Wednesday, August 17, 2011

Why Warren Buffett is right

Warren Buffett has recently called for millionaires and the ueber wealthy to pay more than their fair share of taxes. The entire country has been asked to share the sacrifice, take lesser paying jobs, move back home with family and are otherwise doubling up in their living arrangements. They are working part time jobs sans health insurance, working more than one job to make ends meet and not foreclose on their mortgages. They are sharing the sacrifice.

It has been suggested that the wealthy not pay their share as they have earned their money the old-fashioned way in many instances. In today's CNN online edition, Jeffrey Miron of Harvard University suggests that the circa $73 billion generated by taxing the wealthy at 10% would merely be a drop in the bucket and would do little to alleviate the financial issues presently facing the country. Miron believes that demonizing everyone who hits it big would be wrong.

Clearly there are policy issues to be addressed here - not least of all, the tax code needs to be rewritten to ensure that the wealthy, ueber wealthy and corporations are paying their fair share.

The Obama administration has erred greatly by not including the likes of Warren Buffett on the super committee to address budget negotiations - indeed, the Treasury Secretary, Tim Geithner would do well to heed the advice of Buffett and others of his vision - they clearly know what works and what doesn't in business.

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