Mr. Buffet, after getting a nice payoff of the death of the Keystone pipeline project, which left Mr. Buffet’s new railroad as being the main transportation supplier for oil coming out of the Bakken oil fields, has famously gone on record as saying that he pays less taxes than his secretary. He is referring to the difference in tax rates between income taxes, which are paid on the income that his secretary makes, versus the taxes on capital gains, which are his own major source of income.
Not withstanding the fact that for MOST people, the money risked to generate capital gains investment income has already been taxed as income already, AND that there is nothing to prevent Mr. Buffet from dashing off a nice sized check payable directly to the federal government any time that he personally feels that he personally is not paying enough in income taxes, one still must question the automatic supposition that Mr. Buffet and the collective group of capital gains investors for whom he has the gall to presume to speak for ought to be paying even more in taxes.
One point that is glossed over is that, the income tax amendment was originally put in place just to pay for the exorbitant expenses incurred specifically from a war. And was to never exceed a pittance percentage. And that if the federal government was now doing just the 17 enumerated duties specified in the Constitution that it is legally limited to doing, there would be no need for a federal income tax at all. Because all of the other duties would be being taken care of by the states and the federal government’s responsibilities, which don’t include nation-building, foreign aid, and being the world’s policeman, would be totally covered by the normal import duties, impost fees and ancillary other fees due them as part of those specific 17 enumerated duties.
So the question is not whether Warren Buffet should pay more.
It is why his secretary does not have to pay less.