Charles Koch Responds To Warren Buffett’s Call For Higher Taxes
Last week I wrote to you that Warren Buffett believes that the richest American’s should pay higher taxes. He suggests that the tax rates should be higher for households with a taxable income of more than $1 million, and an additional increase for those making $10 million or more, including on their dividends and capital gains. He also thinks that the tax rates for the American households making less than $1 million taxable income, which is 99.7% of the American population, should be left unchanged, as well as the current payroll tax cut of 2 percentage points.
In response, the billionaire, Charles Koch, published a statement in the National Review. Koch, the CEO of Koch Industries, doesn’t dispute that he pays a lower tax rate than many of his employees and that he could afford to pay a lot more.
However, that doesn’t mean that Koch thinks it’s smart to give the government anymore money. That’s because he believes the government is irresponsible and will just waste any increased revenue they receive.
Koch wrote, “Much of what the government spends money on does more harm than good; this is particularly true over the past several years with the massive uncontrolled increase in government spending. I believe my business and non-profit investments are much more beneficial to societal well-being than sending more money to Washington.”
Billionaire or not, I think this is the way many Americans feel. Since 2000 Federal annual spending has risen by over 200% and the deficit has sky-rocketed. Citizens are asking what the US has to show for these increases besides higher unemployment, a sagging housing market, and the possibility of another major recession. Therefore they resent the idea of giving the government more of their hard earned money just for it to go to waste.
What do you think? Are you in support of Koch’s opinion? Do you trust that any increased tax dollars will be well spent by Washington DC? Email me at matt@thestockenthusiast.com
Our countries founding fathers envisioned a small and limited government controlled by the people. There were only a couple of forms of taxes back then and there was no income tax. There were attempts during the 1800's to establish income tax but public outcry killed it each time, until quietly implemented on a small, voluntary, and limited basis to corporations only during the 1890's. Gradually it became mandatory and increased over time, then in about the 1940's it was levied on regular citizens (supposedly war time measure) and has steadily increased since.
Our government has been on a spending spree. The total amount owed (around $120 trillion) is stupid. Major media covers up by just mentioning annual amounts…not true totals. A small limited government offers stability, but a big intrusive government destroys. So Koch is absolutely right, the government doesn't need more money, actually it needs far less.
Yes, I support Koch's opinion. Honest sucessful business men know how to manage their money/businesses better than our greedy/corrupt politicians in Washington. It doesn't matter how much tax revenue Washington steal they'll find a way to squander tax payer's money, in addition to, fatting their personal bank accounts. Washington is like a black hole!!!!!!!!!!!!!!!!!!!!!
TEA (taxed enough already)
Greedy Warren Buffet has an agenda!
I have to agree with Mr. Koch. Combined at all levels of government, the share of GDP to cover taxes and interest on our borrowings is already staggering. Most notable our federal government has shown a high propensity to waste the tax dollars they already are getting. In this debate on curbing our deficits, why isn't the debate focused more on curbing our debt? There is a difference. To cut $1T in our PROJECTED deficit over the coming ten years is a laugher. We'll still be $20T in debt in ten years. How exactly do we repay that? Short of default, which we will never do, we repay that debt in dollars that are worth much less than they are today. One dollar is already worth only $.18 since we abandoned the gold standard in the 1970's. Instead of making honest efforts to address and fix the problem going forward (notice that I did not state today) , we continue to kick the can down the road. Higher tax rates on ANYONE is not the answer, as those with the means to do so WILL find ways around it. At some point, those folks will find legal ways to move their wealth outside our country. And when they do so, then what?
I do not agree with Koch, who grew up with a silver spoon in his mouth. The difference is Warren Buffet actually made all of his own money, while Koch did not. Buffett has also continually proven that he has a high degree of ethics and actually loves America. These traits remain to be seen in Koch. According to one source, one of Koch's companies "dumped hundreds of thousands of gallons of aviation fuel into wetlands near the Mississippi River from its refinery in Rosemount, Minnesota," "illegally dumped a million gallons of high-ammonia wastewater onto the ground and into the Mississippi River" and has filed one suit that was dismissed against Youth For Climate Truth.
Why don't the whiners acknowledge that the debt multiplied under Reagan & Bush2; Clinton created a surplus which the Fascists on the Supreme Court turned over to W. People who benefit most from this
economy should pay more. If the allegations about Kock dumping are even partially true, they should be in jail & fined enough to pay the cost of cleanup even if it breaks them. BOOHOO.
How irresponsible and selfish of Mr. Koch.
The fact is we owe lots of money, and to a large extent that's because of tax cuts for the wealthy (plus two unfunded wars and giveaways to health unurance companies).
