That’s right: As Americans for Limited Government President Bill Wilson notes, the company openly admits that it owes back taxes since as long ago as 2002.
“We anticipate that we will resolve all adjustments proposed by the US Internal Revenue Service (“IRS”) for the 2002 through 2004 tax years ... within the next 12 months,” the firm’s annual report says.
It also cites outstanding tax issues for 2005 through 2009.
Obvious question: If Buffett really thinks he and his “mega-rich friends” should pay higher taxes, why doesn’t his firm fork over what it already owes undercurrentrates?
Likely answer: He cares more about shilling for President Obama -- who’s practically made socking “millionaires and billionaires” his re-election theme song -- than about kicking in more himself.
Buffett’s free to back Obama, of course.
And if his firm wants to keepitstax bill low, well, that’s its right, too.
But it would be nice if this “pro-tax-hike” tycoon were a bit more honest about it.
Start, for example, with his grossly disingenuous recent claim that, as he wrote in The New York Times, he paid only 17 percent of his income last year to the government -- even as many working stiffs who make far less than him coughed up higher percentages.
Fact is, unlike most other folks, Warren Buffett gets most of his income from dividends and capital gains, which are nominally taxed at 15 percent.
Left unsaid is that much of that is taxed at 35 percent (via the corporate income tax)beforehe even gets his hands on it. So in effect, he’s paying taxestwice(that is, when his companies actuallypay,anyway).
Counting both taxes, his effective rate would really be well north of 40 percent for a big chunk of his income.
There’s more. Obama, and co-conspirators like Buffett, claim to want to slap only “millionaires and billionaires.”
But in 2009, for instance, fewer than a quarter-million taxpayers (less than two tenths of 1 percent) reported income over $1 million -- and their combined bill was less than $200 billion.
Raise the top tax rate on them by 13 percent, as Obama wants (from 35 percent to 39.6 percent) and you bring in only another $26 billion, tops -- and that’sifyour tax hike doesn’t stifle the economy and kill jobs (which it surely would). Yet what’s $26 billion in a world of $4 trillion federal budgets with trillion-dollar-plus deficits?
No wonder Obama’s hikes on “millionaires and billionaires” actually start with folks earning as little as $200,000.
Looks like Buffett’s not the only disingenuous one here. But again, that’s clear from their individual behavior: Obama, Buffett and Democrats like Bill Clinton keep saying they want to pay more taxes.
Fine. They can always write checks.
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