Here is the reaction of a successful 72 year old man who does not
agree with the Buffet Rule.
Harvey Golub responds well to the proposal of the Buffet Tax.
Here's my message: Before you "ask" for more tax money from me and
others, raise the $2.2 trillion you already collect each year more
fairly and spend it more wisely. Then you'll need less of my money.
"The extraordinarily complex tax code is replete with favors to various interest groups and industries."
By
HARVEY GOLUB and his reaction to the Buffet rule:
Over the years, I have paid a significant portion of my income to
the various federal, state and local jurisdictions in which I have
lived, and I deeply resent that President Obama has decided that I don't
need all the money I've not paid in taxes over the years, or that I
should leave less for my children and grandchildren and give more to him
to spend as he thinks fit.
I also resent that Warren Buffett and others
who have created massive wealth for themselves think I'm "coddled"
because they believe they should pay more in taxes. I certainly don't
feel "coddled" because these various governments have not imposed a
higher income tax. After all, I did earn it.
Now that I'm 72 years old, I can look forward to paying a
significant portion of my accumulated wealth in estate taxes to the
federal government and, depending on the state I live in at the time, to
that state government as well. Of my current income this year, I expect
to pay 80%-90% in federal income taxes, state income taxes, Social
Security and Medicare taxes, and federal and state estate taxes. Isn't
that enough?
Others could pay higher taxes if they choose. They could voluntarily
write a check or they could advocate that their gifts to foundations
should be made with after-tax dollars and not be deductible. They could
also pay higher taxes if they were not allowed to set up foundations to
avoid capital gains and estate taxes.
What gets me most upset is two other things about this argument: the
unfair way taxes are collected, and
...the violation of the implicit social
contract between me and my government that my taxes will be
spent—effectively and efficiently—on purposes that support the general
needs of the country.
Before you call me greedy, make sure you operate
fairly on both fronts.
Today, top earners—the 250,000 people who earn $1 million or
more—pay 20% of all income taxes, and the 3% who earn more than $200,000
pay almost half. Almost half of all filers pay no income taxes at all.
Clearly they earn less and should pay less.
But they should pay
something and have a stake in our government spending their money too.
In addition, the extraordinarily complex tax code is replete with
favors to various interest groups and industries, favors granted by
politicians seeking to retain power. Mortgage interest deductions
support the private housing industry at the expense of renters. Generous
fringe benefits are not taxed at all, in order to support union and
government workers at the expense of people who buy their own insurance
with after-tax dollars. Gifts to charities are deductible but gifts to
grandchildren are not. That's just a short list, and all of it is
unfair.
Governments have an obligation to spend our tax money on programs
that work. They fail at this fundamental task.
Do we really need dozens
of retraining programs with no measure of performance or results? Do we
really need to spend money on solar panels, windmills and
battery-operated cars when we have ample energy supplies in this
country? Do we really need all the regulations that put an estimated $2
trillion burden on our economy by raising the price of things we buy? Do
we really need subsidies for domestic sugar farmers and ethanol
producers?
Why do we require that public projects pay above-market labor costs?
Why do we spend billions on trains that no one will ride? Why do we keep
post offices open in places no one lives? Why do we subsidize small
airports in communities close to larger ones? Why do we pay government
workers above-market rates and outlandish benefits? Do we really need an
energy department or an education department at all?
Here's my message: Before you "ask" for more tax money from me and
others, raise the $2.2 trillion you already collect each year more
fairly and spend it more wisely. Then you'll need less of my money.
Mr. Golub, a former chairman and CEO of American Express, currently
serves on the executive committee of the American Enterprise Institute.
"Here's my message: Before you "ask" for more tax money from me and others, raise the $2.2 trillion you
already collect each year more fairly and spend it more wisely. Then you'll need less of my money."