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Warren Buffett Ready for Republicans' Tax Challenge

January 12, 2012 | About:
CanadianValue

CanadianValue

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In Time's article on Warren Buffett, he comments on his controversial statement that it is unfair that he pays a lower tax rate than his secretary. Buffett says he is willing to match dollar-for-dollar all Republicans' charitable donations to the national debt:

Warren Buffett is ready to call Republicans’ tax bluff. Last fall, Senator Mitch McConnell said that if Buffett were feeling “guilty” about paying too little in taxes, he should “send in a check.” The jab was in response to Buffett’s August 2011 New York Times op-ed, which made hay of the fact that our tax system is so unbalanced, Buffett (worth about $45 billion) pays a lower tax rate than his secretary. Senator John Thune promptly introduced the “Buffett Rule Act,” an option on tax forms that would allow the rich to donate more in taxes to help pay down the national debt. It was, as Buffett told me for this week’s TIME cover story, “a tax policy only a Republican could come up with.”

Still, he’s willing to take them up on it. “It restores my faith in human nature to think that there are people who have been around Washington all this time and are not yet so cynical as to think that [the deficit] can’t be solved by voluntary contributions,” he says with a chuckle. So Buffett has pledged to match 1 for 1 all such voluntary contributions made by Republican members of Congress. “And I’ll even go 3 for 1 for McConnell,” he says. That could be quite a bill if McConnell takes the challenge; after all, the Senator is worth at least $10 million. As Buffett put it to me, “I’m not worried.” (See below for a statement from McConnell’s office.)

Buffett doesn’t want to sound ungrateful, especially since McConnell and other Republicans have lobbied to keep taxes low for the über-rich, saving him between $6 million and $7 million this year. Oddly, though, conservatives can’t seem to make up their mind about taxes. On Wednesday in the Wall Street Journal, supply sider Arthur Laffer bashed Buffett for, among other things, shielded income, because he doesn’t pay taxes on unrealized capital gains (currently taxed at 0%) or charitable contributions (which are tax deductible). “Well, I had a net unrealized loss in 2011,” says Buffett. “But if Arthur has a plan for how he wants to tax unrealized capital gains, I’d love to hear it — it’s an interesting thing for a Republican to put forward!”

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CanadianValue
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