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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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Why don't the idiot politicians reduce spending? Every one of them needs to be replaced!
I would add that this country, by 2016, will have survived 16 straight years of 2 of the worst Presdients in history. If we can do that, we ought to be able to go another 200 years!
Has anyone been able to watch the video. I have tried numerous times and it just skips over the video and goes to the next. I want to hear what Warren Buffet says from his own mouth and not just the reporters interpretation of it. I have sent an email to Today and asked why it isn't working and asked it to be repaired so that we can hear for ourselves. This is a very smart man and to squelch his words to only an interpretation from a reporter is a significant loss to all.
He's a bag of wind...
mmm, don't bother, the man is dying and is divesting himself of his wealth. Also he is still fighting to keep one of his companies from paying their "fair share" of taxes. Point? He has no skin in this game anymore and is a hypocrite to boot.
Buffet needs to just go away. Since when did this guy become the be all and end all on the economy? Oh I know when he supported high taxes and barry he is know the saint of the media. If Buffet wants to pay higher taxes feel free anyone can make a contribution on their own. He has tons of money, most of us in the middle are bleed dry by the local, state and federal governemnt. Taking from the producers and giving it to the non producers, it is a cornerstone of the Dumbocrat party. And sadly it is winning the day.
Waste of time and energy, our Lord and Savior in the WH will do as he chooses anyway. He does not listen except to the underprivileged; illegals; young; and the subsidized who voted for him. ho hum
It would be really easy for Warren Buffett to gift the government some money if he doesn't think he's paying enough taxes.
Put your money where your mouth is you old, worn out idiot! Just because he's getting old and feeling sentimental, he's changed his opinion. He sure didn't become rich from giving his money away.
What a hypocrite.
Buffet is proposing that he and his rich buddies can pay higher taxes without hurting the economy.
Where do you see hypocrisy in that proposal?
There have been opportunities in place to gift the government money. He's not paying extra to help lower the deficit. He could have been gifting all along. He wants to drag others down with him.
He says he hasn't been paying enough. He could have been all along.
The government isn't a charity.
But Buffett is a blowhard else he would have put his money where his mouth is.
You call someone a blow-hard becasue he thinks taxes could be raised on millionaires as a part of the solution to government deficits without endangering the economy?
Really?
The Government HAS become a charity. When half have their hands out & the other half is putting "STUFF" in their hands. That is a charity.
No I call someone a blowhard because all he is does is flap his lips and blow hot air out his ass to fool people like you. If Buffet really believed he, Obama, and other "rich" like him should pay more taxes; he and his buddy Barack would have demonstrated it by putting his money where his mouth is, and made a donation to the Dept of the Treasury to prove it.
A particular car is worth $30,000. Customer X is in a higher income bracket, so the car dealership tells him that it would cost him $100,000 for the car. Customer Y is in a lower income bracket, so the dealership tells him he can have it for $10,000. Customer Z is in an even lower income bracket, so the dealership tells him they can have it for free. The car is worth $30,000 but what you actually pay is based on your income. Sounds like a fair system, right?
"What's it going to mean to the world when he hangs up his investing shoes?"
The last true AMERICAN entrepreneur.......Be careful what you preach Mr. Buffet, the greedy American global elitists just might take out a contract on you to silence you once and for all.
Eliminate ALL deductions on ALL income over 1000 dollars per day.
It is clear that Buffett does not do his own taxes. The federal government does not tax anyone based on how wealthy they happen to be - not constitutional. The government does tax individuals based on how much annual income they happen to have in a calendar year.
Since those with high incomes get a large percentage of their income from their investments, they will shift their investment strategy to minimize the impact of changes in tax rates. That could well cause unintended consequences in terms of how investment capital is put to work.
Lets get some things straight:
Obama and the Democrats are responsible for what taxes we pay and what taxes we don't pay. Got it. Democrats made the Tax Plan we live under right now.
Obama has NOT had a Budget in 4 years. Got it.
Obama DOES NOT have an Economic Recovery Plan NOR a plan to reduce the Federal Deficit, reduce spending, or create JOBS.
Obama's only plan is to Raise Taxes on the Job Creators. Raise Taxes on the Rich. Raise Taxes on Corporations. Who pays those Taxes???? The Consumer pays those taxes. Obama knows that but he also knows YOU DON'T.
Obama's overall goal is to create chaos, hardships, and suffering, to gain more Power and blame your miserable life on Republicans and specifically Rich Republicans. Not Rich Democrats but just Rich Republicans.
