In the editorial printed Monday, Buffett suggested the implementation of a minimum tax rate of 30 percent on incomes of $1 million to $10 million and 35 percent for anything above.
“A plain and simple rule like that will block the efforts of lobbyists, lawyers and contribution-hungry legislators to keep the ultra rich paying rates well below those incurred by people with income just a tiny fraction of ours,” Buffett wrote.
“Only a minimum tax on very high incomes will prevent the stated tax rate from being eviscerated by these warriors for the wealthy,” he added.
Buffett’s new op-ed is a follow-up to his 2011 editorial in which he used himself and his secretary as an example of tax inequality, reports Reuters. The example, that his secretary paid higher taxes than he did on a fraction of his salary, became a powerful political talking point throughout the 2012 election. President Obama has also pushed something called the “Buffett Rule,” which would implement the investor’s suggestions.
Critics have said that the 30 percent tax rate would stifle job creation, a criticism that Buffett answers in his new op-ed.
“So let’s forget about the rich and ultra rich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased,” he said. “The ultra rich, including me, will forever pursue investment opportunities.”
Buffett also targeted politicians, suggesting that Congress’s stalling on a budget deal and tax reform is the only thing that would stop the super rich from investing.
“In the meantime, maybe you’ll run into someone with a terrific investment idea, who won’t go forward with it because of the tax he would owe when it succeeds,” Buffett said. “Send him my way. Let me unburden him.”
You can read Buffett’s entire column here.