So we need to raise the money to pay for this deficit. Restoring tax rates to what Ronald Reagan taxed us at seems reasonable. Restoring taxes to Bill Clinton surplus era rates is a minimum.
Sure we need to cut spending, but we have to be careful not to impact the economy too heavily. Whenever we do that cutting we will need to do so carefully. But to giveaway tax cuts to the wealthy at a time of war and economic hardships is wrong.
Tax me more!
You ask: "We'll still be $20T in debt in ten years. How exactly do we repay that?"
The answer in part is to revoke the tax cuts to the wealthy
The Buffett proposal would only make sense if there was a way to establish that the federal government can do a better job investing the money than Mr. Buffett can. But if he really believed that, then his company would have been paying dividends all these years.
We need to first establish the size we want government to be. From over 100 years of evidence, it has been established that a range between 18-20% of GDP is what government can expect to take out of the economy through taxation. This should be the upper bound of spending!
The next step is to figure how this money should be spent.
Any questions?
turn off your tv and radio and read. your are highly mis informed or a stupid liberal with blinders on as usual. if you own a home you have a deficit, a credit card is a deficit and any other things which you have bought and not fully paid for. DEFICIT. Let's tell the rest of the story such as more jobs were created under Reagan and the Bushes than all the Democrats combined. Jobs and the taxes they generate are what reduce deficits. Except THE DEMOCRATS and YES SOME REPUBLICANS want to spend every extra dime to BUY more votes, instead of reducing the budget.Let's not forget that Clinton did not create the surplus, a rock solid republican congress did, dragging Clinton along kicking and screeming. Isn"t it ironic you are willing going back 5 Presidents to place blame for something now, but are perfectly willing to give full credit to a single democrat with limited power for a surplus he had almost nothing to do with. Are the republicans good NO, They have screwed things up too, but they can't hold a candle to the democrat for screw-ups. Take your head out of that dark smelly place and get the whole story, not sound bites and talking heads.
LOL. Jerry, Jerry, Jerry. Apparently I've hit a nerve. Awesome!
Two points:
- You seem to be confused about the difference between deficit and debt. If you own a house (that you still have a mortgage on) that you bought in 1998, you have debt but you may or may not have a deficit. If you buy a house this year, and need to get a mortgage on it, that is a deficit for this year and you are adding a debt (and an asset, by the way). Great example of how debt and deficit are not necessarily bad! If you're still confused READ http://www.treasurydirect.gov/news/pressroom/pres…
– I don't see much reason to answer your revisionist history, insults and mudslinging about items off topic, but I find it a little bizarre that you wrote "Isn"t it ironic you are willing going back 5 Presidents to place blame for something now," when I was talking about reinstating tax rates under President Reagan.
Cheers and good to meet you jerry. I guess it's time to get back to my teevee and raydee-o. And if I'm lucky maybe my honey will let my head into the dark smelly place. LOL !
I have to disagree with you. If the government prove it can live within it's means, I would change my tune. That will be me in the corner waiting for hell to freeze over.
I am a firm believer in term limits. My 3rd grade teacher told me something I didn't understand, but have grown to appreciate. "Power Corrupts and Absolute Power Corrupts Absolutely"…
I have the answer…no wait…the answer has been there all along but no one wants to hear it….start off with a flat rate tax….then use that money from the tax to hire new leaders….and oust the old. We don't need nor want bigger government that spends more than they take it. We also absolutely have to have campaign finance reform…something on the order of every candidate gets the same amount of money, funded either from their own coffers or from taxpayer assistance…sorta like an education loan. If you win, you don't pay it back but if you don't win, well, you pay back half but all candidates are allowed the same amount to spend: no more, no less. Then all politicians get to work for us…and not corporate America….
That coupled with flat tax and reduce the IRS to a fraction its size, repeal Obamacare, which is in itself and giant sucking machine for our money, Homeland Security has to go, downsize the EPA, no corporate welfare programs…delegate the states with more of their slowly dissolving power…that oughta about do it…for starters.
So Koch doesn't like to sent money to Washington. Where the hell was he when Bush screwed this whole country. Giving away money to Koch and starting 2 wars not PAID for. So Koch your right. so first you pay for your damn wars started by Bush and pay back the money Bush stole, and gave away. Once YOU pay for the benefits YOU GOT, you don't have to send anymore money to Washington, just GET THE HELL OUT OF this country.
I saw my country become Socialist, properties confiscated, currency devalued and ultimately exchanged for a new one with limits as to how much of what you had in the bank or at home could be exchanged…the rest "donated' to the government…the problem with a class war between rich and poor is that when they win, they loose. Once the money runs out, where do you get it from? by then you have a "new class" the ruling party. The poor stays poor, the industry is non existent, why would you work harder to make money if it will be taken away? This Adm. brings deja vu feelings for many of us.
