Name: Insights: Warren Buffett Defends the Buffett Rule
Uploaded: 2020-02-07
Duration: 3 min 9 s
Description: Warren Buffett explained the thinking behind it. (October 2011)

[MUSIC PLAYING] You can go to the internet and you can get this print out, I've even got it here, and it lists the-- it lists a lot of figures for the 400 highest incomes in the United States, and it goes back to 1992. And since 1992, the average income of the 400 highest incomes has gone from $40 odd million to $220 odd million, five-fold. During that time, their tax rate as a percentage of taxable income has fallen from 29% percent down to 21%. That counts payroll taxes and income taxes. And I took this survey in my office, I did it four years ago, and everybody in the office was over 30% combined payroll taxes and income taxes. So I would just like the people who averaged $220 million in this case to start paying taxes at a rate that's more or less comparable to what people pay in our office. Now, that would not change many of the people at the top. A lot of people are paying that on ordinary income, and they are in the 30s. But there are a lot of people like me that get most of their money from dividends and capital gains, and we're down around 15% or so. In fact, there are a number of people who are below 15% that are making over a couple hundred million dollars a year, believe it or not. I just say get those people up into the 30s. We just had a-- [APPLAUSE] I'm not supposed to mention it here, but the Forbes 400 just came out, and-- [LAUGHTER] --the aggregate wealth of the Forbes 400 this year was over $1 trillion $500 billion. That's up seven-fold in the last 25 years from $200 million roughly 25 years ago. That is not what the American public has experienced, so the disparity is growing wider and wider in this country. And we're going to talk about shared sacrifice. We're going to go to the American public and say we've got $1 trillion $200 billion dollars difference between receipts and expenditures, so we're going to ask something from all of you. We're going to ask people to give up some promises that have been made to them in the past that are going to have to be modified in the future. We're going to ask 300 million Americans plus to tighten their belts one way or another and help us get our fiscal house in order. And to ask them something like that, when the super rich in many cases are paying 20 points less in terms of taxes the federal government, I think is just plain wrong. It doesn't solve our budget problem. What I suggest would probably raise about $20 billion annually from about 50,000 people. But $20 billion is $1,000 each to 20 million families. And if I've got a choice of getting $1,000 from 20 million families throughout this country that are already struggling or getting $20 billion by asking people to pay taxes in the range of the 30s, just like everybody else is in this country, I'd rather go to those, the ultra rich. 

Insights: Warren Buffett Defends the Buffett Rule

Uncategorized

Buffett explained the thinking behind it.

Warren Buffett Defends the Buffett Rule

Warren Buffett explained the thinking behind it. (October 2011)

you can go to the Internet and you can get this printout. I've even got it here. And it, uh, it lists the It lists a lot of figures from the 400 highest incomes in the United States and goes back to 1992. And since 1992 the average income of the 400 highest incomes has gone from 40 odd 1,000,000 2 220 odd 1,000,000 five fold. During that time, their tax rate is the percentage of taxable income has fallen from 29% down to 21%. That counts payroll taxes and income taxes. And I took this survey in my office. I did four years ago, and everybody in the office was over 30% combined payroll taxes in income, Texas. So I would just like the people who averaged 220 million in this case to start paying taxes at a rate that's more or less comparable what people pay in our office now. That would not change many of the people of the top. A lot of people are paying on ordinary income, and they are in the thirties, but there are a lot of people like me that get most of their money from dividends and capital gains. And we're down around 15 or so. In fact, their number of people that are below 15 they're making over a couple $100 million a year. Believe it or not, uh, I just say, Get those people up into the thirties. We just had a I'm not supposed to mention it here, but the Forbes 400 just came out and and they the aggregate wealth of the Forbes 400 this year was over a trillion 500 billion. That's up seven fold in the last 25 years from from 200 million roughly 25 years ago. That is not what the American public is experienced. So the disparity has grown wider and wider in this country, and we're going to talk about shared sacrifice. We're gonna go to the American public and say we've got a trillion $200 billion difference between receipts and expenditures. So we're gonna ask something from all of you were gonna ask people to give up some promises. They, uh, have been made to them in the past. We're gonna have to be modified in the future, we're gonna have 300 million Americans plus to tighten their belts one way or another and help us get our fiscal house in order and to ask them something like that. When the super rich in many cases are paying 20 points less in terms of of taxes, the federal government, I think it's just plain wrong. It doesn't solve our budget problem. What I suggest would probably raise about $20 billion annually from about 50,000 people, but $20 billion is $1000 each to 20 million families. And if I've got a choice of getting $1000 from 20 million families throughout this country that already struggling or getting 20 billion by asking people to pay taxes in the range of the thirties just like everybody else is in this country, I'd rather go to those the Oprah rich