NYTimes, August 14, 2011: http://www.nytimes.com/2011/08/15/opinion/stop-codd ing-the-supe!-!ich.htm "#!$1%p&gew&nted$p!int Stop Coddling the Super-Rich By WARREN E.

BUFFETT 'm&h& '() e&de!s h&*e &s+ed ,o! -sh&!ed s&c!i,ice.. /ut when they did the &s+ing, they sp&!ed me. 0 chec+ed with my meg&-!ich ,!iends to e&!n wh&t p&in they we!e e1pecting. They, too, we!e e,t untouched. 2hi e the poo! &nd midd e c &ss ,ight ,o! us in A,gh&nist&n, &nd whi e most Ame!ic&ns st!ugg e to m&+e ends meet, we meg&-!ich continue to get ou! e1t!&o!din&!y t&1 3!e&+s. 4ome o, us &!e in*estment m&n&ge!s who e&!n 3i ions ,!om ou! d&i y &3o!s 3ut &!e & owed to c &ssi,y ou! income &s -c&!!ied inte!est,. the!e3y getting & 3&!g&in 15 pe!cent t&1 !&te. 'the!s own stoc+ inde1 ,utu!es ,o! 10 minutes &nd h&*e 50 pe!cent o, thei! g&in t&1ed &t 15 pe!cent, &s i, they6d 3een ong-te!m in*esto!s. These &nd othe! 3 essings &!e showe!ed upon us 3y egis &to!s in 2&shington who ,ee compe ed to p!otect us, much &s i, we we!e spotted ow s o! some othe! end&nge!ed species. 0t6s nice to h&*e ,!iends in high p &ces. 7&st ye&! my ,ede!& t&1 3i 8 the income t&1 0 p&id, &s we &s p&y!o t&1es p&id 3y me &nd on my 3eh& , 8 w&s 95,:;8,<44. Th&t sounds i+e & ot o, money. /ut wh&t 0 p&id w&s on y 1<.4 pe!cent o, my t&1&3 e income 8 &nd th&t6s &ctu& y & owe! pe!cent&ge th&n w&s p&id 3y &ny o, the othe! 20 peop e in ou! o,,ice. Thei! t&1 3u!dens !&nged ,!om ;; pe!cent to 41 pe!cent &nd &*e!&ged ;5 pe!cent. 0, you m&+e money with money, &s some o, my supe!-!ich ,!iends do, you! pe!cent&ge m&y 3e & 3it owe! th&n mine. /ut i, you e&!n money ,!om & =o3, you! pe!cent&ge wi su!e y e1ceed mine 8 most i+e y 3y & ot. To unde!st&nd why, you need to e1&mine the sou!ces o, go*e!nment !e*enue. 7&st ye&! &3out 80 pe!cent o, these !e*enues c&me ,!om pe!son& income t&1es &nd p&y!o t&1es. The meg&-!ich p&y income t&1es &t & !&te o, 15 pe!cent on most o, thei! e&!nings 3ut p&y p!&ctic& y nothing in p&y!o t&1es. 0t6s & di,,e!ent sto!y ,o! the midd e c &ss: typic& y, they ,& into the 15 pe!cent &nd 25 pe!cent income t&1 3!&c+ets, &nd then &!e hit with he&*y p&y!o t&1es to 3oot. /&c+ in the 1:80s &nd 1::0s, t&1 !&tes ,o! the !ich we!e ,&! highe!, &nd my pe!cent&ge !&te w&s in the midd e o, the p&c+. Acco!ding to & theo!y 0 sometimes he&!, 0 shou d h&*e th!own & ,it &nd !e,used to in*est 3ec&use o, the e e*&ted t&1 !&tes on c&pit& g&ins &nd di*idends. 0 didn6t !e,use, no! did othe!s. 0 h&*e wo!+ed with in*esto!s ,o! 50 ye&!s &nd 0 h&*e yet to see &nyone 8 not e*en when c&pit& g&ins !&tes we!e ;:.: pe!cent in 1:<5-<< 8 shy &w&y ,!om & sensi3 e in*estment 3ec&use o, the t&1 !&te on the potenti& g&in. >eop e in*est to m&+e money, &nd potenti& t&1es h&*e ne*e! sc&!ed them o,,. And to those who &!gue th&t highe! !&tes hu!t =o3 c!e&tion, 0 wou d note th&t & net o, ne&! y 40 mi ion =o3s we!e &dded 3etween 1:80 &nd 2000. You +now wh&t6s h&ppened since then: owe! t&1 !&tes &nd ,&! owe! =o3 c!e&tion. 4ince 1::2, the 0.).4. h&s compi ed d&t& ,!om the !etu!ns o, the 400 Ame!ic&ns !epo!ting the &!gest income. 0n 1::2, the top 400 h&d &gg!eg&te t&1&3 e income o, 915.: 3i ion &nd p&id ,ede!& t&1es o, 2:.2 pe!cent on th&t sum. 0n 2008, the &gg!eg&te income o, the highest 400 h&d so&!ed to 9:0.: 3i ion 8 & st&gge!ing 922<.4 mi ion on &*e!&ge 8 3ut the !&te p&id h&d ,& en to 21.5 pe!cent.

