News / Economy

    Man Behind Obama’s 'Buffett Rule' Calls For Tax Fairness

    Warren Buffett (file photo)
    Warren Buffett (file photo)
    Kent Klein

    One of the most controversial pieces of President Barack Obama’s economic plan is named for one of the richest men in the world.  The president calls his proposal to raise taxes on wealthy individuals and corporations “The Buffett Rule.”  Some Republicans are calling it class warfare.   

    Warren Buffett says he paid almost $7 million in taxes last year.  He says that is not enough.

    “I think people at the high end, people like myself, should be paying a lot more in taxes," said Buffett.

    The billionaire investor wrote an opinion article in the New York Times in August, claiming that all 20 employees in his office pay a higher percentage of their incomes in taxes than he does.

    Buffett suggested increasing taxes on millionaires and billionaires.  He wrote, “My friends and I have been coddled long enough by a billionaire-friendly Congress.  It is time for our government to get serious about shared sacrifice.”

    President Obama is incorporating Buffett’s proposal into his plan to reduce the federal deficit.  
    “Middle-class families should not pay higher taxes than millionaires and billionaires," said President Obama. "That is pretty straightforward.  It is hard to argue against that.  Warren Buffett’s secretary should not pay a higher tax rate than Warren Buffett.”

    The president announced his deficit-cutting plan on Monday, and said it would include a provision he called the “Buffett Rule.”

    The rule states that “No household making over $1 million annually should pay a smaller share of its income in taxes than middle-class families pay.”  Administration officials have not given details on how the plan would be put into effect.

    Some reports have shown that most of the richest Americans already pay a higher percentage of their income in taxes than lower- or middle-income taxpayers.

    Meanwhile, some Republicans call the proposal class warfare. Senate Minority Leader Mitch McConnell says it would stifle job creation.

    “If he is feeling guilty about it, I think he should send in a check," said McConnell. "But we do not want to stagnate this economy by raising taxes.”

    Obama said Thursday the purpose of his plan is basic fairness.

    “If asking a billionaire to pay their fair share of taxes, to pay the same tax rate as a plumber or a teacher, is class warfare, then, you know what?  I am a warrior for the middle class," he said. "I am happy to fight for the middle class.  I am happy to fight for working people.”

    Public opinion polls show that most Americans agree with Warren Buffett that the richest citizens should pay more in taxes.

    Buffett is ranked as the third-wealthiest person in the world, with $39 billion.  He has been investing for 70 years, since he was 11-years-old.  His success has earned him the nickname “The Oracle of Omaha.”

    Buffett endorsed and contributed money to Obama’s presidential campaign in 2008, and he is scheduled to host a fundraising event for the president in October.  Tickets will cost $35,000 each.

    The 81-year-old chairman of the conglomerate holding company Berkshire Hathaway has committed to gradually give all of his company stock to philanthropic foundations.  He said more than 99 percent of his wealth will go to philanthropy during his lifetime or at death.

    “My wife and I, when we were in our twenties, decided that whatever we had that we did not need should go to somebody that did need it," he said. "We had that planned for years, and lately we have taken up with this Giving Pledge to try and encourage others to feel the same way.”

    The Giving Pledge was started by Microsoft founder Bill Gates and his wife Melinda.  They are asking hundreds of the richest Americans to pledge at least 50 percent of their wealth to charity.

    President Obama praised Buffett’s generosity while awarding him the nation’s highest civilian honor, the Presidential Medal of Freedom, in February.

    “And yet for all the money he has earned, you do not see Warren Buffett wearing fancy suits or driving fancy cars," said Obama. "Instead, you see him devoting the vast majority of his wealth to those around the world who are suffering or sick or in need of help.  And he uses his stature as a leader to press others of great means to do the same.”

    Buffett is known for his relatively modest lifestyle.  He does not live in the financial and media center of New York, but in his less glamorous home town, the central U.S. city of Omaha, Nebraska.

    When awarding Buffett the Medal of Freedom, the president joked about his frugal living.

    “I should point out he is so thrifty, I had to give him a White House tie the last time that he came here to visit," he said. "His was looking a little shredded.  So then, when Bill Gates came, he wanted one too.”  

    Now President Obama is hoping that Warren Buffett’s prestige and reputation as a business leader and philanthropist will help build support for the administration’s economic plan.

    You May Like

    Russian-speaking Muslim Exiles Fear Possible Russia-Turkey Thaw

    Exiled from Russia as Islamic radicals and extremists, thousands found asylum in Turkey

    US Presidential Election Ends at Conventions for Territorial Citizens

    Citizens of US territories like Guam or Puerto Rico enjoy participation in US political process but are denied right to vote for president

    UN Syria Envoy: 'Devil Is in the Details' of Russian Aleppo Proposal

    UN uncertain about the possible humanitarian impact of Russian proposal to establish escape corridors in Aleppo

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Uganda Unveils its First Solar-powered Busi
    X
    July 28, 2016 4:16 AM
    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Uganda Unveils its First Solar-powered Bus

    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Silicon Valley: More Than A Place, It's a Culture

    Silicon Valley is a technology powerhouse and a place that companies such as Google, Facebook and Apple call home. It is a region in northern California that stretches from San Francisco to San Jose. But, more than that, it's known for its startup culture. VOA's Elizabeth Lee went inside one company to find out what it's like to work in a startup.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Philadelphia Uses DNC Spotlight to Profile Historic Role in Founding of United States

    The slogan of the Democratic National Convention now underway in Philadelphia is “Let’s Make History Again” which recognizes the role the city played in the foundation of the United States in the 18th century. As VOA’s Kane Farabaugh reports, local institutions are opening their doors in an effort to capitalize on the convention spotlight to draw visitors, and to offer more than just a history lesson.
    Video

    Video A Life of Fighting Back: Hillary Clinton Shatters Glass Ceiling

    Hillary Clinton made history Thursday, overcoming personal and political setbacks to become the first woman to win the presidential nomination of a major U.S. political party. If she wins in November, she will go from “first lady” to U.S. Senator from New York, to Secretary of State, to “Madam President.” Polls show Clinton is both beloved and despised. White House Correspondent Cindy Saine takes a look at the life of the woman both supporters and detractors agree is a fighter for the ages.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video First Time Delegate’s First Day Frustrations

    With thousands of people filling the streets of Philadelphia, Pennsylvania for the 2016 Democratic National Convention, VOA’s Kane Farabaugh narrowed in on one delegate as she made her first trip to a national party convention. It was a day that was anything but routine for this United States military veteran.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.9017
    JPY
    USD
    104.72
    GBP
    USD
    0.7594
    CAD
    USD
    1.3160
    INR
    USD
    67.046

    Rates may not be current.