Buffett Says ‘Buffett Rule’ Should Apply Only to ‘Ultra-Rich’
EmailBillionaire investment tycoon Warren Buffett, who has become the unwitting mascot of President Obama’s deficit reduction plan, is less than thrilled with one of the plan’s main provisions: the millionaires’ tax, or as it’s come to be known, the ”Buffett Rule.”
In an interview with Bloomberg Television today, Buffett said he did not support the president’s plan to increase taxes on people who earn more than $1 million per year.
“It isn’t [my idea] to have the rich pay more taxes. It’s to have the ultra-rich pay more,” he said, according to The Hill. “What I’m talking about would probably apply to 50,000 people in the country.”
Later on CNBC Buffett said if it were up to him, people earning $50 million would not see any tax increases, only people who “make a lot of money and pay a very low tax rate, like me.” Buffett did not put on a number on what he considers a “very high income.”
The Buffett Rule, as President Obama has taken to calling it, is part of the plan Obama submitted to the super-committee for deficit reduction. The rule would increase the tax rate for millionaires to ensure that high income earners do not pay a lower tax rate than middle- or low-income earners. Obama dubbed this provision the Buffett Rule after the billionaire investor said there should be “shared sacrifice” in reducing the deficit.
In a New York Times op-ed last August, Buffett complained that he and his “mega-rich” friends have been “coddled” by a “billionaire-friendly Congress” because he pays a lower tax rate than his secretary.
“While the poor and middle-class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks,” Buffett wrote in the op-ed.
The day after Buffett’s piece ran in the Sunday paper, Obama cited it as proof that a “balanced” approach was necessary in deficit reduction. Less than a month later, Obama introduced hisplan deficit reduction plan which included the so-called Buffett Rule.
Buffett said today he has not “looked at all the details” of the president’s plan, but said “there is no question there will be parts I disagree with.”
UPDATE:
As ABC News’ Jake Tapper reported, the president has not laid out the specifics on what the income cut-off or the higher tax rate would be under the Buffett Rule, but officials said it would affect fewer than 450,000 taxpayers, or 0.3 percent. In a press release announcing his plan, the White House said that “people making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay.”
According to IRS reports, there were about 237,000 millionaires, or about 0.1 percent of all filers, that filed income tax returns in 2009, the most recent year for which data is available. There were about 8,000 filers who reported gross incomes of more than $10 million, the largest income group reported in the IRS documents.
Thus, under Obama’s proposed Buffet Rule, which seems to include all millionaires, about a quarter of a million millionaires would pay higher taxes. Under Buffett’s version of the rule, which he said today would not include people earning $50 million, significantly less than 8,000 people would be impacted.
White House Spokesman Jay Carney pushed back against reports that Buffett spoke out against the president’s proposed “Buffett Rule” today, saying there has been “deliberate misrepresentation for political reasons” and that what Buffett said “absolutely fits the Buffett rule as the president described it.”
Carney said the goal of the Buffett Rule was not to raise taxes on every millionaire because “many are paying an effective tax rate that is at least as high as middle American,” instead it was intended to target the “many others who are paying an effective tax rate that is much lower because of the nature of their income.”
Buffett said in the CNBC interview that the White House asked his permission before using his name. When asked if he is happy that he said “yes,” Buffett responded, “Sure.”
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I’m waiting for President Obama to clarify his position, now that Mr. Buffet has made his position clear.
Posted by: jacksmith0110 | September 30, 2011, 1:12 pm 1:12 pm
JACK— Prepare for a long wait..
Posted by: arkie vet | September 30, 2011, 1:49 pm 1:49 pm
They’ll never bring it up again. They’ll keep using his name, tho.
But if you ask them why, you’ll just be called a racist.
Get ready for the race riots, folks.
Posted by: Charlie X | September 30, 2011, 2:00 pm 2:00 pm
Hello America, and now from the buisness world we here more solutions, one from Warren Buffet quote: ” “It isn’t [my idea] to have the rich pay more taxes. It’s to have the ultra-rich pay more,” he said, according to The Hill. “What I’m talking about would probably apply to 50,000 people in the country.”"
Well lets take a look at this Idea, what Warren Should have said is that it would have been a good Idea 50 years ago to have the ultra-rich pay more, Warren says there are 50,000 ultra-rich in the U.S. wether thats true or not I wouldn’t know, I guess we can leave out the poor-rich people who have less than say $100 million in actual assets.
