Buffett Calls Republicans, McConnell Out; Will Match Excess Tax Contributions

Billionaire Warren Buffett got cheeky in response to Senator Mitch McConnell’s recent proposal to “send in a check” to help minimize America’s $1.2-1.3 billion annual deficit.

In a Time magazine exclusive interview, Buffett, worth approximately $45 billion retorted, calling his bet and raising him: “If we go to a contribution system, I’ll match the total contribution made by all Republican members of Congress and I’ll even go three-for-one with McConnell.”

The “Oracle of Omaha” joked, “It restores my faith in human nature to think that there are people who have been around Washington all this time and are not yet so cynical as to think that [the deficit] can’t be solved by voluntary contributions.”

The legendary investor gave his two-cents in an August issue of the New York Times in which he argued that the current American tax system favors the wealthy, leaving an unfair obligation to the low and middle classes. He boldly recommended heightened taxes for the most affluent Americans and said that most ultra-wealthy Americans wouldn’t mind contributing more to help the nation get out of the current hole

Buffett’s contentious proposition didn’t sit well with Republicans who have lobbied to keep taxes low for exceptionally wealthy Americans.

Representative Michelle Bachmann also asked that if the businessman was so keen on taxing others’ fortunes, why didn’t he simply give his wealth away to the federal government.

Ideally, Buffett explained that he would be taxed more than the expected 17% rate he currently pays on his net adjusted income. In theory, with the additional funds, he would hope to help those who were not as successful in the market economy.

The 81-year-old maintains his faith in market capitalism, illustrating that the first role of society is to produce the goods and services that its people want and need.

“What you need is a tax system that essentially takes very good care of the people who just aren’t particularly well adapted to a market system in capitalism but are nevertheless good citizens…”

Buffett also laid out a series of suggestions to get America out of its current rut including: progressive consumption taxes, punishments for careless or crooked corporate directors and an revamped medical care system.

While the business tycoon remains bullish on the nation’s future, he is vocal about his displeasure with partisan politics and had questioned specific Republicans, including two current contenders vying for the GOP position in 2012’s presidential race.

Once again, in referring to the aforementioned contribution taxation policy, Buffett stated, this is “a tax policy that only a Republican can come up with.” Sounds like fighting words to me—but it seems Buffett is willing to back them up all the way to the bank.

 

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