Straight from the horse’s mouth. And by “horse,” I mean the third-richest man in the world and the world’s most successful investor. According to The Washington Post, Warren Buffet believes that the rich and mega-rich should pay a larger share of taxes in the United States. Currently, the tax rate on investment gains is 15 percent, and because the very rich make most of their money by simply investing their current money, they pay a relatively small amount of taxes in relation to their wealth.
Although an increased tax on the rich would only produce a relatively small amount of income in comparison to current tax revenue, every little bit adds up. Many politicians decry small cuts and revenue-generating sources as “not enough,” but when they are added together the result can be a game-changer. Several billion extra dollars per year in taxes combined with well-tailored spending cuts could quickly make the government a more efficient and more sustainable beast. However, if politicians continue to spend money faster than it comes in, there will be no real solution.
Perhaps Warren Buffett’s invitation for more taxes will help to quell the demonization of wealthy citizens. The popular social theme of imagining the most successful people in our country to be planning the downfall of their homeland for personal gain is not productive, in that it discourages hard work and innovation. We should encourage our millionaires and billionaires to shoulder the same burden that the rest of us do, and then we can work our way back to the top together.