Lift taxes for the rich: Warren Buffett

Veteran investor Warren Buffett has come up with the solution to America’s trillion-dollar budget woes – increase his taxes.

Buffett’s whose fortune was recently estimated at $US45 million, said in an interview with CNN yesterday that his tax rate was simply too low when compared to other workers, and the US government would need to increase taxes for higher income earners to plug the gaping hole in its budget.

“We’re going to have to get more money from somebody. The question is, do we get more money from the person that’s going to serve me lunch today, or do we get it from me? I think we should get it from me,” the investor known as the Oracle of Omaha said.

“I have a lower tax rate, counting payroll taxes, than anybody in my office. And I don’t have a tax shelter – I just take the form and fill out the numbers.”

For Buffett, the choice is simple: the Government can raise taxes or borrow.

“If you get $100 billion more of taxes… from people like me at the top, it means you borrow $100 billion less out of the economy. Somebody has to come up with that $100 billion… you’re taking the money from the economy either way.”

However, Buffett doesn’t advocate tax increases for all. Buffett says he “might very well cut taxes even further for the people at lower levels” once higher income earners are paying their fair share.

Buffett also turned his attention to Wall Street, comparing it to a church that does a lot of good for a lot of people, but also operates a casino.

“People have a propensity to gamble, and it gets made easier and easier for them,” Buffett said.

“One of the problems we still have is we have unbalanced incentives for managers of huge financial institutions.”

And he even had some advice for investors – steer clear of bonds in the current market.

“It’s quite clear that stocks are cheaper than bonds. I can’t imagine anyone having bonds in their portfolio when they can own equities.”