Warren Buffet has an interesting editorial in today’s New York Times. He says it’s time to raise taxes on the “mega-rich”.
There’s no definition of “mega-rich” in Webster’s Dictionary. And Dictionary.com doesn’t have one either.
Buffet seems to think “mega-rich” is anyone with taxable income in excess of $1 million. He wants to raise their taxes now.
Personally, I don’t think a small business owner with $1 million in profits (taxable income) is mega-rich. And anyway, that small business may not have the ability to pay higher taxes right now (unlike Mr. Buffet).
We’ve said it before – “profits” don’t equate to cash in pocket. Those profits may be tied up in accounts receivable, inventory, working capital needs and debt repayments.
So if Mr. Buffet wants to give more of his income to the government, he’s free to do so. In fact, we’ll be sending him info on how to give more money to the government – without raising taxes.
By the way, if you want to make a voluntary contribution to the federal government’s general funds, check out http://www.fms.treas.gov/faq/moretopics_gifts.html .
Or, if you want to make a voluntary contribution that helps directly reduce the national debt, go to https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=23779454
You can also reach Mr. Buffett at http://www.berkshirehathaway.com/
Let him know how you feel about his proposal to increase taxes, also known as “involuntary contributions”.
