My last post on this topic got some action, so let’s see how this one does ;). Tom Brokaw has come back from a visit with the 3rd Richest Man in the World: Warren Buffet. He was on Morning Joe this morning and what he had to say was truly astounding.
Buffet has done an informal survey of his employees and found out some shocking (at least to me) news. 15 of his 18 employees allowed him to look through their tax returns and he found that HE paid an aggregated 17% of his income while THEY paid a median of 32% of theirs. This makes his overall tax rate HALF of what his admin staff pays.
Buffet does not have an accountant do his taxes and does not have fancy tax shelters. He literally pays (on principle) exactly what congress tells him to pay. This inequity has prompted him to take action and begin speaking out for a revision of the tax code with some kind of progressive consumption tax.
Somehow some voters (and commenters of this Blog) have been brainwashed into thinking that we can’t touch the tax code to raise taxes on the richest Americans and lower taxes on the middle class because that would be some kind of “wealth transfer”. One reader actually asked last week, how are the middle class entitled to rich people’s money?
Obviously this isn’t the case. There is wealth transfer occurring, and it’s from the working class people to the rich – not the other way around. If Buffet can see that, maybe it’s time for the rest of us to open our eyes as well.