Buffett's soap box
In a recent op-ed article for the New York Times–'Stop Coddling the Super-rich'–Warren Buffett chastises the US Government for under taxing him and his super-rich compatriots.
In the US (and Australia), wages (labour) are taxed at higher rates than investment income (capital). As wealthy people tend to earn a higher portion of their income from investments, they pay a lower average tax rate compared to the middle class.
Buffett suggests closing this loophole. If he were in charge, he'd immediately raise taxes on those earning more than US$1m per year as a simple way of helping rein in the US's growing fiscal deficit. And to those who whine about taxes? Buffett suggests they gain a little perspective, perhaps via a short stint in Afghanistan.
It's a deeply controversial issue that drives to the heart of governments' role in society. What is the right balance between private ownership and 'a fair go'?
Buffett recently appeared on the Charlie Rose show to expand on his New York Times piece. In a long (but interesting) interview he discusses tax reform, equity, the financial predicament of Americans, US capitalism, Berkshire and plenty more. If you're pressed for time, jump straight to the last twenty minutes.