Warren Buffet debunks the myth about taxing the rich more equals a loss in jobs:
Back in the 1980s and 1990s, tax rates for the rich were far higher, and my percentage rate was in the middle of the pack. According to a theory I sometimes hear, I should have thrown a fit and refused to invest because of the elevated tax rates on capital gains and dividends. I didn’t refuse, nor did others. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation
You wouldn’t think the Tea Party or the GOP could argue against this, but they will for two reasons. First, the GOP argues that you should have “choice” in how you spend your money. If you want to give it to charity instead of the government, that should be your decision. Second, they represent a constituency that is Wall Street that, even though low taxes don’t really stimulate job growth, do not want higher taxes anyway. Warren Buffet could be in the minority opinion. It would be like if Democrats decided to try and pass legislation making union organization harder. The AFL-CIO would have a cow.
Not to say Buffet is wrong, but in his own words:
I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering. (emphasis mine)
That is the sentence the GOP will run with, I guarantee it!
Do you think Warren Buffet is right? Should the rich pay more in taxes? What will be the GOP’s argument?
Photo Credit: ABC News