Buffett: What the rich owe the rest


Warren Buffett supports a progressive tax system (similar to Frank) and in this interview he explains this and his reasons for supporting that type of tax system, which largely have to do with him believing that he never would have been as successful as he is had he not lived in the United States.


  1. Brian D Said,

    December 7, 2012 @ 4:03 pm

    I agree with Buffett. A progressive tax system is definitely needed and that all Americans having economic success owe a portion to other people for making it happen. I believe this relates back to the readings of Frank in that a government can do nothing if it doesn’t have money and therefore people have to be taxed to raise government revenue. The rich should definitely pay there fair share. Though the excuse is that they worked for that money, a part of it is because they don’t pay as high a tax percentage as the rest of America. It’s time to step up.

  2. atanasse Said,

    December 8, 2012 @ 7:09 am

    I see the progressive tax system and the reasons behind it – taxing the richer people, very similar to the Robin Hood theory (as discussed in the book “Rich Dad Poor Dad” by Robert Kiyosaki). The Robin Theory is basically, taking money from the rich people and giving it to the poor. In fact in the beginning, in England and America, people would not pay taxes. The government would collect voluntarily money from the people (which is in opposition to chapter 18’s discussion of the public goods being inefficient because of that). The first constant taxes that appeared, were in fact taxing only the RICH population. However, that turned out in disfavor for the lower and middle class as well. This happened, because the rich people are the ones who worked hard for their money, so they were most informed about the situation, the taxes, the regulations. Therefore, they would always find a way to pay less taxes than the others (this is what the commentator from the video referred to, he said that some rich people pay less taxes than lower income class). So in the end, the progressive tax system is not that needed, as it will probably heavily burden the middle class, as the high income class will know how to get through it by paying less, while the poor will pay less because of the low income it has initially. Therefore, the middle class will account for the others.

  3. lenkerm Said,

    December 8, 2012 @ 9:40 pm

    I really do not see the progressive consumption tax as a Robin Hood tax. It really just promotes less spending and more saving. If wealthier people save more, everyone else will see a decrease in relative goods. This decrease allows for saving for progressive goods. As Buffett says, the wealthy owe it to everyone who have helped them to at least pay them same tax rate as everyone else.

  4. ryan Said,

    December 12, 2012 @ 7:32 pm

    After reading this article I agree with Warren Buffett. A progressive tax system necessary and would ensure that individuals would be more likely to save and invest rather than spend. This would be much better for the economy in the long run because individuals would be much more prepared if another economics crisis were to happen because then they would not try to borrow money when they already had funds saved.

RSS feed for comments on this post

Leave a Comment

You must be logged in to post a comment.