I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.
Love this guy.
Do the super rich really need anyone fighting to bolster their bottom line? In a poll of the “top 400” richest that Buffet mentions, I wonder how many would care in the slightest if their tax rate went up. If you’re hard wired to make money like these people, higher taxes will not deter you, if anything I’d think it pushes you to make more.
I’m not an expert (or rich) like Mr. Buffet, but it makes you wonder, if the super rich wouldn’t mind and it makes profound economic sense for them to be taxed at a higher rate, why there is a fight in Congress against raising taxes for this group. Sure, there are a handful of well-to-do Republicans that would be affected, but the Tea Party election of 2010 tells us that there are quite a few common people in that corner as well.
Then there was this in the Economist, about a recent study:
Instead of opposing redistribution because people expect to make it to the top of the economic ladder, the authors of the new paper argue that people don’t like to be at the bottom. One paradoxical consequence of this “last-place aversion” is that some poor people may be vociferously opposed to the kinds of policies that would actually raise their own income a bit but that might also push those who are poorer than them into comparable or higher positions.
So, “last-place aversion”. We’d rather give tax breaks to the rich than see their tax dollars reach the poor folk and give them a boost. The article also states that more diverse nations have a harder time raising taxes: tax payers don’t like thinking their money is going to someone different than themselves. More homogenous countries in Europe have much higher tax rates across the board and a people are fine with it. This potentially explains why the US tax rate has fallen so drastically over the past century, as more diverse groups gained rights in our society.
But I don’t think that’s the whole picture. I’ve lived both in small conservative midwestern towns and a couple of the biggest cities in the country. Our major cities, which are our most diverse areas, generally support liberal policy and higher taxes. On the other hand, the current conservative base of rural, white, lower and middle class people supports tax breaks and votes with the Tea Party. So why, when that group has the most to gain and generally speaking comes from a homogenous population pool, would they oppose higher tax rates? Hint: maybe we should see where they’re getting their information…
One day, when we’re paying subscription fees to Halliburton to drive on highways and swiping credit cards with the fire department before they turn on the water, but not paying any taxes, maybe they’ll ask themselves the same question.
