Buffeting the Rich, the response

The GOP response to Buffett’s article has been interesting. He was making a policy comment. One Senator and one Representative (at least) each responded by tweeting that if he felt too rich he should send some money to the government. A spokesman for a conservative think tank said he should have talked about budget cuts as well, and claims that he misstated his tax burden. Note: that’s because the Heritage Foundation considers things like capital gains taxes as double taxation — the company pays taxes and then you pay taxes.

The only real policy comment was that Buffett didn’t mention the role taxes play in investment decisions. My take on that, and I’ll admit my MA in Econ is almost a half-century old, is that tax laws might impact the structure of a deal, or the kind of investments that take place, but none of these people got to be millionaires by saying “oh, if I make too much money it will increase my taxes, I’d better stuff it under the mattress”.

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One Response to “Buffeting the Rich, the response”

  1. Kurt Says:

    Having been a major partner in a small company that did pay capital gains and for which I also earned income and paid taxes, I feel pretty comfortable in sumamrizing “double taxation” as voodoo mathematics. You are not the company, legally, or economically. (Unless you’ve used all your personal assets as collateral, but that’s not anyone else’s fault.)

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