignore what Washington DC is doing.

Warren showing his discount cards in his wallet while sitting in his private jet...that goes a long way, save 15% on items he purchases at a store, while spending $ 6,000 / hr to operate a private jet.

Want to help increase tax revenues, stop using your discount card. This will increase the sales taxes you pay, and put more money in the bank for a company to pay taxes on.

 

He could also stop donating millions to the Bill Gates Foundation to get a writeoff, and donate it to the government instead.

 

Excellent post sscully.

Unfortunately, many Americans will fall for his P.R. move. I'm not buying that he feels the need to pay more.

You and I both know that anyone can voluntarily pay more income taxes.

 

Something else to consider is that all of his income is from dividends, which are paid from companies that have already paid taxes on that money. His taxes are capital gains which are capped at 15%. That is 15% on top of whatever percentage the companies paid on that money.

 

Actually the article from the last time he tried this, had a good chunk of his annual income as interest, the federally excluded type.
There is still a good amount that is W-2, Capitol gains and dividends, that cause him to get to ~ $ 6M in taxes paid, out of the $ 30M + he makes every year.

This is a wet thumb from his 17% effective tax bracket against some $ 6.x M in taxes paid.
What does that do to his Social Security Tax ETR ? ( 4.2% for the 1st $ 106K and the remainder $ 29.9M + is nothing... ).

This stinks of the same exclamations as some actors, that said they were leaving the country if GW Bush got elected....

 

People like Warren Buffet need to remember America's problem isn't an income problem, it's a spending problem. It's hard to explain this to someone like Buffet who is semi-fiscally conservative yet socially liberal. America has 'bellied up to the bar' for years and now the bills are coming due. And it's going to cost more (interest) to pay those bills.

 

Did you guys see where he paid like $5 Billion for some Bank of America shares or something like that? I only heard it in passing on the television yesterday. Didn't catch it all but they were talking about how he spoke to Obama on the phone and then 2 days later Buffett basically bailed out BoA so they didn't have to lay off a bunch of workers. Haven't really had time to look into the story myself though. I think I saw it on the OReilly Factor. Like I said, hadn't had time to check it out for myself so don't crucify me if I am wrong lol.

 

I heard that yesterday. BoA has been in trouble because of foreclosures. This was essentially a bailout from Buffet, as you said. He and Obama are friends.

 

There is no better way to explain it in real terms.

 

http://www.reuters.com/article/2011/...77N4J420110825

 

Thanks for digging up that URL, I had not had a chance to do it yet today.

It is an interesting read, that Buffett is replacing the the caliber of people that pumped cash into the market after the stock crash of 1929.
Thing is, these people were against The New Deal. Seems now, this type of person is for The New Deal ver 2.0 ( or is that 5.0 by now ? ).

 

everyones corrupt, darn!

 

Not necessarily, but this shows an end game that is not obvious yet.
Guess we will have to see what Warren is up to.

might be prep'ing himself to run on the ticket with Obama in 2012, replacing Joe the VP.
Without batting an eye lash, he could add 50% to the reelection bank role.

 

People who complain about the cap on Social Security withholdings need to remember that the withholdings are capped precisely because the payback is also capped. I'm fine with removing the cap on withholdings if they also remove the cap on benefits. The withholdings are done for the sole reason of paying the benefits -- so it is ludicrous to remove one but not the other. Social Security withholdings are technically not a 'tax' in the normal sense; rather, they are deductions similar to what you might elect to divert into a 401k plan, with the exception that you don't have a choice of whether or not to participate in the case of Social Security.

 

And this is why I think at any rich person who claims they want to pay more in taxes is being disingenuous. If they wanted to pay more in taxes they could. Unfortunately they control the media and can say whatever they want and we can not talk back. The first thing I would say is, "If you want to pay more to the US government then pay more to the US government. If you and your wealthy buddies all want to pay more then go ahead and do it. That way the government can have as much money to spend as you feel is necessary." What they are attempting to do is point to their statement and say, "See I want to pay more in taxes. All of you who oppose this are the people keeping the government broke." The problem is we could give the government a quadrillion dollars and it would still have a deficit. They can not control their spending and until we stop them from deficit spending they will continue to do it. They will spend on things we don't need or want.