In a strange announcement this week, billionaire Warren Buffet proclaimed that Congress should find a way to raise taxes on the "super-rich" here in our country. Warren Buffet's reasoning is that to do so will help cut the budget deficit we are currently experiencing. Buffet says that in taxing the very rich, their investments will not be negatively impacted. Many investors will never shy away from a good investment just because of the tax impact. Buffett believes that higher taxes for the rich will not discourage them from investing.
In his statement he said, "My friends and I have been coddled long enough by a billionaire-friendly Congress. It's time for our government to get serious about shared sacrifice." This was written in a New York Times opinion article by Buffett. Being one of the world's richest men, Buffett said that his federal tax bill from last year was $6,938,744.
That's a lot of money to most of us. Hell, who wouldn't love to have $7 million lying around to do as we please; however, Buffett explained that $7 million was only 17.4 percent of his taxable income. I'm not sure about the rest of the America, but my taxable income is more like 33 percent, almost double what Buffett paid.
The underlying issues are that most Americans are quickly losing their confidence in the abilities of Congress and their lack of how to deal with our country's debt issues. What I think Buffett is trying to offer Congress is a chance to look at some type of action that is immediate, real and could be significant. He is offering something that would help to prevent the American people from having that doubt in our lawmakers and a feeling hopelessness.