Saturday, December 03, 2011

Higher Tax Advocates' Hypocrisy

If I were an advocate of higher taxes, I would gladly pay high taxes.  That doesn't seem to be the case for a couple well know higher tax advocates:
  • Warren Buffet.  He is well known for saying he pays at a lower tax rate than his secretary.  Also, he believes that the wealthy should pay more taxes.  However, Mr. Buffet has contributed most of his wealth to the Gates Foundation, a charitable organization, and will avoid the estate tax of 55%.  When asked why Buffet didn't let his estate be taxed, his response was that the Foundation would be a better distributor of his money than the government.

    Also, Mr. Buffet could have paid higher taxes since the Treasury does accept deductible contribution to reduce the U.S. debt.   I'm surprised Mr. Buffet didn't choose to do this given his advocacy of the rich paying more taxes.

  • Senator John Kerry (D-MA).  Senator Kerry is a proponent of raising taxes on the wealthy, of which he is one   However, when it came to paying sales tax and excise taxes on the family yacht, Senator Kerry docked to the yacht in neighboring Rhode Island which has neither a sales tax or excise tax. 

    Senator finally decided to "voluntarily" pay the Massachusetts taxes after the media published the avoidance of his tax responsibility to his home state.
    I prefer to support those who do as they say, instead of only expect others to do as they say.  Both Warren To me, Warren Buffett and John Kerry rate pretty low in the "do as they say" category.

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    This is not financial or tax advice. Please consult a professional advisor.

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    1 comment:

    Brent said...

    "The Foundation would be a better distributor of his money than the government."

    Words have never been more true. Where does this faith that the "higher taxes" crowd has that the government spends money wisely come from? If you want to do good, contribute to worthwhile charities and demand more accountability and responsibility from your government.