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Subscribe to RSSSuper investor Warren Buffett, the chairman of Berkshire Hathaway, speaks with TODAY's Matt Lauer about Cyber Monday sales figures, consumer confidence and the future of the American economy.
Raising taxes on the rich won't dampen economic growth and would "raise the morale of the middle class," billionaire investor Warren Buffett told the TODAY show Tuesday.
Echoing a theme he has stressed often, Buffett downplayed the idea that higher taxes for the wealthy, as proposed by the Obama administration as part of a deal to resolve the "fiscal cliff," would scare off critical investment for job creation. Republicans argue that raising taxes on people in higher tax brackets would choke off investment and slow the economy at a time when it can ill afford it.
Buffett disagrees. "No, and I think it would have a great effect on the morale of the middle class," said Buffett, in the first of two live interviews with TODAY's Matt Lauer. "They've had to watch guys like me pay below the rate by that paid by the people in my office."
Also known as the "Oracle of Omaha" for his investing acumen, Buffett's views on the economy are widely followed, including on whether we're really going to go off the "fiscal cliff" of $500 million in tax hikes and spending cuts.
The CEO of Berkshire Hathaway has been vocal on the economy lately, proposing in a New York Times op-ed Monday that there be a minimum tax for the wealthy.
"I'm confident," said Buffet when asked about how he was feeling about the economy. "I can't speak for others, but at Berkshire Hathaway, we buy and sell stocks every day. America's a winner."
Lauer brought up a recent quote from Honeywell CEO David Cote who told Meet the Press that he and others like him were feeling a lack of confidence in the political process, so much so that the uncertainty was making them keep their money on the sidelines and preventing them from making additional investments, including hiring.
"At Berkshire Hathaway, we're investing 9 billion in plant equipment, a record, breaking last year's record. It's always uncertain," said Buffett.
"December 6th 1941 was uncertain," said Buffett, referring to the day before the attack on Pearl Harbor. "We just didn't know it."
When asked whether Congress would really enact a strong proposal such as the one Buffett made in his Times op-ed, which suggested setting a minimum 30 percent tax for millionaires, Buffet said, "I wouldn't be surprised. They're going to make a deal."
Now there's a new Buffett book, "Tap-Dancing to Work" that trace his career through 80 different FORTUNE Magazine articles over the years. If there's one thing that stuck out from the timeline, Carol Loomis, FORTUNE editor, who collected and expanded the articles for the book, told TODAY, it's "how consistent he's been in his thinking. He's never changed."
"I couldn't be more boring," said Buffett. "I just look at the facts and wherever they lead me, I go."
Is this the secret to Buffett's success? Lauer asked Loomis. It's hard, she said, because other investors "get emotional."
Buffett is known for finding undervalued companies with strong fundamentals and good management. "It's simple, but not easy," said Loomis. "That's why other people can't do it. He's thinking about business 24/7."
Lauer asked if this book was a goodbye letter of sorts. "What's it going to mean to the world when he hangs up his investing shoes?" he asked.
Loomis said, "He will be remembered. His role in life will be remembered for the next century. I don't know whether investing or philanthropy is going to be the lead item. People are going to be reading about Buffet 100 years from now."
About that retirement... "Got a date in mind?" Lauer asked the 82-year old businessman.
Buffett just laughed.
Read a free excerpt from the book Tap-Dancing to Work.
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"improve the morale of the middle class" So Mr. Buffet thinks that the people of the Middle Class are such simpltons that even though I know the rich are already paying a disproportional share of the taxes, I will "feel better" if you tax them a little bit more? I guess Mr. Buffet thinks the people of the middle class are too stupid to realize that if you take every dollar the rich have, roll it up and throw it at the debt of this nation it would hardly make a dent. But you think it would make me "feel better"? I can only guess that Mr. Buffet assumes the middle class is envious of the wealthy. So if we can "stick it to the rich" it will boost the moral of the middle class "folks" Mr. Buffet, I don't need to stick it to anybody to boost my moral. You want to make me feel better? Let's take the tumble off the "Fiscal Cliff". Let's take the tumble, pay the piper, bite the bullet, let the chips fall where they may. Then we can all suffer a little, eat a little less, spend a little less, get a few less free hand outs, trim some fat off the budget, get some government spending under control by force, because that is the only way it will ever happen. And then maybe get back to the real world where we can't all have everything we want. The Government can only spend what it has. And while we are at it, get rid of that thing called the Federal Reserve. We have elected officials and a treasury, we don't need a federal reserve.