Its all a SCAM. Just like the Democrats"Everyone deserves to buy a Home". How did that work for you?. The biggest SCAM dwarfs the Housing SCAM, its the ObamaHitler Care SCAM. 2013 and 2014 are going to be disastrous to the USA and YOU.
Virtually every point you make is false.
The basic income tax plan we live under are still the Bush tax cuts, extended. Obama and the Democrats are respoonsible for the extension, which was necessary to prevent Republicans from blocking the tax bill extension, unless the extension included the upper brackets. The same bill also included extensions for unemployment and payroll tax holidays.
Obama has produced a budget on-time every year, FY 2010 through FY 2013. Congress has not passed an Obama budget.
Obama has an Economic Plan and a Jobs Plan. Go to the White House website for both.
Part of Obama's economic plan is to REDUCE the corporate tax rate. The lack of consumer demand is a major factor in our current slow recovery. If tax increases are "passed through" to consumers, demand will decrease further (leading to renewed recession) or result in inflation (if demand remains the same). The logical course, given the lack of demand, would be to drop profit margins to hold market share, leading to a rationalization of the market (a weeding out of businesses capable of surviving only in good times).
Obama's purpose IS definitely to redistribute income, not to increase dependency, but to create wealth, based on a prosperous, restored middle class, capable of broadening the tax base, which will DECREASE the government's dependency upon the rich.
On the housing bubble...google "Bush June 2002 Atlanta Speech," for the Bush plan to build 5.5 million new homes for low income, minorities, which preceeded the 2003 to 2006 subprime lending boom. The deregulation or non-regulation of front line lender's lending standards (financial institutions NOT subject to CRA regulation), due to the demand of loans for securitization is what caused the subprime lending crisis.
You lost. Get over it.
stone6, thank you for admitting that Obama is a Redistributionist, taking money from those who earned it and giving it to those who did not and will waste it.
If it were not for a government that basically supports capitalism, those who earned it would have even less of it.
I have no problem in admitting that Obama is "redistributing." He admitted the same to Joe the Plumber, in 2008. Government has ALWAYS been involved in the economy and, to one degree or another, responsible for "distributing" the wealth of that economy.
The only question, in my mind, is what should the "fee" or "commission" be that government charges for providing it's services?
Let's see...what does government provide? Defense Department...but that's the easy one. Also enforces property rights and the sanctity of contract. Very tough to be a successful capitalist without those.
Buffet Hypocrite? His investment firm is currently fighting the amount of tax owed from three and four years ago in federal court. Obviously losing would affect his income. Or could it be he looking for some favoritism in a ruling by coming out in favor of Obama's raising taxes? That wouldn't happen when politics plays with big business?
Read between the lines? What do you think could happen?
Buffett then turned right around the VERY NEXT DAY and suggested that JAMIE DIMON, of the failed Bank of America, should be elected for SECRETARY OF "OUR" TREASURY!! Dimon should have been in jail a long while ago! He lost billions of the 99% American People's BAIL OUT MONEY!!! At least Bernie Madoff STOLE FROM THE RICH!!
Right on 'TR'
Ken Lewis was head of the Bank of America during the melt-down period. Dimon has never been CEO of Bank of America. He is head of JP MorganChase.
You're right my bad, stone6. It was Dimon who caused the $6B blunder @ Chase but let a woman take the fall - nice guy. Of course $6B is a drop in the bucket for the likes of Chase.
Dimon is a very successful CEO. Overall, he has made tons of money for his investors. He would be an excellent choice.
All I'm asking Prgrssive is for you to explain what kind of gov't you are proposing? Do you understand why we have a two party system? Do you understand what checks and balances mean? If you vote all the Republicans out of off, what is your plan?
The following is a report on the INCREASE in AFTER TAX INCOME, NOT tax paid.
Increase in after-tax income by group, 1979-2007;
Top 1% 281%
Top 5% 160%
Top 10% 125%
Top 20% 95%
Forth 20% 35%
Middle 20% 25%
second 20% 23%
Bottom 20% 16%
Figures are adjusted for inflation.
Source; Congressional Budget Office "Average After-Tax Household Income" June, 2010.
As you can see, there is plenty of extra disposable income on the part of the top income earners to contribute more to reduce the deficit.
Did the top wage earners create this problem. I would say no way and it is not their responsibility to pay it back. What it the matter with you?
Here is why the first and biggest round of tax increases must be on the top 1 - 2%.
The poor have zero disposable income, to raise taxes on them would be to literally take food out of their mouths. The same holds true for the lower middle class. The rest of the middle class has very little disposable income as their wages have remained flat over the last decade while those at the top have increased almost 3 fold. To raise taxes on the middle class would take consumer spending out of the economy, of which 70% of comes from.