Has a poor person ever given you a job? Taught you how to improve your life and that of those you love, by been of help to others?
My grandfather used to say "My first duty to the poor is not to become one and build and donate things they can use, like places to offer care for the sick of pay for schooling. To simply give them constant help obliterates their drive, dulls their brains, intrudes in their lives and humiliates them".
The government is creating more debt for all of us, for no good reason, simply mismanaging the country resources. The results are evident 12,000,000 more people on Welfare and food stamps plus higher unemployment.. If these guys had been working for the private sector they would have been fired within the first 3 months of their employment.
Allen, the debt multiplied under Reagan primarily because the Democrat controlled Congress reneged on its promise to cut spending. Clinton's budget surpluses were primarily the result of him co-operating with Republicans in Congress to curb spending. (See a pattern emerging here?) You are correct however, many of us are both puzzled and angry that the Republican controlled Congress under Bush seemed to lose sight of fiscal restraint and started over-spending, raising the national debt by $3.2 Trillion from 2001 through 2006. That pales in comparison however to the uncontrolled spending that has taken place since the Nancy Pelosi and the Democrats got control of Congress. In just 5 years, they've raised the National Debt by nearly $5.2 Trillion. (Source: USGovernmentSpending.com). Maybe if Obama would stop pontificating and actually do what Clinton did, we might see some fiscal sanity start coming out of Washington.
Buffett has no ethics. He says he does one thing, and advises others to do the same, but then does the opposite.
Koch is right that the current administration mismanaged the nation's fiscal affairs. But,
that should not be an excuse for not paying taxes commensurate with his incomes. Mr.
Koch, pay you taxes first and complain about the government spending. Isn't it a RIGHT
order? I know you are the key person behind the Tea Party movements. I am afraid that
if you guys succeed, the country will become a dog-eat-dog place. That does not mean
that I support the tax-and-spend liberals. All I want is that no one (rich or poor) should
be allowed to rip-off the government in forms of free-handouts to able bodies and generous corporate welfare programs such as tax breaks, bailouts, and subsidies for the rich. At
least Warren Buffett is honest and ethical but you are NOT.
Koch is correct in his assertion that the government wastes money, so why give them more? It is also true that much of the wealth of the truly wealthy is dividend income, which is taxed at a lower rate. My problem with the liberals who say "tax the rich", is that they never raise the tax rate on dividends, so the tax rate increase falls disproportionately on those who make a fairly good income, but are paid by someone. At least Warren Buffett had the honesty to mention that in his comments.
A better solution is a flat tax. Almost half the people in this country pay little or no taxes. While the truly wealthy don't have as high a tax rate as higher income wage earners, they do pay something. If everybody paid taxes, say around 15%, the tax rate for most people who do pay taxes will go down to match the tax rate of those whose incomes are primarily dividends. Not only will this be fairer, the result is more revenue, as there will be more taxpayers. Also get rid of all deductions and lower the corporate tax rate. In my opinion, this will raise even more revenue because we can get rid of all these pass through LLC's that function as nothing more than a way for people to claim corporate tax writeoffs on their personal income taxes.
Mr. Koch is not being truthful with respect to the taxes he pays or does not pay depending on how his tax attorney sorts out his return. He enjoys the benefit of great wealth and still resents anyone else an opportunity to live a decent life. The same old trite phrases that government wastes money are being trotted out as an excuse for not paying a higher rate. But who set up the spending of which he speaks. Congress. followed by a pliant president. It is actually true that the current president HAS NOT RAISED TAXES EVEN ONCE. So the spending going on is residual based on previous administration debt service, coupled with spending authorized by the new Congress. They have done nothing to raise revenue in line with the normal operating expenses of the government. The inevitable result is an increase in borrowing to pay for the two wars and the interest on the debt racked up by these wars. It was insane to reduce taxes on the rich when we were racking up these bills. It is time to start thinking about how we can restore those tax rates and even think about a possibility of making them RETROACTIVE. That's right retroactive.
“It is actually true that the current president HAS NOT RAISED TAXES EVEN ONCE”
Really Robert, you are simply playing semantic games here. Is it possible that you aren’t aware that the budget that Obama proposed back in February had nearly $1 Trillion in new taxes? The only reason it didn’t go any further than that is because the Senate voted it down 97-0. It’s also fairly well known that during the debt ceiling debates, Speaker Boehner and Sen. Reid had a deal in principal worked out, but Reid backed out after discussions with Obama who insisted that he wanted more taxes. This was also the crux of the reason that Mr. Boehner walked out on negotiations with the President sometime later. They had already agreed to “revenue enhancements” of $800 Billion, but Obama insisted on another $400 Billion. At that point Boehner walked out stating that Obama moved the goalposts.