Rod, making the middle class feel better and/or 'sticking it to the man' seems to be the economic policy of this administration. What other administration ever said it's not fair that some people make a lot more than others? Well, American admin I mean. I realize Mao, Castro, Marx and others were all for redistribution of wealth...
Contributing to the problem is low wages. Any time businesses don’t provide employees with insurance plans and don't pay a Living Wage to make ends meet, then the rest of us, taxpayers are paying for ANY government support their employees are receiving, such as welfare, food stamps, etc.
altalks
Just what is a "living wage"? Should a company pay a "living wage" for a student to sweep the floors or learn a job? Just how much should a person make for a low skilled job?
A LIVING WAGE LAW is already in place in several states. One place that has a LIVING WAGE LAW is at the Los Angeles Airport area, for hotel workers & the hotels are still doing business & making money as usual but now these workers can pay more taxes, support their families & can contribute to the U.S. economy as consumers. This will help get the economy going, with their consumer spending, since businesses are still clamoring for consumer spending (retail sales). Consumers are 70% of the economy & are JOB CREATORS. . "If all businesses paid a Universal Living Wage, we could reduce the tax burden on every single American!"
I don't think that we will EVER completely recover from the damage that Bush did to our economy. That little simpleton should burn in Hell for what he did to America.
Bush was a bad President.
Obama is even worse. I am embarrassed by his incompetence.
It is strange that when people complain about Obama's impact on the economy, the liberal left responds loudly that it is congress who is responsible for spending and not the president, yet the same liberal left blames Bush for destroying the economy and not the then sitting congress. Is that just blatently hypocritical or the liberal lefts need to ignore that congress was ruled by democrats (Reid, Pelosi, Obama, ...) when the economy tanked during the Bush administration?
has buffett paid the billions hes fighting with theirs about??? if he really wanted to pay his fair share why fight just pay the billions he owes
Mr. Buffet has paid more taxes than thousands of Americans combined.
If Mr. Buffett wants to "pay his fair share" it's easy. All he has to do is sell his Berkshire stock and then buy it back. Since he no doubt carries it at an almost zero cost basis, he will be taxed on virtually 100% of the proceeds. That should assuage his guilt. Furthermore, if he thinks his marginal rate is not high enough, he can donate whatever he wants to a special address the Treasury maintains for just that sort of thing.
Oh, wait, he can't - he's not telling you that he gave away most of his wealth in one of the biggest estate tax dodges, along with Bill Gates, that we are likely to see in our lifetimes. He conveniently forgets to mention that when he is out being a gadfly for what he thinks is "fair". These are the same clowns who tried to get Steve Jobs to do the same. He told them no. Probably not that politely, though.
But that's also not in the nature of someone who wants you to think he's your good 'ol Uncle Warren. This is a guy who has literally gutted companies he invests in. He gets special classes of stock that pay outrageous dividends and are first at the trough before common shareholders. This is a guy whose terms are so onerous that companies can't wait to get him off their ownership lists.
He also like it when you are stupid enough to follow him on investments, such as the one he made in GE. Common shareholders have never been worse off than since he bought into GE.
Here's an idea, Mr. Buffett: Shut up and stop pretending you have any comprehension of the other 99%, or, in this case, the other 99.8+% of the earners in this country. You don't. You run a publicly traded company and you irresponsibly shoot your mouth off to the potential detriment of your shareholders. If you want to be an activist, resign and go fight malaria with Mr. and Mrs. Gates.
Tax people that have extra money, not people who on a daily basis have to choose between medicine and food.
Those people are not paying tax now, because we do and should take care of the needy.
What exactly is the benefit of taxing the poor?
Who asked to tax the poor? If you read what I wrote it was they are not paying nor should they but who are you to decide who has extra money?
