aceventura3

We been through this in more details in another thread. But as Buffett blasts our tax system, he takes full advantage of it. In 2007 his net worth increased somewhere in the neighborhood of $10 billion (using round numbers). He paid no tax on that increase in his wealth. He pays himself a modest salary, which is taxed like the rest of us. The rest of his income most likely comes from sources outside of his company and is immaterial relative to his wealth. His company pays no dividends and never has, no taxes paid. He does not sell any shares in his company and never has, no capital gains taxes. He is going to leave his billions to charity when he dies - no death taxes. However, he can live whatever lifestyle he chooses, he owns a private jet rental company, all travel is company paid. He is like a rock star and can get whatever freebies he wants in exchange for appearances - generally not taxed. He owns Dairy Queen - life time supply of soft-serve ice cream, etc., etc., etc., if he wanted to pay more taxes he could.

I am not a specific advocate of any particular plan at this point. I just think taxing a persons labor, savings and investments is wrong and that the right thing to tax is consumption or the usage of certain government services. If a person lives like a billionaire let them be taxed like one. I think in a consumption based tax system it can be set up to minimize the impact on the consumption of basic needs like food, heat, medical, etc. But on the other hand if a person is going to spend $80,000 for an SUV with money from some un-taxed spource (i.e. - illegal activities) perhaps they should pay accordingly.

People who are already "rich", generally want to stay "rich". Aggressive business people generally want to limit competition. Policies designed to help "rich" people stay "rich" and restrict competition in the market are not good for people who want to become "rich". Buffett can take the position of enjoying his wealth and take populist positions while not risking anything. If he really believes what he says, he can write the IRS a check anytime he wants. In fact taking populist positions is good for his businesses - he wants people to buy more Coke, he doesn't want them to make competing bids for GE preferred stock.

__________________
"Democracy is two wolves and a sheep voting on lunch."
"It is useless for the sheep to pass resolutions on vegetarianism while the wolf is of a different opinion."
"If you live among wolves you have to act like one."
"A lady screams at the mouse but smiles at the wolf. A gentleman is a wolf who sends flowers."