What Warren Buffet has not considered, that while he and Bill Gates were happily accumulating their $ thousands of Millions of dollars, is that while they were accumulating this cash, the U.S. federal goverment was accumulating $ millions of millions in real financial debt, $17 trillion a number so large it surpasses understanding, to be excact, since Warren owns more real U.S. currency he owns more real U.S. debt. each American owns some portion of this debt, the less real money you have the less your real debt. what Warren Buffet doesn’t realize is that his $50 Billion Dollar investments are simply Chicken feed compared to $17 Trillion Dollars of federal debt, in fact If we were to use all of Warrens Cash to pay on the interest, of the federal debt, it would only last for a few months. so the Idea that you can tax yourselves out of such a situation is absurd. the only real solution is for the United States goverment to declare bankruptcy and reniege on its loans. and try to get back the Billions, Hillary Clinton spent in Pakistan and Afghanistan. good luck.
sincerely Fezzy Bear
Posted by: Fezzy Bear | September 30, 2011, 2:05 pm 2:05 pm
The guy that earns 50 million is toying with his income so much he manages to get his “taxable income” down to an absurdly low level as well. Raise it on them as well.
Posted by: Secondlook | September 30, 2011, 2:07 pm 2:07 pm
What is Obama going to change the name too now that Buffet has opposed his plan??? This is soooo funny. Maybe just maybe Obama should have talked to Buffet before he named this the Buffet plan. ROFL.
Posted by: billy bob | September 30, 2011, 2:21 pm 2:21 pm
Fezzy Bear | September 30, 2011, 2:05 PM:
“… in fact If we were to use all of Warrens Cash to pay on the interest, of the federal debt, it would only last for a few months.”
============================================
Speaking of national debt interest…
Last Year of Clinton, 2000,
Total U.S. Federal Interest Payments on the National Debt for year 2000 alone = $362 Billion
Last Year of Bush, 2008,
Total U.S. Federal Interest Payments on the National Debt for year 2008 alone = $451 Billion
DIFFERENCE IN ANNUAL INTEREST PAYMENTS BETWEEN 2000 and 2008 = $89 Billion
The additional $4.9 Trillion added to the debt during the Bush years is costing the American Taxpayer an additional $89 Billion worth of interest each year since 2008.
Posted by: Forrest Gump is a Republican | September 30, 2011, 2:23 pm 2:23 pm
Betcha old Warren wishes he had never said anything about the taxes he and his secretary pay.
Posted by: retired railroad man | September 30, 2011, 2:25 pm 2:25 pm
So much for the Buffett rule……..This administration is a laugh a minute. Truly pathetic…
Posted by: Allen | September 30, 2011, 2:26 pm 2:26 pm
Why would Obozo go on national television and name the key part of his jobs plan after someone who opposes it??? It defies logic. Is he that stupid???
Posted by: billy bob | September 30, 2011, 2:27 pm 2:27 pm
From now on watch what you say Warren—It could come back to bite you in the arse!!!
Posted by: blackirishblonde | September 30, 2011, 2:43 pm 2:43 pm
In a free society, everyone should pay at least something toward the cost of government. The people who are milking the system become role model to future slackers. They think a meaningful life is collecting a check from the taxpayers every month. The truly needy will always be taken care of. We know that. Let’s get everyone else weaned off the government teat first. Besides, no thinking person would believe that a single penny of new tax revenue taken from the rich will actually reduce our debt. We need to consistently elect people who will put country first.
Posted by: s | September 30, 2011, 2:47 pm 2:47 pm
“Later on CNBC Buffett said if it were up to him, people earning $50 million would not see any tax increases, only people who ‘make a lot of money and pay a very low tax rate, like me.’ ” When someone is making a lot of money and paying a very low tax rate because their company is dodging taxes, this doesn’t carry a lot of weight.
Posted by: Publius | September 30, 2011, 3:04 pm 3:04 pm
Obama is comparing “payroll tax” vs. “capital gains tax” without elaborating and thinking that his voters are stupid. Capital gains tax applies only when you sell the stcks and you happen to make a profit. Meaning increasing the capital gains tax rate not necessarily bring more money for the government. Only way to reduce deficit is by getting rid off all the subsidies and deductions from the tax system.
Posted by: Shree Shrestha | September 30, 2011, 3:06 pm 3:06 pm
Hello America, now lets all settle down, I have it on good word from their website, that the Bank of America, is going to have a bake sale to reinburst customers, they are going to charge $16.00 for a breakfast muffin, now if they can sell at least one trillion breakfast muffins they can also pay off the federal debt. Warren just got into the wrong buisness thats all, he should have been selling breakfast muffins.
sincerely Fezzy Bear
Posted by: Fezzy Bear | September 30, 2011, 3:13 pm 3:13 pm
Oh come on now, let the whiney Republicans keep those lower taxes.
