Legendary investor Warren Buffett agrees with President Barack Obama that Bush-era tax cuts should be continued only for the lower and middle classes, not the wealthy.
Obama favors extending the tax reductions only for households with annual income of $250,000. But Buffett told CNBC that the $250,000 threshold may be too low.
“The way the tax system has gotten tilted toward guys like me over the last 20 years, as opposed to the middle class, is a little obscene,” Buffett said.
“So, I think, I'm not saying $250,000 necessarily. But I just think that when a country needs more income, and we do — we're only taking in 15 percent of GDP (through taxes) — they should get it from the people that have it.”
The economy’s sluggish growth path doesn’t change Buffett’s view, he says. “I don't want to raise 'em on 90, 98 percent of the people,” Buffett explained.
“But I think the inequities that have gone into the tax code in the last 20 or 30 years, I just think it's been tilted toward the rich.”
And Buffett says Obama shouldn’t give in easy. “I'd play pretty tough if I was him.”
David Stockman, President Reagan’s budget director, agrees with Buffett. “The Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing,” he wrote in The New York Times.
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