Warren Buffett, taxing capital income is a bad idea
By Lee Ohanian
In 2011, superstar investor Warren Buffett made headlines not for his investment recommendations but for his opinion that tax rates on high earners should substantially increase.
Buffett proposed the Buffett Rule, which would impose a minimum 30 percent effective tax on those with incomes exceeding $1,000,000. This was supported by then-President Barack Obama and 2016 Democratic Presidential nominee Hillary Clinton.
Buffett repeated his opinion earlier this year, arguing “The wealthy are definitely undertaxed relative to the general population.”
Buffett does this by transferring the income growth in his assets into price appreciation of Berkshire Hathaway stock, which is the corporation that he runs. The tax is not due until the stock is sold.