Then we have the top. To ask them to pay 4 pennies on the Dollar more only on income they receive above $250,000 would not make a dent in their standard of living whatsoever.
It's always easier to spend someone elses money.
The money was already spent. Two wars and a new entitlement. We have to pay our bills, there is no choice in the matter.
JWM, the poor are poor because of their abyssmal choices. How do I know this? Because I used to be there and crawled out of the muck on my own.
If Buffett wants to pay more taxes why don't he just mail in a check? For every dime in new taxes the liberals will spend 15 cents. History bares that out!!!
One of the most sensible things our Republic has done is to plan elections in November. What's a better time to pick out a turkey!
You mean elect a turkey!!!
None of these people live in the real world, they have no idea what a loaf of bread or a gallon of milk costs. I mean really, Polesi is worth $101 Million and how much is Buffet worth?
BERKSHIRE HATHAWAY FRAUD- It is common knowledge to those who own substantial shares of class A Berkshire Hathaway to use trusts to avoid taxes. They put the shares into "street name" where the IRS and the SEC can not recognize the real owner. When the shareholder dies, the beneficiary uses the trust to transfer the shares without reporting them to the IRS and the SEC. They keep the street name on the shares and change the ownership. This is what Warren Buffett and Bill Gates did to my grandfathers shares to maintain controlling (over 51%) interest in Berkshire Hathway no matter what the shareholders vote every May. Bill Gates has been illegally voting my grandfathers shares since he dies three years ago since the transaction of the shares are illegal. This is the main reason that Buffett doesnt pay a dividned because this would expose all the fraud to the IRS. As of right now, shares of Berkshire Hathaway do not have a federal tax id number because they have not paid out a dividend since 1967. My grandfather paid off attorney, judges. attorney generals, etc to keep this out of the courts. Look up Judge Robert Ensz in Nebraska because he was asked politely to resign after my grandfather paid him $200,000 to look the other way. Berkshire also committted stock fraud in 1999 with NBH INC and OBH INC. I would love to explain this in full detail and get this out. This is playing out right now in Nebraska and more specifically Cuming County.
It isn't just the income tax rate that is the problem. The whole taxation system needs an overhaul. Too much money is slipping out of this country with corporations dumping profits in overseas companies with better tax rate for those corporations. Also, individuals parking income in overseas accounts without paying taxes on that income is bleeding this country. Stop the blood letting. It is only the wealthy that can afford these shenanigans. The way things are, the wealthy will scream and holler about the tax rate, but they will let it go, because they know much of their income will never be taxed anyway. Then bump the rates.
John, gee, the wealthy members of Congress got those loopholes into tax code to benefit themselves and their buddies. Good luck closing them.
Watch what Buffet does not what he says. For years he's sheltered his cash in trusts and corporate accounts while calling for higher taxes on everyone else.
Hey, Warren, how about backing the idea that we need to stop the foreign "giveaways." We can start there instead of taking again from American taxpayers.
@redtailedhawk1
Amen to that!!!
Raise taxes as high as you want...the Government will still spend every dime plus a Billion dollars more every flippin year.
Yes they will be reading about Buffet for generations to come. Not because of his knowledge, or ability, but because they will be wonder how an individual as stupid as he is could be that rich. Do you liberals really believe that he will pay his fair share. He has more loop holes to bypass the system than anyone in the world. Your are going to find out that he does not pay his fair share, never has, and never will.
BERKSHIRE HATHAWAY FRAUD- It is common knowledge to those who own substantial shares of class A Berkshire Hathaway to use trusts to avoid taxes. They put the shares into "street name" where the IRS and the SEC can not recognize the real owner. When the shareholder dies, the beneficiary uses the trust to transfer the shares without reporting them to the IRS and the SEC. They keep the street name on the shares and change the ownership. This is what Warren Buffett and Bill Gates did to my grandfathers shares to maintain controlling (over 51%) interest in Berkshire Hathway no matter what the shareholders vote every May. Bill Gates has been illegally voting my grandfathers shares since he dies three years ago since the transaction of the shares are illegal. This is the main reason that Buffett doesnt pay a dividned because this would expose all the fraud to the IRS. As of right now, shares of Berkshire Hathaway do not have a federal tax id number because they have not paid out a dividend since 1967. My grandfather paid off attorney, judges. attorney generals, etc to keep this out of the courts. Look up Judge Robert Ensz in Nebraska because he was asked politely to resign after my grandfather paid him $200,000 to look the other way. Berkshire also committted stock fraud in 1999 with NBH INC and OBH INC. I would love to explain this in full detail and get this out. This is playing out right now in Nebraska and more specifically Cuming County.