would you prefer a hypocrite old man, like Warren Buffet who now claims raising the taxes on the rich won't deter them from making investments?<quoted text>You racist old man.
Taxes matter -- to Buffett.
Harvard's Economic Department chairman, Greg Mankiw, writes that "Mr. Buffett never mentions doing anything to eliminate the tax-avoidance strategies that he uses most aggressively. In particular:
"1. His company, Berkshire Hathaway, never pays a dividend but instead retains all earnings. So the return on this investment is entirely in the form of capital gains. By not paying dividends, he saves his investors (including himself) from having to immediately pay income tax on this income.
"2. Mr. Buffett is a long-term investor, so he rarely sells and realizes a capital gain. His unrealized capital gains are untaxed.
"3. He is giving away much of his wealth to charity. He gets a deduction at the full market value of the stock he donates, most of which is unrealized (and therefore untaxed) capital gains.
"4. When he dies, his heirs will get a stepped-up basis. The income tax will never collect any revenue from the substantial unrealized capital gains he has been accumulating.
"To be sure, there are pros and cons of changing the provisions of the tax code of which Mr. Buffett takes advantage. Tax policy always involves difficult tradeoffs. But it seems odd to me that whenever Mr. Buffett talks about taxing the rich more, the 'loopholes' that he uses never seem to enter into the conversation."
Guess who else thinks Buffett should pay more in taxes: the IRS.
Buffett's Berkshire Hathaway has been fighting the IRS over the $1 billion in taxes the government claims it is owed, dating as far back as 2002. Last year, one of Berkshire Hathaway's companies, NetJets, sued the IRS, demanding that the feds return $642.7 million in already paid taxes. And this year, the IRS sued NetJets, claiming it is owed $366.3 million in unpaid taxes.
Meanwhile, scientists at the National Institutes of Health are working feverishly to develop a cure, vaccine or treatment for this disease -- that appears to afflict guilty/super-wealthy liberals -- known in medical circles as "Buffettitis." It's early, and one risks being premature. But NIH just may have produced a workable solution: "Mr. Buffett, whip out your checkbook, and cut the U.S. Treasury a check. Given the state of the economy, let's hope it doesn't bounce."