Posted by: demnme | September 30, 2011, 3:26 pm 3:26 pm
as others have said, i’m sure we’ll soon be hearing a clarification from obama on this, right? also, isn’t it funny that the figure that makes one “rich” is also the same figure put on the cost per job to be created under the new obama jobs plan…$200,000.00? the goofiness from this administration never ceases. and the defenses of the goofiness by his worshiper followers are even goofier.
Posted by: grumpopolis | September 30, 2011, 3:30 pm 3:30 pm
Warren’s backtracking in order to avoid making any donation to the treasury. Note that the article now has him in a bind. He does not mean anyone “making” a million and then estimates that the “ultra rich” group probably totals about 50,000. One assumes he is talking about direct compensation and not passive. That being the case, Warren believes anyone who “earns” $7 million or more should pay more taxes. So let’s get back to what Warren actually “earns” in direct compensation. Will he even qualify? Unlikely. Most of his “income” is in the form of passive investments that are almost always offset by losses. In other words, the real Buffett rule is take from anyone BUT him on the high side and leave him (less than $7 million direct income) alone. Now that’s more like the Warren we’ve all grown to dislike.
Posted by: wantingbalance | September 30, 2011, 3:37 pm 3:37 pm
wantingbalance, surely you understand that obama and all his ultra-rich cronies will also somehow escape increased tax liabilities, don’t you? after all, this is the same guy who was touting how the rich should feel a moral obligation to pay more while he was taking every exemption possible and who then applied his $12, 000.00 refund to next year’s estimated taxes. obama’s the living embodiment of limousine liberalism. dude’s a complete phony.
Posted by: grumpopolis | September 30, 2011, 3:43 pm 3:43 pm
I don’t think people would mind paying taxes, maybe even more of them, if they didn’t feel like a lot of the money we all pay now is wasted.
Posted by: My 2 Cents | September 30, 2011, 3:55 pm 3:55 pm
Is Warren backpedaling? I’ve heard backpedaling before and it sounds like backpedaling to me.
Posted by: newcountryman | September 30, 2011, 4:21 pm 4:21 pm
Why would Obama not get Buffet’s blessing before he namet it after Buffet??? What a rocket scientist.
Posted by: billy bob | September 30, 2011, 4:31 pm 4:31 pm
Billy Bob…You would think that the White House would have at least talked to Mr. Buffet before they started telling people what Mr. Buffet thinks. Too logical. But it is fun to watch the bumbling of this administration.
Posted by: jacksmith0110 | September 30, 2011, 4:34 pm 4:34 pm
Warren, why don’t you send a check or two to the IRS and fewer checks to Obama’s campaign fund. And by the way, shut up already.
Posted by: ray | September 30, 2011, 4:40 pm 4:40 pm
The top 5 percent earned 34.7 percent of the nation’s adjusted gross income, but paid approximately 58.7 percent of federal individual income taxes. The bottom 50 percent earned about 13 percent of total AGI, but paid only 2.7% of federal individual income taxes. So, the top 5 percent paid about 1.7 times their share, while the bottome 50% paid about 1/5 of their share. And then there are those who pay no income taxes, and get money back (EITC.) What a great system of taxation.
Posted by: jacksmith0110 | September 30, 2011, 4:41 pm 4:41 pm
Warren, why don’t you send a check or two to the IRS and fewer checks to Obama’s campaign fund. And by the way, shut up already, we’re tired of hearing your “thoughts”. Stick with preaching to your diciples.
Posted by: ray | September 30, 2011, 4:42 pm 4:42 pm
What I find funny is that the re-publi-t’rd-minions all say that Obama is instigating, “class warfare”….. LOL! …… well, it looks like some in the “upper class” have already become traiters and have taken the side of the lower class in this so-called, “war”… LOL!
Bill Gates # 1 Richest person in the USA — Says he can pay more taxes.
Warren Buffet # 2 Richest person in the USA — Says he can pay more taxes.
George Soros # 7 Richest person in the USA — Says he can pay more taxes.
Mark Zuckerberg # 14 Richest person in the USA — Says he can pay more taxes.
President Obama, a millionaire himself — Says he can pay more taxes.
Damn, these rich traiters in the so-called, “class war” … LOL! … why can’t they be just like the rest of us Re-Publi-T’rd-Minions and just say what the GOP party tells them to say: “No More Taxes!”
Posted by: Forrest Gump is a Republican | September 30, 2011, 4:52 pm 4:52 pm
Define “ultra rich”.
