home | articles | Warren Buffett, Taxes, and the Role of Government
Brockwell Bone, Concerned Citizen
In the final presidential debate, Barrack Obama spoke about taxes:
“I want to cut taxes for 95 percent of Americans. Now, it is true that my friend and supporter, Warren Buffett, for example, could afford to pay a little more in taxes in order... to give additional tax cuts to Joe the plumber before he was at the point where he could make $250,000.”
I want to start by saying that I agree with Senator Obama, Warren Buffett and the rest of the 5% of the rich that hold a majority of our nation’s wealth can afford to pay more in taxes. This would definitely allow for tax cuts, or redistribution of wealth by government, helping those that are not rich.
The mathematics of this approach work; however, why should government determine who gets this money, these tax cuts, and other benefits?! Why can’t Warren Buffett chose who to give his money to? Why can’t the rest of the top 5% decide? They are probably some of the smartest people in the world – all specializing in investing and growth.
They could easily change from financial investing to social investing and determine better places to put that money than government.
The top 5% could easily:
- Invest directly into other businesses
- Put their money in long-term bank investments like CDs and Trusts knowing that bank’s will lend it out
- Donate to a charitable organization that subsidizes healthcare costs of the poor
- Start a scholarship fund and specify the criteria of fund recipients
Senator McCain said in his response:
“Now, of all times in America, we need to cut people's taxes. We need to encourage business, create jobs, not spread the wealth around.”
I agree with this statement. If the rich continue starting and expanding their businesses because they have more money, it will create more jobs allowing Americans to work for their money and experience the pride associated with supporting one’s self.
What will happen if we tax the rich more and more, depending on them for a redistribution of wealth? They will leave! They will down-size their companies, start companies in other countries, and decrease their income. This will remove that money that everyone else relies on from our system and, if you thought that the economic “crisis” was bad, you haven’t seen anything!
Supporting Free Will,
Brockwell Bone
Concerned Citizen, Small Business Owner, Husband, Father
www.BrockwellBone.com
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