The t&1es 0 !e,e! to he!e inc ude on y ,ede!& income t&1, 3ut you c&n 3e su!e th&t &ny p&y!o t&1 ,o! the 400 w&s inconse?uenti& comp&!ed to income. 0n ,&ct, 88 o, the 400 in 2008 !epo!ted no w&ges &t & , though e*e!y one o, them !epo!ted c&pit& g&ins. 4ome o, my 3!eth!en m&y shun wo!+ 3ut they & i+e to in*est. @0 c&n !e &te to th&t.A 0 +now we m&ny o, the meg&-!ich &nd, 3y &nd &!ge, they &!e *e!y decent peop e. They o*e Ame!ic& &nd &pp!eci&te the oppo!tunity this count!y h&s gi*en them. B&ny h&*e =oined the Ci*ing > edge, p!omising to gi*e most o, thei! we& th to phi &nth!opy. Bost wou dn6t mind 3eing to d to p&y mo!e in t&1es &s we , p&!ticu &! y when so m&ny o, thei! ,e ow citiDens &!e t!u y su,,e!ing. Twe *e mem3e!s o, Eong!ess wi soon t&+e on the c!uci& =o3 o, !e&!!&nging ou! count!y6s ,in&nces. They6*e 3een inst!ucted to de*ise & p &n th&t !educes the 10-ye&! de,icit 3y &t e&st 91.5 t!i ion. 0t6s *it& , howe*e!, th&t they &chie*e ,&! mo!e th&n th&t. Ame!ic&ns &!e !&pid y osing ,&ith in the &3i ity o, Eong!ess to de& with ou! count!y6s ,isc& p!o3 ems. 'n y &ction th&t is immedi&te, !e& &nd *e!y su3st&nti& wi p!e*ent th&t dou3t ,!om mo!phing into hope essness. Th&t ,ee ing c&n c!e&te its own !e& ity. Fo3 one ,o! the 12 is to p&!e down some ,utu!e p!omises th&t e*en & !ich Ame!ic& c&n6t ,u ,i . /ig money must 3e s&*ed he!e. The 12 shou d then tu!n to the issue o, !e*enues. 0 wou d e&*e !&tes ,o! ::.< pe!cent o, t&1p&ye!s unch&nged &nd continue the cu!!ent 2-pe!cent&ge-point !eduction in the emp oyee cont!i3ution to the p&y!o t&1. This cut he ps the poo! &nd the midd e c &ss, who need e*e!y 3!e&+ they c&n get. /ut ,o! those m&+ing mo!e th&n 91 mi ion 8 the!e we!e 2;5,88; such househo ds in 200: 8 0 wou d !&ise !&tes immedi&te y on t&1&3 e income in e1cess o, 91 mi ion, inc uding, o, cou!se, di*idends &nd c&pit& g&ins. And ,o! those who m&+e 910 mi ion o! mo!e 8 the!e we!e 8,2<4 in 200: 8 0 wou d suggest &n &ddition& inc!e&se in !&te. By ,!iends &nd 0 h&*e 3een codd ed ong enough 3y & 3i ion&i!e-,!iend y Eong!ess. 0t6s time ,o! ou! go*e!nment to get se!ious &3out sh&!ed s&c!i,ice. 2&!!en G. /u,,ett is the ch&i!m&n &nd chie, e1ecuti*e o, /e!+shi!e H&th&w&y.