Posted by: newcountryman | September 30, 2011, 5:11 pm 5:11 pm
Ok, so Forrest, being mentally challenged obviously misses a point, as is usual for a Democrat.
First off, is it easier to sway 7 rich dudes or the other 400,000? I guess in your world it’s easier to sway 400,000 since in your world Republicans are stupid by default.
Great Logic.
Second, I am sure you believe that Republicans “buy” votes of the “rich” by promising them 100 and 1000 of dollars of tax breaks. Of course “The Rich” are only at best 10% of the population. You can’t win an election with 10%, and Republicans usually get 45% on the low end.
So again, according your swift logic it’s easier to “buy” votes of Millionaries with a few grand, then buy the votes of 40% of the country’s poor with food, jobs, and basically a promise of cradle to grave care.
Again, great logic.
Posted by: Lt Dan | September 30, 2011, 5:29 pm 5:29 pm
So, Mr. Buffett’s idea only applies to 50,000 uber rich people. Hmmm, I like the President’s idea better. There are many more people who make $1 million per year; they definitely should be paying their fair share of taxes.
Posted by: RohnertPark1 | September 30, 2011, 6:23 pm 6:23 pm
They just don’t get it. There is a difference between INCOME tax and CAPITAL GAINS taxes. Everyone pays according to their income tax bracket (those making a wage income at the top rate pay 35%). All people pay the same capital gains tax rate if you make $100K or $10 million. Long term capital gains tax rate is 15%. If that’s the only way you make your income, so be it. But remember, the money you put into that investment was initially taxed at the income tax rate. I just wish Obama and his minions in the media would just stop lying.
Posted by: TJ | September 30, 2011, 6:32 pm 6:32 pm
If you raise taxes do you really think the rich dems would actually pay them or just hide the money? think Turbo Timmy and Charlie Rangel….really stupid, All Obama would do is raise taxes on the super rich who simply hide their money offshore or pay a bribe to Obama to get a Waiver (you know like McDonalds and the health scam).
Posted by: You know it is true | September 30, 2011, 8:44 pm 8:44 pm
The author of this article apparently lacks a basic understanding of taxation and as a result has written a completely misleading article. The article says “Under Buffett’s version of the rule, which he said today would not include people making $50 million . . .” This is an entirely inaccurate representation of Buffett’s remarks.
The gist of the Buffett rule is to increase the tax rate that rich people pay on capital gains or dividend income, which is generally subject to a low 15% tax rate – in contrast to ordinary income rates that currently go up to 35%. What Buffett said is that the rule would not affect people who earn $50 million in SALARY, i.e., money that is taxed at ordinary income rates. He used the example that it would not a baseball player whose salary was $50 million , because that income is ALREADY subject to ordinary income tax rates (about 35%). Buffett’s remarks in the interview Buffett simply clarify that the rule would only apply to very rich people who paid a lower rate of tax – 15% – because that income is earned through dividends and capital gains. As a result, the baseball player making $50 million and the guy making $50 million in dividends or capital gains would pay the same – or similar – tax rate on that $50 million. Thus, contrary to the statement in this article, Buffett was making the point that the rule WOULD apply to people making $50 million – but only if that income would otherwise be subject to capital gains rates.
Posted by: Shannon McNulty | September 30, 2011, 9:01 pm 9:01 pm
Gee, billionaire Warren Buffett doesn’t think someone making $250K is “rich.” Who wouldda thunk it? But that won’t change Obama’s class warfare narrative . . . not even for a second. After all, we need to find successful Americans out there and punish them for making more than we do!
Posted by: prosecutor | September 30, 2011, 11:17 pm 11:17 pm
forrestgump, who cares what obama says..i’m interested in what he does. he didn’t pay more taxes…he took every exemption he could and carried over his refund to next year’s estimated taxes. explain to me how that’s not hypocrisy. or does obama believe that “moral obligations” are mandated by the government?
