Some of America's wealthiest people were guests this past Sunday on the television show This Week with Christiane Amanpour. Warren Buffett, Bill and Melinda Gates, Ted Turner; and hedge fund manager Tom Steyer addressed the primary topic of the "Giving Pledge" that Buffett and Gates have been advocating, but the subject of taxes arose as well.
Bill Gates Sr. has not only advocated an increase in taxes on the wealthy, but put money and effort into the campaign to institute a personal income tax in the state of Washington. Although the bill failed in the November election, with Washington voters handily rejecting the public question, Buffett told Amanpour that he "really admired" Gates Sr. for his efforts, and Gates Jr. volunteered that he'd voted for the measure his father had supported and said he was disappointed that it lost.
Buffett *(left) has been outspoken in his quest to get the federal government to raise taxes on high income earners, and repeated his support of higher taxes on the program. Amanpour asked if he thought that all Bush-era tax cuts should come to an end, as advocated by Alan Greenspan, but Buffett said, "No . . . actually you might extend them further for the lower class, middle class and maybe upper middle class but I think that you should raise taxes on the very rich." He pointed out that during his life, capital gains taxes had been at 39.6% and taxes on earned income had stood at 70%, "and our economy did just fine."
He also pointed out a previously much-publicized fact—that he pays less income tax than his employees; something he does not consider fair. He told of how he'd done "this little survey" in his office, with 16 people who responded. "And I had the lowest tax rate of the 16." He explained further that he didn't have tax shelters or a planner to cut his tax bill; "It was all courtesy of the U.S. Congress. I mean, they did my tax planning for me. And, literally, the average for the office, counting payroll taxes, was 32% and mine was 16 and a fraction percent."
Amanpour asked about the "trickle-down" theory, and he replied, "Well, all I can say it hasn't trickled. You know, as I said, a rising tide has lifted all yachts, but the rowboats have been left behind."
Turner wasn't so quick to agree on taxes, saying that he paid "quite a bit" but "not as much as I would if I didn't give so much money away." But that turned the conversation to philanthropy, and this is an area where all the guests had plenty to say.
Buffett has signed a pledge to give away 99% of his fortune, and said that it was not difficult to make that decision, particularly since he credits his ability to amass such a vast amount of money to ". . . a combination of living in America, some lucky genes and compound interest. [Both] my children and I won what I call the ovarian lottery." He also said he does not feel it beneficial to