I have money saved for one daughter to go to college and for my other daughters wedding, is that extra money to you?
I have read and listen to the intelligent advice that Mr. Buffett has been trying to give to the American politicians and to this day they have failed to listen.
They all have to remember that Mr. Buffett has forgotten more then they will ever know.
Brace yourself America, the fiscal cliff will happen because the politicians will not listen and I feel very sorry for President Obama, who by the way I predicted he would get back in office.
The problem is too many people are paying nothing. They need to pay as well. Yes even poor people. Anyone receiving entitlements needs to realize where the money is coming from. Then maybe a cut in their entitlements won't be as painful. as long as they have too pay less tax.
We need a tax on wealth as well, otherwise when the wealth has been accumulated by one person the game is over.
How about setting top rate at Republican President General Dwight Eisenhower's era rate - 90%? Worked for repub leaders 50-60 years ago when the country was strongest and middle class grew the most.
First of all, very few if any, paid the 91% rate. Ways were found to shelter the money. So why even have such a rate....only a fool would make the effort to hit the income level that qualifies for that top marginal rate just so they could give 91% of it to the government. But if we follow your logic....let's go back to the 50"s for those rates, then let's also go back to the budget for the 50"s. I'll sign off on that in a heart beat. But I guess policies from 60 years ago may not be what we need.
Gotta admire Buffett on one level and despise him on another. Tax the rich and the economy will be fine? Go ahead. Raise their rates. Feel good about yourselves as (at the Clinton rate) the government is funded for 8 days or so.
On the other hand, he is playing the libbies like a fiddle. He protects himself from their hateful venom by talking their talk. Take a look at his investment history as it relates to taxes and guess what? He manipulates things to avoid taxes as well!
How does it feel to be used?
Income tax has been and will continue to be a poor choice for funding the country. We have a growing percentage of non/low contibutors both at the extreme high end and also the 50 % low end. The middle 100K to 750K earners will never produce enough tax to make the spenders in DC content. The answer is scrap all state and federal income tax and replace it with a tax on all retail purchases I believe someone has called this the fair tax. It pulls all under the table money out makes high end users pay a much higher amount of tax than the low/middle income earners. Can i get support from both sides on this?
All people receive a monthly stipend to cover the tax on necessities, the amount to be formulated by the goverment and paid by the goverment on the first of each month.
This will take care of the revenue side to the equation someone better than me will have to decide how to get the big spenders in DC to slow down. The above does get rid of one large goverment agency, IRS that is saving the taxpayer I think around 100 billion per year.
bill austin has no idea what he is talking about. No problem with additional tax on the rich, probably a good idea within limits. In case bill austin wants to join the real world there IS a difference between spending and investing. Rich can only spend so much, it is what is invested that makes a difference. give consumers money to spend in form of lower taxes and encourage rich to invest. without investment there are no jobs and without spending there is no investment. taxing only the rich accomplishes little except to drive investment overseas and appease all those who are consumed with envy. We all have a stake in this and should all contribute.
Warren Buffett is the world's greatest investor. Economist? Not so much...
How much is enough from the wealthy? Let us take 100 percent of their income and assets and it would not pay off the national debt. Let us take 100 percent of their income and assets and 100 percent of all income and assets by all Americans and it would not pay off our debt. This debt which was doubled by Obama is not due to lack of revenue but lack of spending restraint. No one is radical enough to truly advance and promote the actual elimination of any department or government, but unless there is a radical cut in government and government spending our grandchildren will not have an "American Dream" to which to aspire.
Buffett I'm sure that raising taxes on the rich won't hurt the economy, but Obama wants to raise taxes on any Americans making over $200,000, I do not consider that being rich, that does not even come close. Obama campaigned on taxing millionaires for most of the campaign, now he is stating that it was for the upper level income earners. Obama stick to your guns, you might of fooled many Americans but not me, millionaire and $200,000 is a far cry and those making $200,000 are spending every cent on their home, clothes, food and children's education and retirement.
Buffett could care less. Most of his money is from capital gains which would not be taxed at a higher rate, only regualr income.