Wong Chun Wai and Warrenn Buffett’s ‘Tax the Rich’

From the following excerpt from The Star 14 Oct 2011, I get the vibe of his supporting Warren Buffett’s proposal (which would be in line with his known Obama/liberal-philic tendencies):

Will you take the RM10O?
Why Not
By Wong Sai Wan

The middle-class now cites Warren Buffett’s recent statement to justify the need to tax the rich.

As one of the world’s richest men, he acknowledged that his secretary paid more taxes than he did. (He said this when trying to justify US President Barack Obama’s plan to tax wealthy Americans.)

Buffet is the third richest man in the world and is worth US$47bil (RM147bil) at last count.

Some are even arguing for the immediate imposition of the Goods and Services Tax (GST) so that the per­­so­­nal income tax could be reduced.

The middle-class claims that the GST is a consumption tax that means one is only taxed if one buys something.

So if you are frugal as Buffett, who does not buy much for himself, then you will pay minimal tax.

As I noted lengthily in my reply to commentor eternal’s remark, Warren Buffett is by no means being wholly altruistic by wanting higher taxes:

Buffett Profits from Taxes He Supports

Buffett regularly lobbies for higher estate taxes. He also has repeatedly bought up family businesses forced to sell because the heirs’ death-tax bill exceeded the business’s liquid assets. He owns life insurance companies that rely on the death tax in order to sell their estate-planning businesses.

Buffett Profits from Government Spending

Buffett made about a billion dollars off of the Wall Street bailout by investing in Goldman Sachs on the assumption Uncle Sam would bail it out. He also is planning investments in ethanol giant ADM and government-contracting leviathan General Dynamics.

If your businesses’ revenue comes from the U.S. Treasury, of course you want more wealth.

Stop coddling Warren Buffett, Beltway Confidential

And The So-Called “Buffett Rule” Wouldn’t Even Touch Its Ostensible Target, Warren Buffett.

And yet more:

Warren Buffett recently claimed that he had paid only $6.9 million in taxes last year. But Berkshire Hathaway, of which Mr. Buffett owns 30%, paid $5.6 billion in corporate income taxes. Were Berkshire Hathaway a Subchapter S corporation and exempt from corporate income taxes, Mr. Buffett’s personal tax bill would have been 231 times higher, at $1.6 billion.

And of course:

But if he were truly sincere, perhaps he might simply try paying the taxes the Internal Revenue Service (IRS) says his company owes? According to Berkshire Hathaway’s own annual report — see Note 15 on pp. 54-56 — the company has been in a years-long dispute over its federal tax bills. – Warren Buffett’s taxing hypocrisy

The way to boost the economy, employment, standards of living – you name it! – is by permanently cutting taxes, not by temporary ‘Stimuluses’. History proves it. Modern history reaffirms it. Learn from history.

One Response to “Wong Chun Wai and Warrenn Buffett’s ‘Tax the Rich’”

  1. Sherry Says:

    Your last sentence is something I learned in high school economics class. Its just so…fundamentally simple. Logical. Common sense!

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