Warren Buffett Wants Higher Taxes For The Ultra-Rich, Including Himself — Says 'My Friends And I Have Been Coddled Long Enough'

Warren Buffett, who is ranked among the wealthiest individuals in the world, is not only known for his vast fortune but also for his advocacy for fiscal policies aimed at improving the quality of life for the average citizen. As chairman of the powerhouse conglomerate Berkshire Hathaway Inc., Buffett frequently voices his support for government measures that ensure economic equity and enhance public welfare.

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On Aug. 15, 2011, Buffett publicly urged U.S. lawmakers to increase taxes on the super-rich to aid in reducing the nation's budget deficit. In a New York Times opinion piece, Buffett criticized the leniency shown by Congress towards billionaires, advocating for a more equitable tax policy.

"My friends and I have been coddled long enough by a billionaire-friendly Congress. It's time for our government to get serious about shared sacrifice," Buffett stated.

He revealed that his own tax payments for the previous year amounted to $6,938,744, which was only 17.4% of his taxable income. This rate was substantially lower than that of his office staff, whose tax rates ranged from 33% to 41%, averaging 36%.

Buffett has consistently argued that higher potential taxes do not deter investment. He emphasized that despite what many might believe, higher taxes have not historically scared off investors.

The conversation about tax inequality gained further momentum in 2021 when ProPublica reported that Buffett’s true tax rate between 2014 and 2018 was 0.10%. Responding to the controversy, Buffett advocated for substantial changes to the tax code and suggested that foundations should be subject to higher annual payout requirements to boost their contributions to societal needs.

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“Perhaps annual payout requirements should be increased for foundations,” he suggested, adding that while his advocacy for stricter and higher estate taxes has been fervent, his “persuasive powers proved to be limited.”

Over the years, Buffett has remained steadfast in his position that the rich should contribute more to government coffers. He pointed out that dividends and capital gains are taxed at only 15% for the wealthy, who do not face payroll taxes. In contrast, average earners, who constitute over 80 million taxpayers, face a tax rate of 33% largely because their income derives from wages subject to various federal taxes.

Buffett proposes that while tax rates for 99.7% of taxpayers should remain stable, the government should consider increasing taxes for those earning more than $1 million per year, including income from dividends and capital gains. This approach, he argues, would not hinder economic growth or job creation but would ensure a fairer tax system.

Despite Buffett's repeated calls for higher taxes on the super-rich to address inequality and contribute more to the national budget, legislative changes targeting billionaires have not been enacted. Discussions and proposals have surfaced periodically, advocating for increased financial contributions from the wealthiest Americans. However, such initiatives have yet to materialize into concrete tax reform.

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