Furthermore, the Presidents insistence that he would only extend the Bush tax rates for another two years means that, barring further legislation, Obama is effectively be putting tax increases through in 2012.
What’s more, your assertion that “the spending going on is residual based on previous administration debt service” indicates that you perhaps don’t understand that spending bills HAVE to originate in the Congress, NOT the White House. Most of the spending that we’re currently stuck with is directly attributable to the legislation pushed through by Nancy Pelosi and Harry Reid after the Democrats took over Congress in 2007. Though the current House has tried to pass legislation to reduce spending, their efforts have been blocked by the Democrats in the Senate, backed up with a threat of a Presidential veto for any spending bills that don’t continue to fund Obama’s pet projects.
We have over $2 Trillion in revenues coming in already, yet we are still overspending by $1.6 Trillion. There’s not enough money, even if you confiscate the entire wealth of the Forbes 400 to cover what we’re spending. Bottom line is that we need on the one hand to spend less, and on the other hand to create more tax-payers and not more taxes.
By the way, making a tax retroactive would probably be considered an Ex Post Facto law, which is unconstitutional.
You won't accept my vote because it differs from what you think I should be voting for: NO, I don't think millionaires' tax rates should be increased: they already pay more than 50% of all tax money.
Yes, the government should be much smaller and nobody should vote for a second period for this president. He is not a news writer or commentor so stop putting all news through his image and lips. Do not believe a word he says. He says whatever sounds great but does the opposite. Discard him from the news
I agree that government wastes our tax dollars and enacts regulation that makes little sense.
I also believe that those who get the most out of an investment ( infrastructure ) should invest the most into this infrastructure. The corporations have no right to use our markets to get rich and take no responsibility for keeping it financed. They also have no right to buy our elections and legislation , this amounts to treason and should be punishable by Military firing squad , both on the receiving and the giving end. The honesty Koch mention is non existent in business and that also should be regulated and punished. Business has a responsibility to make sure that government Representatives are honest and responsible , not crooked and responsible ,like it is now. Mr. Koch is not honest in his response and there lies the blame for our problems.
Aviater54.
You are part of the problem not part of the solution. All this debt was brought to you curtisy of the GOP Corporatist terror group and not by government over spending. War and the Tax cuts are not Government spending on the debt,but unfunded greed by the war machine that has been getting rich on lies for as long as I can remember. also career officers in our government that are bleeding the tax payers blind, How can you expect the tax payers to pay four or five people for the same office year after year, if we did not have career officers we would not have this expense.
Get the flat tax and you are really going to cry. NO FLAT TAX. You can divide the budget by the population and get the truth about the Right wing steal called the Flat Tax. You better get off that horse it is going to pile you up for life.
The right thing to do is confiscate the assets of every one who registered republican in 2004 and give it to the treasury to help pay for the damage they did knowingly. Then we need to load those same secessionists on a boat to the international boundary and make them walk the plank. These people refuse to learn and they have no suspicion of how to discern the truth so they have no value and they pose a danger to our society.
You sir are wrong and if you get your way you will suffer great harm. I agree we need a different candidate for the democratic ticket but the republican ballot will be much worse . You should be able to see that Obama ( because of the blue dog Dems ) had no vote and could not have caused all this damage. This damage is compliments of the right wing terror group. The rppublicans planned and executed this economy and they are going keep you starving until they get their way.They told you that years ago when Newt Gingrich resigned , when they told you they would let SS wilt on the vine.
In general, Koch is wrong ; worse, his reasoning is unsophisticated. A trillion dollars (latest estimate) has to be found to fund services and care for returning veterans; as well as paying for the two wars still underway. Probably another trillion is needed to repair and build bridges, repair dams and roads, build power infrastructure – all jobs for the private sector, but the public sector has to pay for most or all of it.
Koch misrepresents the honesty and integrity of business people; they are like everyone else and the events of 2003-8 show they can be much worse. Is government wasteful? sometimes. Is private business more efficient? Often it is not. The health insurance business is a prime example: US health care costs as a percentage of GDP are 30% higher than in other countries; health outcomes are no better and in other countries the full population is covered; in the US a large proportion have no or little coverage. The US system is the least cost effective among the developed countries. That is not a political statement, but one based on data.
Most important of all, the US, like other western countries, faces a major demographic crisis – not enough working people to pay for social service, health and pension costs for an aging population, or to fill the jobs necessary for the economy.. Typically, there are about 12-15 workers per retired person; we are reaching a point where there will be only 4 workers! It is in the national interest that education and support programs be developed to keep children in school, college and university to enhance their earning power both to fill the jobs needed for the economy and to keep services going.
Remember what the baby boom bulge has taught us: demography is implacable.
“You don’t have to go looking for love when it’s where you come from.” ~ Werner Erhard
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