Often, we defer to individual’s opinions because of their level of success and/or celebrity and Warren Buffet certainly falls into this category. If he called me with a sincere stock tip, I’d hock just about anything and everything to get in on that recommendation! I mean after all, he’s Warren Buffet!
But that doesn’t necessarily make him wise in all things great and small. This link shows an excerpt of an interview wherein he suggests taxing the ultra rich: http://www.theblaze.com/stories/buffett-slams-trickle-down-calls-for-higher-taxes-on-the-wealthy/ .
What disturbs me is his rationale. He states that Government spending is 20%-25% of GDP while tax revenue is a round 15%. He states merely that those two numbers need to come closer together and someone’s taxes need to go up. Manfully, he volunteered himself and fellow ultra wealthy peers to partially fill that gap.
Check out these facts as quoted by Beforeitsnews.com directly from the director of Congresional Budget Office (CBO) during Bush’s terms.
“In a letter written by Peter R. Orszag, May 18, 2007, ( Orszag was Director of CBO “Congressional Budget Office” at the time), he stated, “receipts as a share of GDP rose from 16.5 percent to 18.4 percent”. The period was from 2003- 2006. ( I explain later that only 16.3% of Bush cuts on rich implemented before 2003, the other 83.7% started 2003.) Orszag later became Director of the Office of Management and Budget for Barak Obama. I assume, he is not a Tea Partier? ( BTW, he just quit, recommending to keep ALL the Bush tax cuts, even for the rich, for the next 2 years.) Orszog also stated in the same letter, “Total Federal revenues grew by about $625 billion, or 35%, between fiscal year 2003 and fiscal year 2006″ and then continued, “Had revenues grown at the same rate as the overall economy between 2003 and 2006, Federal receipts would have increased by only $373 billion. The other $252 billion of the actual increase in revenues represents growth in excess of GDP growth.”. When Bush got the other 83.7% of the cut, REVENUE OUTRAN GDP! “
In the short clip with Buffett he disparages “trickle down,” as though trickle down explains how we came to the current economic debacle. He completely IGNORES the GROWTH of government spending. See the graph from the Heritage Foundation. In 2000 to 2010 there has been a 40% increase in spending per household in INFLATION adjusted dollars.
This Government spending has outrun the growth of the real GDP, and tax revenues. So if Mr. B wants to ante up and put a few billions in the kitty, more power to him, but the real
problem IS an out of control government money mill!