Posted by: grumpopolis | October 1, 2011, 7:14 am 7:14 am
THIS IS HORRIBLE FOR US AMERICANS THAT ARE LESS FORTUNATE, TO LIVE WITH THE KNOWLEDGE OF KNOWING THAT ALL THE RICH PEOPLE IN AMERICA IS THE CAUSE OF THE FALL OF THE ECONOMICS. 25 YEARS AGO YOU BARELY HEARD OF THESE MANY INSTANT- MILLIONAIRES, YOU WANT TO KNOW WHY?. IT IS BECAUSE EVERYONE WAS PAYING TAXES AND THEIR FAIR SHARE BACK INTO THE ECONOMY,, THAT WAS TAXES AND REGULATION, HEALTH RULES, ENVIORMENTAL RULES, LABOR RULES, A CLERICAL AGENDA OF WHAT WAS MAKING OUR COUNTRY WORK. BUT NOW AFTER REAGAN, BIG BUSH, CLINTONS, LITTLE BUSH, GREED SET IN, AND AMERICA WENT DOWN AND STILL IS GOING UNDER. SO AS LONG AS THEY CAN GET AWAY WITH THIS CORRUPTION, PAY OFFS, HEAD TURNING, RULE BREAKING, UNDER-HANDED DEALINGS, ESPIONAGE, THIEFT, AND A LIST THAT GOES ON AND ON, WE WILL ALWAYS BE A COUNTRY THAT LET GREED AND POWER, AND PREJUDICE RACIAL BARRIERS, THAT HAVE SET US APART. WE, THE LOW-CLASS SOCIETY, HAVE NO MORE TO GIVE, BECAUSE YOU HAVE TAKEN EVERTHING, OUR HOMES, CHILDREN, JOBS, LIFESTYLE, AND EVERTHING ELSE, WE HAVE NO MORE.. SO, WE THE UNDERDOGS AND THE POOR, WILL SET BACK AND SEE THEM , ( THE RICH AND BILLIONAIRES) ,DESTROY OUR NATION AND THEMSELVES.. PLEASE GOD, HELP US ALL, PLEASE, “GOD BLESS AMERICA”..LET’S PRAY..
Posted by: MO CONCERNED | October 1, 2011, 9:15 am 9:15 am
WE BEEN UNDER FOR THE LAST 25 YEARS
Posted by: MO CONCERNED | October 1, 2011, 9:19 am 9:19 am
Wellonly citizens of the U.S. can be taxed on income, non citizens and non residents aren’t ,so do Obama and others want all the accumation of the wealthy and the benefit to expatriate enmasse? Surprised most ultra rich are even paying at all. Some countries now sell citizenship to attract these economic units- which is what they are- and one claims not to tell any country who is a citizen, for 350 thousand – St.Kitts & Nevis comes to mind . Nice weather for a visit , english speaking. Otherwise , ir is aGibralter account hgolding a Liechenstein scount , holding a Panama account , transfer to Macao account, or some such manoeuvre.
Posted by: albe | October 1, 2011, 7:57 pm 7:57 pm
It does not matter what Buffett says or what Obama says. The Americans job Act is nothing but a sham, incresing taxes on the job producers, and giving greedy unions even more power. The Presiden’ts bill is a pack of Liberal lies.
Posted by: Tim | October 1, 2011, 9:38 pm 9:38 pm
Buffett doesn’t even like the “Buffett Rule”, but Obama had to name it something so when it failed he could blame it on someone else besides himself.
Posted by: Freedom | October 2, 2011, 9:55 am 9:55 am
ROTFLMAO ! Obama, Obama, What are you going to sell next, brother? The snake oil that you sold has bad side effects and the guy who makes the snake oil claimed he is misrepresented by YOU. Cannot run away from your own foolish game , can you?
Posted by: hopeforchange2012 | October 2, 2011, 4:47 pm 4:47 pm
This is funny… I fully support Mr. Buffett. He’s simply doing his job, yet everyone (including the President of the United States of America) seems to twist his words to say whatever it is that they want his message to be (or not be). I suppose this may be the true measure of the weight of his words. Mr. Buffett is a very smart man and, fortunately for him, he really doesn’t have to explain himself. However, no matter how futile his attempt may be, I feel that he does still attempt to fully clarify himself. Although further clarification from him means further twisting by everyone else…
Posted by: Aggie | October 3, 2011, 12:31 pm 12:31 pm
Warren Buffet should have been locked up years ago for insider trading and the money he stole, given back to the investors he stole it from.
Posted by: Delbert Lammers | October 4, 2011, 4:37 pm 4:37 pm
In the past 12 years, per a financial analyst, the top 1% garnished 93% of the wages earned in the US. The bottom 99% shared 7% of the rest of the earned income. The problem here is that the GOP think that most Americans don’t have 4 brain cells to rub together. If Americans continue to vote in, out of control Republicans, they will prove the point. Now that the GOP has completely trashed the office of the Presidency, the office will be fair game for anyone else who holds that position.
I am asking any reasonable persons out there to vote for the deliverance of this nation from the tyrannical regime know as the GOP and to beseech the help of our Creator..
Posted by: Wilda Webster | April 17, 2012, 12:29 am 12:29 am